Annual CSSF AML Survey due next month

Since 2018, the Luxembourg financial regulator (La Commission de Surveillance du Secteur Financier or CSSF) has conducted an annual cross-sector AML/CTF online survey as part of its implemented Anti-money laundering and counter-terrorist financing (AML/CTF) risk-based supervision approach.

The survey’s purpose is to collect standardised key information concerning money laundering and terrorist financing (ML/TF) risks to which professionals under its supervision are exposed. Based on the results of these surveys, the CSSF formulates measures to mitigate related risks and implements targeted financial sanction measures.

The CSSF announced in a recent communication that its 2020 survey will be launched on 15 February 2021 - relevant entities must submit their responses to the survey questions through the CSSF eDesk portal by 15 March 2021.

The entities that must fill out the survey include credit institutions, investment firms, specialised professionals of the financial sector (PSF), payment institutions and electronic money institutions, as well as Investment Fund Managers (IFMs) including UCITS management companies, AIFMs (including registered AIFMs), self-managed UCITS, internally managed Alternative Investment Funds with a full AIFMD authorisation, and (regulated) investment funds which have not designated an IFM.

These are subject to the survey whether they are incorporated in Luxembourg or are Luxembourg branches of entities which have their registered office in an EU Member State or in a third country. However, IFMs which manage Luxembourg funds without having established a branch in Luxembourg are exempted.

The 2020 survey remains substantially unchanged compared with that for the previous year. However, some additional questions are likely to be added due to the 25 March 2020 amendment to the Luxembourg AML/CFT Law of 2004 (which implements the EU 5th AML Directive) – among other things, this has resulted in enhanced due diligence measures, most notably in relation to high-risk countries and further specifications clarifying the identification of beneficial owners. See our note on the implementation of the 5th AML Directive here.

The amendments to the 2004 AML/CFT Law have also resulted in an extension of the types of professionals subject to Luxembourg AML/CFT obligations. These now include, among others, real estate developers, exchange platforms for virtual currencies, rental brokers and art dealers, who now fall within the scope of the AML/CFT Law so must also complete the 2020 survey.

Initiating and submitting the self-assessment ML/TF risk survey on the CSSF eDesk portal will be the duty of either:

• the compliance officer in charge of the control of compliance with the professional obligations (RC); or
• the person responsible for compliance with the professional obligations (RR).

For definitions of these, see Article 1(1) of CSSF Regulation No.12-02.

It is important to note that, while it is possible to assign the completion of the survey to another entity employee or a third party within the CSSF eDesk portal, ultimately the responsibility of ensuring that the survey is adequately completed rests on the shoulders of the RC or the RR.

Logistically, the relevant professionals or their potential delegates will require an eDesk account. This, in turn requires a LuxTrust authentication to access and submit the 2020 survey to the CSSF.

For further details, instructions can be found in the ‘Authentication and user account management’ user guide in the dedicated section of the CSSF eDesk portal homepage, to which the CSSF refers in its communication.

Please get in touch with your usual Simmons & Simmons Luxembourg contact if you have any questions.