{"id":"circulars/cssf-23-843","title":"Circular CSSF 23/843","type":"circular","date":"2023-10-16","kind":"circular","html":"

Circular CSSF 23/843 is a CSSF circular, published 16 October 2023. Subject: Adoption of the guidelines, by the EBA, on money laundering and terrorist financing risk factors when providing access to financial services.

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Legal basis: Law of 12 November 2004 on anti-money laundering.

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Relevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Consumer protection, Credit institutions, Credit servicers, Crowdfunding service providers, 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, 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, Virtual asset service providers (VASPs).

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

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Text

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Circular CSSF 23/843 Adoption of the guidelines, by the EBA, on money laundering and terrorist financing risk factors when providing access to financial services

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Circular CSSF 23/843 Adoption of the guidelines, by the EBA, on money laundering and terrorist financing risk factors when providing access to financial services This circular shall apply to credit and financial institutions as defined in Article 1(3) and (3a) of Title I of Chapter 1 of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended.

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Luxembourg, 16 October 2023 Ladies and Gentlemen, The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the European Banking Authority (“EBA”) Guidelines on policies and controls for the effective management of money laundering and terrorist financing (ML/TF) risks when providing access to financial services (ref. EBA/GL/2023/04) (“Guidelines”), published on 31 March 2023. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level.

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  1. The Guidelines The Guidelines follow up on the EBA’s publication, in January 2022, of its Opinion on “de-risking” 1, which identified the main drivers of de-risking and the negative impact unwarranted de-risking can have on customers and access to financial services and the fight against financial crime, and on the European Commission’s request to the EBA to issue guidelines on the steps institutions should take to facilitate access to financial services by those categories of customers that the EBA’s analysis had highlighted as particularly vulnerable to unwarranted de-risking. This set of guidelines complements the EBA’s Guidelines on ML/TF risk factors (for the latest version, please refer to Circular CSSF 21/782 and Circular CSSF 23/842). The Guidelines specify further the policies, procedures and controls credit and financial institutions (“professionals”) should have in place to mitigate and effectively manage ML/TF risks in accordance with Article 8(3) of Directive (EU) 2015/849, including in situations where the provisions in Article 16 of Directive 2014/92/EU (Payment Accounts Directive), which introduces the right of individuals to open and maintain a payment account with basic features, apply. Thus, the Guidelines clarify the interaction between the provision of access to financial services and the professionals’ AML/CFT obligations. They set out i.a. the steps the professionals should take when considering whether to refuse or terminate a business relationship with a customer based on ML/TF risk or AML/CFT compliance grounds. For example, the Guidelines specify that the professionals should document any decision to refuse or terminate a business relationship.
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Opinion of the European Banking Authority on ‘de-risking’ – CSSF

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Finally, the Guidelines also address aspects relating to the complaint mechanism that the professionals should have put in place to ensure that customers can complain if they feel they have been treated unfairly. The Guidelines are annexed to this circular, but are also available on the EBA’s website under the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guideline s/2023/1054144/Guidelines%20on%20MLTF%20risk%20management%20and%20access%20to% 20financial%20services.pdf

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    Scope of application This circular shall apply to credit and financial institutions as defined in Article 1(3) and (3a) of Title I of Chapter 1 of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended.

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    Date of application The Guidelines are applicable as of 3 November 2023.

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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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