Luxembourg’s Financial Institution Risk Assessment Tools Now Available to Professionals

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The Commission de Surveillance du Secteur Financier (CSSF) has announced that the complete version of Luxembourg’s national risk assessment of money laundering and terrorist financing is now available for financial professionals subject to its supervision. This comprehensive report provides a detailed understanding of the country’s risks in this area.

Background

According to FATF Recommendation 1, countries must identify, assess, and mitigate their money laundering and terrorist financing risks using a risk-based approach. Luxembourg has taken steps to comply with this recommendation by publishing a summary report of its national risk assessment in December 2018.

The Report

The complete report is now available for professionals who are required to implement their own risk assessments under Article 2-2 of the Law of 12 November 2004 on the fight against money laundering and terrorist financing. The document reflects the situation as of December 31, 2017, and does not take into account legislative, regulatory, or procedural changes made since then.

Intended Audience

The report is primarily intended for senior executives, compliance officers, and risk managers working in the financial sector.

Accessing the Report

Professionals interested in accessing the report must submit a request to the CSSF by email at nra@cssf.lu, providing specific information about themselves, including their name, function, and professional email address. They must also commit to maintaining confidentiality and using the document solely for its intended purpose.

Confidentiality

The CSSF will communicate the recipient’s email address to the Executive Secretariat of the Committee for the Prevention of Money Laundering and Terrorist Financing, which will send a secure link to download the report. The CSSF emphasizes the importance of confidentiality and encourages professionals to respect the strict confidentiality obligations outlined in the report.

Future Plans

Following the release of the national risk assessment, the CSSF will publish sector-specific reports on high-risk areas. Two such reports are expected before the end of the year, focusing on private banking and collective investment sectors. A third report is planned for early 2020, examining the risks faced by specialized professionals in the financial sector, including corporate domiciliation agents.

Additional Reports

The CSSF also plans to assess the risks present in payment institutions and electronic money institutions, particularly those that use agents.

Conclusion

By making this information available, the CSSF aims to support financial institutions in their efforts to mitigate money laundering and terrorist financing risks.