Credit: CSSF / Clarence
On Monday 2 December 2024, the Commission de Surveillance du Secteur Financier (CSSF) and Clarence, Luxembourg's sovereign air-gapped cloud, announced the signing of a strategic agreement on artificial intelligence (AI).
Clarence's solution is expected to enable Luxembourg's financial regulator to "leverage and apply cutting-edge technologies to its sensitive data while ensuring confidentiality, complete control and full sovereignty". This agreement marks the beginning of an "ambitious project" to enhance the efficiency of the CSSF's internal processes while meeting current regulatory requirements.
Claude Marx, Director General of the CSSF, commented: "This partnership with Clarence is a significant step in the CSSF's digital transformation. It enables us to better process an increasing volume of data, refine risk analyses and generally increase the efficiency of our work. In the future, artificial intelligence will be key not only for the financial sector under the CSSF's supervision but also for the CSSF itself."
Jean-Pierre Faber, Director of CSSF Operations, added: "Accessing the Google platform and AI-related tools will enable the CSSF, both internally and externally, to enhance critical analyses in prudential supervision, as well as modernise its administrative practices and interactions with market players and international groups operating in Luxembourg, respectively."
The agreement has the support of LuxConnect, Clarence's principal shareholder, and Proximus Luxembourg, a strategic co-shareholder.
Paul Konsbruck, CEO of LuxConnect, emphasised: "This collaboration with the CSSF demonstrates the relevance and reliability of our solution. Clarence goes beyond providing a technological service; it embodies a vision of trust and sovereignty supported by the Luxembourg state, ensuring an unparalleled level of assurance for strategic institutions. We believe this example will set a new standard for the entire financial sector."
Gérard Hoffmann, CEO of Proximus Luxembourg, noted: "We are delighted by the CSSF's trust in this innovative air-gapped cloud solution, the result of a multi-year collaboration between LuxConnect and Proximus Luxembourg. We also value the technological partnership with Google Cloud, which allowed us to pioneer this solution in the Benelux market. Today marks a new chapter in the story of sovereign innovative platforms in Luxembourg, especially with this first prestigious client like the CSSF. This strategic investment, radiating from Luxembourg, demonstrates the Proximus Group's commitment to strengthening its role as a leader in sovereign technology solutions."
An internal CSSF task force has started identifying an initial list of pilot projects to be deployed in the first quarter of 2025. The goal is to integrate AI into critical processes to enhance performance, transparency and efficiency while improving interactions with the public and supervised entities.
To achieve this, Clarence will support CSSF staff with technical assistance and offer innovative tools and use cases based on Google's advanced technologies, ensuring "maximum security" of the CSSF's data. The CSSF will fully manage its own air-gapped cloud on dedicated infrastructure, "maintaining complete control" over its data.
"This partnership with the CSSF paves the way for responsible and efficient digital transformation now that Clarence is fully operational. We are honoured to contribute to the CSSF's evolution as a pioneer in AI and generative AI, and by extension, to this positive advancement for Luxembourg's financial sector," stated Pascal Rogiest, General Manager of Clarence. "Our collaboration with the CSSF is not just a technological project; it's a shared vision of the financial sector's future, where digital trust, fully sovereign cloud and artificial intelligence converge into a cohesive and secure whole within today's geopolitical context."
This partnership is expected to have a "significant impact" beyond Luxembourg.
