Financial Crime World

Here is the article in Markdown format:

Luxembourg Financial Sanctions Checklist: A Must-Read for Professionals

=====================================

The Commission de Surveillance du Secteur Financier (CSSF) has published a Frequently Asked Questions (FAQ) document on March 17, 2022, to clarify the requirements for compliance with international financial sanctions. As the authority responsible for supervising professionals in the financial sector, the CSSF emphasizes that complying with the Law of December 19, 2020 on the implementation of restrictive measures in financial matters is crucial.

Key Requirements

  • Professionals must adhere to not only the 2020 Law but also the CSSF Regulation 12-02 on the fight against money laundering and terrorist financing as modified.
  • They must take into account the United Nations and European regulatory frameworks regarding financial restrictive measures that are directly applicable in Luxembourg.

Reporting Requirements

The CSSF has outlined specific requirements for reporting measures taken by professionals that involve formal restrictive measures in financial matters. These include:

  • Submitting a report to the Ministry of Finance via email (sanctions@fi.etat.lu) or post (Ministère des Finances, 3 Rue de la Congrégation, L-1352 Luxembourg), copying the CSSF at adm_jurcc@cssf.lu, without delay.

Definition of Restrictive Measures

The FAQ defines “restrictive measures in financial matters” as:

  • The prohibition or restriction of financial activities, provision of financial services, technical assistance, training, or advice in relation to a state, natural or legal person, entity, or group referred to in the 2020 law.
  • The freezing of funds, assets, or other economic resources owned or controlled by individuals, entities, or groups listed in the 2020 Law.

Informing the Luxembourg Financial Intelligence Unit (FIU)

The CSSF has also highlighted that professionals must inform the FIU via the goAML platform (https://justice.public.lu/fr/organisation-justice/crf/goaml.html) if they identify a suspicion of money laundering, terrorism financing, or an associated predicate offence related to a relationship subject to financial restrictive measures.

Additional Resources

A copy of the CSSF’s FAQ can be found on their website at https://www.cssf.lu/wp-content/uploads/FAQ_International_financial_sanctions.pdf. For further guidance, investors are advised to consult with our investment management team.