Luxembourg's Commission de Surveillance du Secteur Financier (CSSF) has published a report on the risks of money laundering and terrorist financing.
In a report addressed to credit institutions, Capital Requirements Regulation (CRR) investment firms, payment institutions and e-money institutions (including Luxembourg branches of regulated entities having their head office in the EEA or in a third country), as well as other finance professionals, the CSSF has announced that it will continue as a prudential supervisor to act upon money laundering and terrorist financing risks that may have an impact on an institution’s safety. To this end, the CSSF will use any information obtained in its capacities as national prudential as well as anti-money laundering and counter-terrorism financing (AML/CFT) supervisor or through cooperation with foreign supervisors.
The CSSF has also reminded supervised entities’ management bodies and senior management of the enhanced legal framework put in place at the European level with the relevant provisions of AMLD5 and CRDV that further clarify the link between prudential supervision and AML/CFT supervision and require prudential supervisors to act on relevant information, as well as of the European Council Anti-Money Laundering Action plan adopted in December 2018 - the plan also aims for an enhanced and effective cooperation between prudential and AML/CFT supervisors. With regard to CSSF supervisory processes, concerns about money laundering and terrorism financing, including concerns stemming from risks associated with individual institutions, will be considered.
The CSSF also reminded supervised entities to give due consideration to such risks at all times and to ensure that their governance and risk management arrangements are appropriate and enable them to identify, assess and manage all risks to which they are (or may be) exposed. Supervised entities should also ensure that the members of their management body and senior management are and remain of sufficiently good repute and possess sufficient knowledge, skills and experience to perform their duties and to prevent money laundering and terrorism financing.
