The CSSF and the FIU are responsible for implementing the country's AML framework. As part of the EEA, Luxembourg must comply with the EU’s AML directives.
In 2018, the CSSF released a guidance on AML compliance for CASPs. The guidance instructed CASPs to register with the CSSF and implement appropriate AML procedures. Following the 2018 guidance, the country decided to strengthen its AML framework further by implementing the EU’s Fifth Money Laundering Directive (5MLD).
Additionally, Luxembourg is obliged to adhere to its own rulings along with the Markets in Crypto Assets Regulation (MiCA).
Please note this text has been prepared in line with the Transfer of Funds Regulation and its requirements for EEA members.
What is the scope of the Travel Rule in Luxembourg?
In line with the TFR, the Travel Rule will apply to the “transfers of funds, in any currency, or crypto assets, which are sent or received by a payment service provider, a crypto-asset service provider, or an intermediary service provider (brokers and custodians) established in the European Union.” (TFR CHAPTER I, Article 1)
Read about the EU Travel Rule in detail.
Who is the supervisory body for CASPs in Luxembourg?
The Commission de Surveillance du Secteur Financier (CSSF)
Financial Intelligence Unit (FIU).
What is the Travel Rule threshold in Luxembourg?
EUR 0
What are FIU's requirements for Travel Rule information to be exchanged?
In line with the TFR, for all transfers, the originating CASP must communicate the following information with each crypto transfer before or simultaneously with the transfer:
- originator's name;
- originator's distributed ledger address;
- originator's crypto asset account number;
- originator's address, which must include the name of the country, official personal document number and customer identification number, or alternatively date and place of birth;
- originator's LEI (where applicable, or an equivalent official identifier).
- beneficiary's name;
- beneficiary's distributed ledger address;
- beneficiary's crypto asset account number;
- beneficiary's LEI (where applicable, or an equivalent official identifier).
Does Luxembourg's Travel Rule apply to self-hosted wallets?
Like all jurisdictions under the EEA, Luxembourg will include self-hosted wallets in its implementation of the Travel Rule (when a CASP is involved in the transaction).
In other words, transfers to and from self-hosted wallets involving a CASP must be accompanied by the Travel Rule required information on the transfer’s originator and beneficiary.
Moreover, self-hosted wallet ownership must be proved when a wallet sends or receives transactions of more than EUR 1000 and in instances of suspected risk, fraud and the like.
When do you need to comply with Luxembourg's Travel Rule?
Now - the Travel Rule is live.
