Circular CSSF 20/738 is a CSSF circular, published 6 March 2020 and updated 9 July 2020. Subject: FATF statements concerning 1) high-risk jurisdictions on which enhanced due diligence and, where appropriate, counter-measures are imposed 2) jurisdictions under increased monitoring of the FATF. It was repealed by Circular CSSF 20/746.
\nRelevant 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, SICARs, SIFs, Specialised PFS, UCITS.
\nMain topic: Financial crime. Keywords: AML/CFT, Proliferation financing, Terrorist financing.
\nRepeals Circular CSSF 19/730.
\nIn case of discrepancies between the French and the English text, the French text shall prevail. Luxembourg, 6 March 2020
\nTo all the persons and entities under the supervision of the CSSF
\nRe:
\nFATF statements concerning 1) high-risk jurisdictions on which enhanced due diligence and, where appropriate, counter-measures are imposed 2) jurisdictions under increased monitoring of the FATF
\nLadies and Gentlemen,
\nThe Financial Action Task Force (“FATF”) Plenary of February 2020 published statements on the following topics: 1) High-risk jurisdictions on which enhanced due diligence and, where appropriate, counter-measures are imposed -
\nDemocratic People's Republic of Korea (“DPRK”)
\nThe FATF maintains its position that the AML/CFT regime of the 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
\ndestruction proliferation 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 ask you to inform us in case of a correspondent banking relationship with a credit institution from the DPRK. Finally, we ask you to maintain enhanced mechanisms for reporting suspicious activity to the Financial Intelligence Unit (“FIU”). -
\nIran
\nIn June 2016, Iran has made a political commitment to address its strategic AML/CFT deficiencies. The Action Plan set by the FATF has expired while the remaining deficiencies had not been fully addressed yet. The FATF required in its October 2019 Plenary meeting i) the implementation of increased supervision with respect to subsidiaries and branches of financial institutions based in Iran, ii) the application of enhanced control measures, including enhanced mechanisms for reporting suspicious transactions or systematic reporting of financial transactions, as well as iii) the increased external audit within financial groups with respect to their subsidiaries and branches located in Iran. Since Iran has not fully addressed the remaining deficiencies, the FATF requires henceforth the implementation of counter-measures that are effective and proportionate to the risks emanating from this jurisdiction. In particular, until Iran implements the measures required to address the deficiencies identified in the Action Plan, the FATF remains concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system. The FATF will assess the progress made by Iran and take appropriate measures by deciding, as the case may be, to reintroduce the suspension of counter-measures. Iran will remain on this list until the full Action Plan has been accomplished. We therefore require you to continue taking into account the risks arising from the strategic deficiencies of the AML/CFT regime of Iran 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.
\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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