Financial Crime World

LUXEMBOURG - Financial Crime Risk Assessment Tools Now Available to Supervised Professionals

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Introduction

The Commission de Surveillance du Secteur Financier (CSSF) has released the complete version of Luxembourg’s national risk assessment of money laundering and terrorist financing, as required by the Financial Action Task Force (FATF). This 307-page report in English is now accessible to professionals subject to CSSF supervision.

Background

Luxembourg was mandated by the FATF to identify, assess, and understand its risks related to money laundering and terrorist financing. A summary report of the national risk assessment was published by the Ministry of Finance in December 2018, but the full document has only now been made available for professionals.

Key Points from the Full Report

  • The complete report reflects the situation as it stood at December 31, 2017.
  • It does not take into account any legislative or regulatory changes implemented since then.
  • The document is considered confidential and is intended primarily for directors, compliance officers, and risk managers of supervised entities.

Accessing the Report

Interested professionals can access the report by submitting a request to the CSSF via email. They must provide certain information including their name, function, and professional email address. Additionally, they must commit to maintaining confidentiality and only sharing the report with authorized personnel within their entity.

Next Steps

In line with the conclusions of the national risk assessment, the CSSF will publish separate reports on high-risk sub-sectors in the coming months. The first two reports will focus on private banking and collective investment, respectively, while a third report will examine the risks associated with specialized professionals in the financial sector.

Planned Assessments

Next year, the CSSF plans to assess the risks present in payment institutions and electronic money institutions, particularly those that use agents. This move reflects the growing importance of these sectors in Luxembourg’s financial landscape and the need for effective risk management strategies.