The Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has published a new FAQ on December 13, 2024, addressing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations related to asset due diligence. This document, which interprets CSSF Regulation No. 12-02, provides essential guidance to professionals in the financial sector. 

The CSSF highlights that financial professionals bear ultimate responsibility for assessing money laundering and terrorist financing risks associated with their activities. They must implement suitable measures to address these risks in line with regulatory requirements. 

Simplified due diligence for regulated market securities 

Securities traded on regulated markets are considered to pose lower AML/CFT risks. As such, the CSSF requires professionals to demonstrate, if requested, that these securities are admitted to such markets. This clarification simplifies compliance for firms managing these assets. 

Risk assessments for non-traded assets 

For assets not traded on a regulated market, an initial risk assessment will determine the necessary scope of due diligence. Reassessment may not be required annually if no significant risk changes occur. This ensures a balanced and risk-based approach to AML/CFT compliance. 

This FAQ represents a significant step forward in the Luxembourg’s AML/CFT framework. By addressing practical challenges and reducing ambiguity, the CSSF enables professionals to focus on effectively managing risks. The clarifications also streamline compliance for certain asset classes, particularly those with reduced ML/TF exposure. These measures align with international standards. 

The full FAQ can be accessed directly on the CSSF website : FAQ on AML Assets Due Diligence 

Don’t hesitate to contact our investment management should you need our assistance regarding your AML_CFT process.