Financial Crime World

Luxembourg’s Financial Watchdog Cracks Down on Sanctions Evasion

Strengthening Efforts Against Financial Crimes

The Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator, has outlined its powers and responsibilities in enforcing international financial sanctions to strengthen its efforts against financial crimes.

CSSF’s Powers and Responsibilities

According to the CSSF, it is responsible for monitoring the implementation of financial restrictive measures and taking necessary measures to ensure compliance. The agency also has the power to:

  • Investigate professionals who fail to comply with these measures
  • Enforce sanctions on non-compliant professionals
  • Issue warnings, reprimands, public statements, and administrative fines

Access to Documents and Information

The CSSF can access any documents, request information from individuals, and conduct on-site inspections to ensure compliance with sanctions.

Sanctions List

A consolidated list of individuals and entities subject to international financial sanctions exists, but details on how to access this list were not provided in the FAQ document.

Reporting Suspicious Activities

Financial sector professionals are required to:

  • Report any suspicions of money laundering or terrorism financing to the Luxembourg Financial Intelligence Unit (FIU) via the goAML platform
  • Inform the CSSF if a client is subject to international financial sanctions and identify a suspicion of money laundering or terrorism financing

Latest Developments

The CSSF has updated its FAQ document on AML/CT, which includes information on the latest developments related to international financial sanctions. However, specific details on these updates were not provided in the FAQ document.

Conclusion

The CSSF is committed to ensuring that financial professionals comply with international financial sanctions and report any suspicious activities. The agency’s powers and responsibilities are outlined in its recent FAQ document, which provides guidance on how to navigate these complex regulations.