Financial Crime World

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CSSF Cracks Down on Money Laundering and Terrorist Financing in Financial Sector

Luxembourg - The Commission de Surveillance du Secteur Financier (CSSF) has reiterated its commitment to ensuring that financial sector professionals implement a risk-based approach to combat money laundering and terrorist financing.

Strengthened Supervisory Powers

The CSSF’s supervisory powers have been strengthened, enabling it to access documents and information necessary for the exercise of its duties. This includes summoning individuals or conducting on-site inspections. The authority may also impose administrative sanctions, including fines, warnings, and occupational prohibitions against non-compliant professionals.

Obligations of Financial Sector Professionals

Financial sector professionals are required to comply with professional obligations arising from AML/CTF texts, including:

  • Customer due diligence obligations
  • Adequate internal management requirements
  • Cooperation requirements with authorities

In addition, financial sector professionals must respond promptly to requests for information from competent AML/CTF authorities relating to information accompanying transfers of funds.

Customer Due Diligence

Financial sector professionals are required to apply customer due diligence measures when:

  • Establishing a business relationship
  • Carrying out occasional transactions above EUR 15,000 or more
  • In cases where there are suspicions of money laundering or terrorist financing

These measures include:

  • Identifying the customer, beneficial owner, and representative
  • Verifying their identity on the basis of documents, data, or information from a reliable and independent source
  • Obtaining the purpose and intended nature of the business relationship

Frequently Asked Questions

The CSSF has published frequently asked questions regarding the fight against money laundering and terrorist financing for individuals and investors. These questions cover topics such as:

  • The powers of the CSSF in the exercise of its duties with respect to AML/CTF
  • The obligations of financial sector professionals
  • Customer due diligence requirements

Conclusion

The CSSF’s efforts to combat money laundering and terrorist financing are crucial in maintaining the integrity of Luxembourg’s financial sector. Financial sector professionals must remain vigilant and compliant with AML/CTF regulations to prevent these criminal activities from undermining the stability of the financial system.