Circular CSSF 25/878 is a CSSF circular, published 7 April 2025 and updated 8 April 2025. Subject: Adoption of the revised EBA Guidelines on money laundering and terrorist financing risk factors – complement of Circulars CSSF 23/842 and 21/782.
\nLegal basis: Law of 6 February 2025 implementing MiCA, ELTIF 2 and the green bond regulation, Law of 16 July 2019 implementing the EuVECA, EuSEF and ELTIF regulations.
\nRelevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Credit institutions, Credit servicers, Crypto-Assets Service Providers (CASPs), 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).
\nMain topic: Financial crime. Keywords: AML/CFT.
\nCircular CSSF 25/878 Adoption of the revised EBA guidelines on money laundering and terrorist financing risk factors - complement of Circular CSSF 23/842 and Circular CSSF 21/782 To all credit and financial institutions, including all crypto-asset service providers, as further defined in section 2.
\nLuxembourg, 7 April 2025 Ladies and Gentlemen, The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, adopts the European Banking Authority (“EBA”) guidelines (ref. EBA/GL/2024/01, hereafter the “amending Guidelines”) amending the EBA Guidelines on customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing (“ML/TF”) risks associated with individual business relationships and occasional transactions (“Guidelines on ML/TF risk factors”, (EBA/GL/2021/02)) under Articles 17 and 18(4) of Directive (EU) 2015/849, published on 16 January 2024. Pursuant to the adoption of the Law of 6 February 2025, adding notably Chapters 4e and 4f into the Law of 16 July 2019 on the operationalisation of European regulations in the area of financial services and implementing Regulation (EU) 2023/1114 on markets in crypto-assets (“MiCAR”) and Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, the CSSF has integrated the amending Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level.
\nThe Guidelines These amending Guidelines complement the Guidelines on ML/TF risk factors by addressing the specific risks associated with crypto-assets and crypto-asset service providers (“CASPs”) and by providing for measures that CASPs and other credit and financial institutions should take to manage these risks. Key amendments thus include: 1. Incorporation of Specific Risk Factors: The updated Guidelines on ML/TF risk factors now include, in Title I, distinct risk factors pertaining to crypto-assets and CASPs. 2. Guidance for Credit and Financial Institutions: Title II of the updated Guidelines on ML/TF risk factors now offers detailed instructions for these institutions, focusing on ML/TF risks linked to clients providing crypto-asset services, particularly those neither regulated nor authorised under MiCAR. 3. Sector-Specific Guidance for CASPs: In Title II of the updated Guidelines on ML/TF risk factors, a new Guideline 21 provides CASPs with specific considerations for evaluating ML/TF risks in their business relationships. This encompasses risks associated with transactions involving for example unregulated entities, products with anonymity features and certain types of customers that may raise red flags.
\nGuidance on Mitigating Measures for CASPs: As for other sectorial guidelines, Title II of the updated Guidelines on ML/TF risk factors now also suggests various mitigating actions for CASPs to employ in both high and lower ML/TF risk scenarios. The amending Guidelines are annexed to this circular and are also available on the EBA’s website at: Guidelines on ML/TF risk factors | June 28, 2024 European Banking Authority (europa.eu)
\nScope of application This circular shall apply to credit and financial institutions as defined in Article 1(3) and (3a) of the Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (“the AML/CFT Law”), including in particular CASPs.
\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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