CSSF approach with respect to AML/CTF

Within the framework of its statutory mission, the CSSF is in charge of ensuring that all the persons subject to its supervision, authorisation or registration comply with the professional AML/CTF obligations.

The CSSF ensures that professionals implement a risk-based approach in order to allocate the appropriate means and resources to the customers and products which represent higher risks.

Moreover, the CSSF ensures that persons maintaining relationships with organised crime, including, inter alia, those committing money laundering or terrorist financing offences, cannot take control, in any form whatsoever, over persons subject to its supervision.

Professionals are required to fully cooperate with the CSSF as well as the Financial Intelligence Unit (FIU) with respect to AML/CTF. The CSSF, in turn, cooperates closely with the FIU. These two authorities are authorised to exchange information necessary to perform their respective duties. Moreover, the CSSF can also exchange information with other AML/CTF competent authorities, on a national or on an international level.

The AML/CTF supervision (off-site and on-site supervision) by the CSSF is organised pursuant to the principles of a risk-based approach that takes into account the money laundering and terrorist financing risks to which the supervised entities and the sectors at large are exposed to.

Powers of the CSSF in the exercise of its duties with respect to AML/CTF

The CSSF has all the supervisory and investigatory powers provided for in the Law of 12 November 2004 on the fight against money laundering and terrorist financing (“AML/CTF Law”) and in various sectorial laws for the purpose of carrying out its duties. For instance, the CSSF is entitled to have access to any document it deems necessary and to obtain a copy thereof. It may also request information from any person subject to its supervision, notably by summoning this person or by carrying out on-site inspections.

Where a person subject to the AML/CTF supervision of the CSSF does not comply with the provisions relating to AML/CTF, the CSSF has a power of injunction against this person. If after expiry of the time limit set by the CSSF, the supervised person has not fixed the situation, the CSSF may follow up with an administrative sanction against this person.

Moreover, the CSSF has broad sanctioning powers. It may issue warnings, reprimands, administrative fines or occupational prohibitions against persons subject to its AML/CTF supervision. These sanctions will, generally, be made public by the CSSF.

Such administrative or prudential sanctions are without prejudice to the imposition of criminal sanctions (imprisonment and/or a fine) by criminal courts against professionals which deliberately violated the legal provisions which apply to them in this regard.

Financial sector professionals' obligations with respect to AML/CTF

Financial sector professionals shall, in any event, comply with the professional obligations arising from AML/CTF texts, and more specifically customer due diligence obligations, adequate internal management requirements and cooperation requirements with the authorities.

Furthermore, and where applicable, they must comply with the obligations arising from Regulation (EU) 2015/847 of 20 May 2015 on information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006, applicable as from 26 June 2017. In particular, financial sector professionals must respond, without delay, to any request for information from the competent AML/CTF authorities and relating to information accompanying transfers of funds.

Please refer to our FAQs on AML/CFT and to the respective applicable texts for further information on this topic.

Documentation

Laws, regulations and directives

Circulars

Other regulatory texts

Forms

Guidance

Publications

  • 04 May 2020 AML/CFT supervision in the Collective Investment Sector during the Covid-19 situation
    Communiqué
  • 21 April 2020 Money is not a victimless crime
    Video published by the FATF
    Studies and reports
  • 09 April 2020 Communiqué on virtual assets, virtual asset service providers and the related registration process
    Communiqué
  • 02 March 2020 FATF Business Bulletin on the FATF’s work regarding virtual assets
    Studies and reports
  • 01 March 2020 FATF Business Bulletin March 2020
    Studies and reports
  • 17 January 2020 The CSSF publishes Luxembourg’s first ML/FT risk analysis on the Collective Investment Sector
    Communiqué
  • 15 January 2020 Communiqué on virtual assets and virtual asset service providers
    Communiqué
  • 01 January 2020 ML/TF risk analysis – collective investments
    Studies and reports
  • 20 December 2019 The CSSF and the ABBL publish Luxembourg’s first ML/FT risk analysis of private banking
    Communiqué
  • 05 December 2019 AML/CFT Conference 3 December 2019 summary
    Communiqué
  • 01 December 2019 ML/TF risk analysis – private banking
    Studies and reports
  • 28 November 2019 Survey related to the fight against money laundering and terrorist financing
    Press release
  • 01 November 2019 FATF Business Bulletin November 2019
    Studies and reports
  • 23 October 2019 CSSF-IOSCO joint Seminar/Workshop on AML/CFT supervision for the Securities Sector
    Press release
  • 09 October 2019 Risk assessment of money laundering and terrorist financing (ML/TF)
    Communiqué
  • 04 October 2019 Conference – AML/CFT for specialised professionals of the financial sector
    Communiqué
  • 20 September 2019 Conference – AML/CFT for registered investment fund managers
    Communiqué
  • 01 September 2019 FATF Business Bulletin September 2019
    Studies and reports
  • 29 August 2019 Communication to supervised entities about the relevance of money laundering and terrorist financing risks in the prudential supervision
    Communiqué
  • 24 July 2019 2019 Supranational Report of the European Commission
    on money laundering and terrorist financing risks
    Studies and reports
  • 01 July 2019 FATF Business Bulletin July 2019
    Studies and reports
  • 23 May 2019 AML/CFT investment fund questionnaire SIF/UCI Part II/SICAR/ELTIF
    Communiqué
  • 01 May 2019 FATF Business Bulletin May 2019
    Studies and reports
  • 19 March 2019 Watch the deadline for answering the AML/CFT Questionnaires
    Communiqué
  • 01 March 2019 FATF Business Bulletin March 2019
    Studies and reports
  • 01 March 2019 Conference – AML/CFT in Luxembourg Fund Industry
    Press release
  • 12 February 2019 Survey related to the fight against money laundering and terrorist financing
    Press release
  • 20 December 2018 Luxembourg government press release of 20.12.2018
    Press release
  • 10 December 2018 National risk assessment of money laundering and terrorist financing
    Studies and reports
  • 01 December 2018 FATF Business Bulletin December 2018
    Studies and reports
  • 01 September 2018 FATF Business Bulletin September 2018
    Studies and reports
  • 01 August 2018 FATF Business Bulletin August 2018
    Studies and reports
  • 22 May 2018 AML/CFT Questionnaires – Press release 18/15
    Press release
  • 20 April 2018 Survey related to the fight against money laundering and terrorist financing
    Press release
  • 01 March 2018 FATF Business Bulletin March 2018
    Studies and reports
  • 20 December 2017 Panama Papers: results of the CSSF’s analysis and subsequent enforcement procedures
    Press release
  • 26 June 2017 2017 Supranational Report of the European Commission
    on money laundering and terrorist financing risks
    Studies and reports
  • 22 June 2017 The CSSF imposes an administrative sanction on the bank Edmond de Rothschild (Europe)
    Communiqué
  • 05 April 2016 Panama Papers
    Press release
  • 28 October 2015 EBA, EIOPA and ESMA consult on anti-money laundering and countering the financing of terrorism
    Press release
  • 06 March 2014 Luxembourg government press release of 06.03.2014
    Press release
  • 20 January 2014 Publication by the Basel Committee of the new recommendations on the sound management of risks related to money laundering and financing of terrorism
    Press release
  • 21 February 2012 FATF revision of the international standards on combating money laundering and financing of terrorism and of proliferation of weapons of mass destruction
    Press release
  • 07 March 2011 Prevention, detection and treatment of possible suspicious assets held with financial institutions
    Press release
Last update: 04 May 2020