Luxembourg Investment Fund ¦ Prospectus ¦ suggested wording for a “Financial Crime Risk Notice”

Luxembourg Investment Fund ¦ Prospectus ¦ suggested wording for a “Financial Crime Risk Notice”

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Anyone investing in an investment fund expects clear information about opportunities and risks. In addition to traditional risks such as market fluctuations or interest rate changes, information on money laundering, terrorist financing, proliferation financing and other forms of financial crime is becoming increasingly important.

Legislation requires investment funds to provide investors with comprehensive information about all relevant risks. The background to this is that investment funds - despite diverse and diligent controls - could in principle be misused for illegal activities. An investment fund can be affected both directly, for example through transactions, and indirectly, for example through assets or business partners that have become problematic. This includes the illegal funds movement (money laundering), the financing of terrorism or the provision of funds for the proliferation of weapons of mass destruction. Other forms of financial crime such as fraud or breaches of sanctions cannot be completely ruled out either.

Risk notices create transparency and enable investors to better assess the potential impact on their investment. This includes, for example, official investigations, frozen accounts, financial losses or reputational damage to the investment fund. With a clear presentation of risk, fund providers promote responsible investment decisions and strengthen confidence in the integrity of the financial system.

This template serves as a suggested wording to inform investors specifically about risks in connection with money laundering, terrorist financing, financing the proliferation of weapons of mass destruction (so-called proliferation financing) and other forms of financial crime. It raises awareness of potential risks and strengthens confidence in the investment fund.
Reference:
Article 151 of the Law of 17 December 2010 (consolidated version) relating to undertakings for collective investment
Version:
11 July 2025, based on the Law of 17 December 2010 (v20250117)
This document may be revised and reissued as its content evolves over time.
License:
Luxembourg Investment Fund ¦ Prospectus ¦ suggested wording for a “Financial Crime Risk Notice” © 2025 by concilio et labore GmbH is licensed under CC BY-SA 4.0
This license requires that reusers give credit to the creator. It allows reusers to distribute, remix, adapt, and build upon the material in any medium or format, even for commercial purposes. If others remix, adapt, or build upon the material, they must license the modified material under identical terms.
Disclaimer:
We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, currentness or completeness of the information contained in this document.

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Bastian Schwind-Wagner
Bastian Schwind-Wagner Bastian is a recognized expert in anti-money laundering (AML), countering the financing of terrorism (CFT), compliance, data protection, risk management, and whistleblowing. He has worked for fund management companies for more than 24 years, where he has held senior positions in these areas.
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