Circular CSSF 18/701 is a CSSF circular, published 24 October 2018 and updated 1 March 2019. 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 It was repealed by Circular CSSF 19/711.
\nRelevant for: AIFMs, Credit institutions, E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.
\nMain topic: Financial crime. Keywords: AML/CFT, Proliferation financing, Terrorist financing.
\nRepeals Circular CSSF 18/694.
\nIn case of discrepancies between the French and the English text, the French text shall prevail.
\nLuxembourg, 24 October 2018
\nTo all the persons and entities under the supervision of the CSSF
\nRe:
\nFATF 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
\nLadies and Gentlemen,
\nThe Financial Action Task Force (“FATF”) Plenary of October 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. 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 regime, of the DPRK and to give special attention to business Circular CSSF 18/701
\nrelationships and 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). 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 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 June 2018 to continue the suspension of counter-measures. In December 2017, Iran established a cash declaration regime and, in June 2018, it enacted amendments to its AML/CFT regime. However, Iran’s Action Plan has expired although a majority of the remaining deficiencies had not been addressed yet. The FATF decided in its October 2018 Plenary meeting to continue the suspension of counter-measures. The FATF urges Iran to proceed swiftly in the reform path to ensure full and accurate implementation of the Action Plan, addressing all remaining AML/CFT deficiencies, in particular by bringing into force the necessary legislation.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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