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Luxembourg’s Financial Watchdog Outlines Powers and Responsibilities in Enforcing International Sanctions

In a move to ensure effective monitoring of international financial sanctions, the Commission de Surveillance du Secteur Financier (CSSF) has outlined its powers and responsibilities in enforcing these measures.

Ministry of Finance’s Role

The Ministry of Finance has also been granted powers in relation to enforcing financial restrictive measures. It is responsible for dealing with matters directly related to the enforcement of these measures on natural and legal persons, entities, and groups concerned. Additionally, the ministry can exceptionally issue authorizations derogating from prohibitions and restrictive measures imposed if resolutions and acts referred to in Article 1 of Law No. 2020 allow such derogations.

CSSF’s Powers

In its supervision of professionals under its remit for compliance with international financial sanctions, the CSSF has powers similar to those provided by the Law of November 12, 2004 regarding the fight against money laundering and terrorist financing. These include:

  • Access to any document in any form
  • Requesting information from any person and summoning individuals subject to its supervisory power
  • Conducting on-site inspections or investigations
  • Seizing documents, electronic files, or other materials deemed necessary to ascertain the truth

If a legal breach is identified, the CSSF has the power to issue:

  • Warnings
  • Reprimands
  • Public statements
  • Administrative fines
  • Other measures

FAQs

To help clarify any doubts or concerns, the CSSF has released frequently asked questions on international financial sanctions. Some of the key questions addressed include:

  • What powers does the CSSF have in supervising professionals for compliance with international financial sanctions?
  • Does a consolidated list of persons and entities subject to international financial sanctions exist?
  • What should a professional do if they identify a suspicion of money laundering or terrorism financing, or an associated predicate offense?

Latest Developments

The CSSF has also provided information on the latest developments in relation to international financial sanctions. For more information, professionals can visit the CSSF’s website.

Contact Information

  • Commission de Surveillance du Secteur Financier (CSSF)