Financial Firms Must Be Vigilant Against Money Laundering and Terrorist Financing
New Regulation Issued by CSSF
Luxembourg, December 14 - The Commission de Surveillance du Secteur Financier (CSSF) has issued a new regulation aimed at preventing money laundering and terrorist financing activities in the Luxembourg financial sector.
Requirements for Financial Professionals
Financial professionals are required to have procedures in place to identify and verify customer identities. This includes:
- Opening an account before or during the completion of identity verification measures
- Completing the verification process at the earliest opportunity after the first contact with a customer
Additionally, financial professionals must also have procedures in place to identify and verify the identities of beneficial owners, including those who act on behalf of third parties. This includes:
- Identifying and verifying the identities of founders and beneficial owners when opening an account for a company in the process of incorporation
- Verifying the identities of individuals acting on behalf of third parties
Occasional Transactions with Identity Verification
The regulation allows for occasional transactions of over EUR 15,000 to be carried out without prior identity verification, but only if certain conditions are met. These conditions include:
- The transaction is not suspicious
- Sufficient measures are in place to prevent assets from being withdrawn before identification has been completed
Reporting Suspicious Activities
Financial professionals must report any suspicions of money laundering or terrorist financing activity to the relevant authorities. Failure to comply with these requirements can result in serious consequences, including fines and even criminal charges.
Urgent Call to Action
“We take the fight against money laundering and terrorist financing very seriously,” said a CSSF spokesperson. “We urge all financial professionals to be vigilant and to follow these regulations carefully to prevent such illegal activities from taking place.”
Effective Date and Scope
The regulation comes into effect on [date] and applies to all financial professionals operating in Luxembourg.
By following this new regulation, the Luxembourg financial sector can help prevent money laundering and terrorist financing activities, ensuring a safer and more secure environment for financial transactions.