Luxembourg Reinforces International Sanctions Enforcement with New Checklist

Luxembourg has recently strengthened its international sanctions enforcement regime through a series of amendments to its laws and regulations. The country’s financial authorities have introduced a new checklist to help entities comply with EU restrictive measures in financial matters, commonly referred to as “sanctions”.

Monitoring Committee Established

The Sanctions Law was amended by a law passed on July 20, 2022, which sets up a monitoring committee responsible for monitoring the implementation of sanctions and developing related national policies. The committee consists of representatives from various government agencies, including:

Ministry of Finance
Ministry of Foreign and European Affairs
Ministry of Justice
CSSF (Commission de Surveillance du Secteur Financier)
CAA (Commissariat aux assurances)
AED (Administration de l’Enregistrement, des Domaines et de la TVA)
FIU (Financial Intelligence Unit)

Enhanced Powers for FIU

The FIU has been granted additional powers to receive suspicious transaction and activity reports related to suspected violations of the Sanctions Law. This move aims to strengthen Luxembourg’s legislative and regulatory framework for sanctions enforcement, including asset freezing.

Entities are now required to notify the FIU immediately if they suspect or have reasonable grounds to believe that a breach of sanctions has occurred or is ongoing.

Clarification on Enforcement

The Grand-ducal Regulation of 1/2 clarifies the Sanctions Law, stating that both:

The enforcement of sanctions
Informing the Ministry of Finance thereof

must be done without delay. Additionally, enforcement of sanctions does not require prior notification.

Entities can find more information on the Sanctions Law and international sanctions through the Luxembourg Ministry of Finance’s dedicated webpages, which include best practice guides and forms. The CSSF and European Commission also provide comprehensive resources on EU regulations and affiliated texts.

Additional Resources

For further guidance or to stay updated on the latest sanctions developments at the EU level, entities can visit ELVINGER HOSS PRUSSEN website.