Tag: Luxembourg

Luxembourg’s financial services regulator, the CSSF, has issued a fine against Rakuten Bank SA for various compliance failings including sanctions and AML.

One of the failings identified was “accumulated significant and recurring delays in processing alerts relating to customer screening against list of persons subject to restrictive measures in financial matters”. The Notice identified a particular example of a customer subject to anti-terrorism sanctions where the review of the alert took more than six months.

Another failing identified was a failure to “apply ‘without delay’ potential restrictive measures in financial matters”.

Luxembourg’s financial services regulator, the CSSF, has issued a fine of €214,000 against Alipay (Europe) Limited SA for various AML and other compliance failings.

Amongst these was a failure promptly deal with “financial sanctions related alerts”, with the CSSF noting that Alipay “would not have been in a position to apply restrictive measures in financial matters without delay”.

Luxembourg’s financial services regulator, the CSSF, has today announced a fine of €40,000 on Dock Financial S.A.

The fines relates to AML and sanctions compliance failings identified as part of an on-site inspection between December 2021 and November 2022.

In relation to sanctions, the CSSF has found that:

“A substantial part of the EMI’s client portfolio was not subject to name screening controls on a daily basis, over a substantial period of time, thus constituting a failure to comply with the obligation to detect persons, entities and groups subject to restrictive measures in financial matters without delay so that the necessary restrictive measures can be applied to them in line with all United Nations Security Council resolutions, acts adopted by the European Union (resolutions and acts directly applicable in Luxembourg) and national regulations“.

This was identified as a breach of CSSF regulations requiring detection of designated persons.

The Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg has imposed fines of €109,000 and €17,200 for compliance failings on abrdn Investments Luxembourg S.A.

The fine of €17,200 related to failings in relation to AML/CFT, and included in these failings was failure to “perform initial name screenings controls against international and European financial sanctions lists”.

The CSSF had conducted on-site inspections in 2020.

The Luxembourg financial services regulator, the CSSF, has today published a report of an administrative penalty imposed on Fuchs & Associés Finance SA.

The fine was €785,000.

Some of the compliance failings relate to AML and KYC more generally, and some were specific to sanctions. The sanctions-specific failings were:

• • • “name screening controls aiming at detecting persons subject to prohibitions and restrictive measures in financial matters had not been carried out for all clients of the trading desk, as their names were not
      included in the databases used to feed the name screening systems”;
    • “the name screening tools were updated only once a week, and
      no additional controls were in place, particularly when new European and United Nations lists are issued”; and
    • “the absence of a complete and exhaustive client database”.

The Luxembourg financial services regulator, the CSSF, has announced today the imposition of a fine of €1.56 million on Banque Degroof Petercam Luxembourg SA.

The fine followed an inspection which started in September 2019, and relates to compliance failings in the context of AML and terrorist financing, and a failure to adequately screen clients for inclusion on EU sanctions lists.

The CSSF noted that remedial steps have been taken by the bank since the inspection of 2019/2020.

The Luxembourg financial services regulator, the CSSF, has today imposed a a fine of €145,000 on Unzer Luxembourg SA for AML and sanctions compliance failings.

The penalty notice noted that the failings, including in sanctions screening, were identified as part of an on-site inspection in 2020 and 2021, and noted that the lack of a fine took into consideration the bank’s efforts at remediation.