AML/CFT
FAQ on AML/CFT asset due diligence obligations in accordance with CSSF Regulation No 12-02
On 13 December 2024, the CSSF released the FAQ on AML/CFT asset due diligence obligations in accordance with CSSF Regulation No 12-02. In this FAQ, the CSSF emphasises that it is the responsibility of professionals to conduct money laundering and terrorist financing (“ML/TF”) risk assessments and to implement appropriate measures to mitigate identified risks. A risk-based approach must therefore be followed, tailored to the specific threats and vulnerabilities associated with the assets under managements.
Typically, securities listed on regulated markets are deemed to cause less ML/TF risks due to existing market disclosures and controls. For other assets not admitted to trading on a regulated market, professionals must perform an initial risk assessment. Depending on the risk scoring, the more thorough the due diligence will have to be. Additionally, professionals are not required to renew the annual risk assessments for assets not admitted to trading on a regulated market if no significant changes in the assets or the ML/TF risks have occurred.