Following its call asking Virtual Assets Service Providers (“VASPs”) active in Luxembourg to prepare for compliance published in January, the Luxembourg financial regulator (“CSSF”) has officially become the anti-money laundering and counter-terrorist financing (“AML/CFT”) supervisory authority thereof with the adoption of the laws implementing the 5th anti-money laundering directive on 25 March 2020 (the “March Laws”). Subsequently, it has published a new communication detailing the registration process set out under the March Laws.
Who is concerned?
The registration process is mandatory for any VASP, established or providing services in Luxembourg, and providing one or more of the following services, whether on their clients’ behalf or for their own account:
- exchange between virtual assets and fiat currencies, including the exchange between virtual currencies and fiat currencies;
- exchange between one or more forms of virtual assets;
- transfer of virtual assets;
- safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets, including custodian wallet services;
- participation in and provision of financial services related to an issuer’s offer and/or sale of virtual assets
How to register?
Entities already offering, as from 30 March 2020, any of the services described above shall:
- promptly notify the CSSF thereof by email;
- submit a registration file in order to be specifically registered as VASP as soon as possible and at the latest for 30 May 2020; and
- comply with the professional obligations and the conditions described in the law of 12 November 2004 relating to the fight against money laundering and terrorist financing, as amended (the “AML/CFT Law”), as amended by the March Laws, as from 30 March 2020.
Entities offering or intending to offer, as from 30 March 2020, any of the services described above shall:
- register, via the registration file, beforehand as a VASP; and
- comply with the professional obligations and the conditions described in the AML/CFT Law, as amended by the March Laws.
Please note that entities already licensed/registered by a competent authority and in particular licensed financial institutions are also required to register.
The registration file can be found here: http://www.cssf.lu/en/supervision/fintechvirtual-assets/. The registration is effective upon inclusion of the applicant in the CSSF register.