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Luxembourg Regulator Outlines Powers and Responsibilities in Monitoring International Financial Sanctions

The Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator, has clarified its role in monitoring the implementation of international financial sanctions.

Key Responsibilities

According to the CSSF, it is responsible for ensuring effective monitoring of the implementation of these measures and taking necessary measures to that end. The regulator can:

  • Access any document or information
  • Conduct on-site inspections
  • Issue warnings or fines if a legal breach is identified

Ministry of Finance Involvement

The Ministry of Finance has been designated as competent for dealing with matters relating to the enforcement of financial restrictive measures on natural and legal persons, entities, and groups concerned. The ministry also has the power to exceptionally issue authorizations derogating from prohibitions and restrictive measures imposed.

Similarities to Anti-Money Laundering Law

The CSSF’s powers in supervising professionals under its remit for compliance with international financial sanctions are similar to those provided by the Law of 12 November 2004 regarding the fight against money laundering and terrorist financing. This includes the right to investigate, enforce, and sanction non-compliance.

Latest Developments and Frequently Asked Questions

The CSSF has also published a list of frequently asked questions (FAQs) on international financial sanctions, which provides further guidance on various aspects of the topic. Some of the FAQs cover topics such as:

  • The powers of the CSSF in monitoring international financial sanctions
  • Whether a consolidated list of persons and entities subject to sanctions exists
  • What professionals should do if they identify a suspicion of money laundering or terrorism financing

Luxembourg FIU’s Role

The Luxembourg FIU has also been designated as the competent authority for receiving notifications and reports on suspicions of money laundering and terrorist financing.

Conclusion

The CSSF’s role in monitoring international financial sanctions is crucial in ensuring compliance with these measures and preventing potential risks to the financial system. The regulator’s powers and responsibilities are outlined in detail, providing clarity and guidance for professionals operating in the sector.