Circular CSSF 19/730 is a CSSF circular, published 6 November 2019 and updated 6 March 2020. Subject: FATF statements concerning 1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies; 2) jurisdictions for which i) increased supervision must be implemented with respect to subsidiaries and branches of financial institutions based in Iran, ii) enhanced control measures must be applied, including enhanced mechanisms for reporting suspicious transactions or systematic reporting of financial transactions, as well as iii) increased external audit must be required within financial groups with respect to their subsidiaries and branches located in Iran; 3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory. It was repealed by Circular CSSF 20/738.
\nRelevant for: AIFMs, Central Securities Depositories (CSDs), 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 19/722.
\nIn case of discrepancies between the French and the English text, the French text shall prevail.
\nLuxembourg, 6 November 2019
\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 for which i) increased supervision must be implemented with respect to subsidiaries and branches of financial institutions based in Iran, ii) enhanced control measures must be applied, including enhanced mechanisms for reporting suspicious transactions or systematic reporting of financial transactions, as well as iii) increased external audit must be required within financial groups with respect to their subsidiaries and branches located in Iran; 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 2019 published 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
\nmaintains 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 relationships 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”). 2) Jurisdictions for which i) increased supervision must be implemented with respect to subsidiaries and branches of financial institutions based in Iran, ii) enhanced control measures must be applied, including enhanced mechanisms for reporting suspicious transactions or systematic reporting of financial transactions, as well as iii) increased external audit must be required within financial groups with respect to their subsidiaries and branches located in Iran 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. Indeed, in November 2017, Iran established a cash declaration regime and, in August 2018 and January 2019, it enacted amendments to its AML/CFT regime. The FATF recognises the progress of these legislative efforts but will only consider fully enacted legislation. However, Iran’s Action Plan has expired while the remaining deficiencies had not been fully addressed yet.
\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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