{"id":"circulars/cssf-18-683","title":"Circular CSSF 18/683","type":"circular","date":"2018-03-01","kind":"circular","html":"

Circular CSSF 18/683 is a CSSF circular, published 1 March 2018 and updated 5 July 2018. Subject: FATF statements concerning 1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies; 2) jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions; 3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory. It was repealed by Circular CSSF 18/694.

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Relevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Credit institutions, Data Reporting Service Providers (DRSPs), E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Mortgage credit intermediaries, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Payment institutions/electronic money institutions/AISPs, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.

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Main topic: Financial crime. Keywords: AML/CFT, Proliferation financing, Terrorist financing.

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Text

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In case of discrepancies between the French and the English text, the French text shall prevail. Luxembourg, 1 March 2018

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To all the persons and entities under the supervision of the CSSF

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Re:

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FATF statements concerning 1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies; 2) jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions; 3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory.

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Ladies and Gentlemen,

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The Financial Action Task Force (\"FATF\") Plenary of February 2018 issued statements on the following topics: 1) Jurisdictions whose anti-money laundering and combating the financing of terrorism (\"AML/CFT\") regime has substantial and strategic deficiencies and that are subject to an FATF call on its members and other jurisdictions to apply counter-measures The FATF maintains its position that the AML/CFT regime of the Democratic People's Republic of Korea (\"DPRK\") continues to have substantial and strategic deficiencies and maintains the application of counter-measures against the DPRK. Moreover, the FATF reiterates that the jurisdictions must take the necessary measures to close existing subsidiaries, branches or representative offices of DPRK banks, where applicable, within their respective territories.

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We therefore require you to continue taking into account the risks arising from the deficiencies of the AML/CFT regimes, including the fight against the financing of weapons of mass destruction proliferation of the DPRK and to give special attention to business relationships and

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transactions with this jurisdiction, including with companies and financial institutions from this jurisdiction and those acting on their behalf. We require you to apply, in these cases, enhanced due diligence and monitoring measures in order to avoid these business relationships being used to bypass or evade the application of enhanced measures and counter-measures. In this context, we also invite you to inform us in case of a correspondent banking relationship with a credit institution from the DPRK. Finally, we invite you to maintain enhanced mechanisms for reporting suspicious activity to the Financial Intelligence Unit (\"FIU\") of the State Prosecutor's office of the Tribunal d'Arrondissement de et à Luxembourg (Luxembourg District Court).

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  1. Jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies and its decision to seek technical assistance in the implementation of the FATF’s Action Plan. In light of Iran’s demonstration of its political commitment and the relevant steps it took in line with its Action Plan, the FATF decided in November 2017 to continue the suspension of counter-measures. Since November 2017, Iran has established a cash declaration regime and introduced draft amendments to its AML and CFT laws. However, Iran’s action plan has now expired with a majority of the action items remaining incomplete. Given that Iran has draft legislation currently before Parliament, the FATF decided at its plenary meeting of February 2018 to continue the suspension of countermeasures. The FATF urgently expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items in its Action Plan by completing and implementing the necessary AML/CFT reforms, in particular passing the necessary legislation.
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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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