Administrative sanction of 11 September 2025
Executive Summary
The CSSF imposed a €10,000 administrative fine on 11 September 2025 against alternative investment fund manager (AIFM) Premium Capital Management for failing to submit its annual financial crime questionnaire by the 4 April 2025 deadline, breaching the cooperation obligation under Article 5(1) of Luxembourg's AML/CFT Law of 12 November 2004. This enforcement action underscores the CSSF's strict enforcement of AML reporting duties, signaling heightened scrutiny on timely supervisory cooperation amid ongoing AML risks in Luxembourg. Compliance teams should view this as a reminder of the low tolerance for even administrative lapses, with potential for escalated fines in repeat cases. #
What Changed
This is not a regulatory change but an enforcement precedent under existing rules: non-compliance with Article 5(1) of the AML/CFT Law, which mandates annual submission of a financial crime questionnaire ("Questionnaire") to the CSSF. The fine was calculated per Articles 8-4(1), 8-4(2)(f), and 8-4(3)(a), considering circumstances under Article 8-5(1). Publication followed Article 8-6(1) after a proportionality assessment, confirming no market stability risks. No new requirements were introduced; it reinforces the obligation for CSSF-supervised professionals (per Article 2-1(1)) to cooperate fully on AML/CFT matters. #
What You Need To Do
- Immediately review internal processes for annual Questionnaire submission, ensuring calendar invites and automated reminders for the 4 April deadline (covering prior year-end data)
- Conduct a gap analysis on AML/CFT cooperation obligations under Article 5(1), including response protocols to CSSF reminders or queries
- Update compliance calendars and train staff on escalation procedures; document all submissions with proof (e
- If late, proactively submit overdue items and request meetings if needed, as non-response forfeits mitigation opportunities
Key Dates
Compliance Impact
Urgency: Medium – This €10,000 fine for a straightforward reporting failure demonstrates CSSF's willingness to penalize non-cooperation swiftly, even without aggravating factors, but the amount is modest and targeted at administrative breaches. It matters as a warning shot in Luxembourg's AML landscape, where repeated failures could trigger higher fines (up to proportionality limits under Article
Who is Affected
Summary
Administrative sanction imposed on the alternative investment fund manager Premium Capital Management (“AIFM”)