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Circular CSSF 22/821 (as amended by Circulars CSSF 24/865, CSSF 23/845 and CSSF 25/897) (Updated)

AI Analysis

Executive Summary

**Circular CSSF 22/821** (as amended) fundamentally restructures how Luxembourg credit institutions report to the Commission de Surveillance du Secteur Financier (CSSF) by replacing the traditional Long Form Report with a digital **self-assessment questionnaire (SAQ)**, complemented by auditor-prepared reports. This shift represents a significant operational change that requires institutions to directly participate in prudential self-assessment while maintaining robust external audit oversight, making it essential for compliance and operational teams to understand new submission requirements and digital workflows.

What Changed

  • The circular introduces a three-component reporting framework that fundamentally alters the compliance landscape:
  • Self-Assessment Questionnaire (SAQ): A digital, annually-completed questionnaire that institutions must prepare directly, covering domains within CSSF and ECB prudential supervision competence
  • Agreed Upon Procedures (AUP) Reports: Reports prepared by approved statutory auditors (réviseurs d'entreprises agréés) on specific compliance areas
  • Separate REA Report on Financial Instruments Protection: A dedicated auditor assessment on safeguarding of client financial instruments Scope of SAQ Coverage: The questionnaire addresses prudential supervision matters including governance, risk mana

Suggested Considerations

  • *For Credit Institutions:
  • *Establish SAQ Governance: Designate authorized management responsible for reviewing and electronically signing the SAQ before submission; ensure accuracy and true-and-fair representation of information
  • *Data Preparation: Align SAQ responses with prudential reporting figures (FINREP/COREP/LAREX) under IFRS as of financial year closure
  • *Digital System Access: Obtain access credentials to the CSSF digital solution and familiarize compliance teams with the platform interface and submission workflow
  • *Module Completion: Complete all applicable SAQ modules as configured in the CSSF digital solution; note that module applicability and exemptions are institution-specific and recorded directly in the system
  • *Timeline Compliance: Submit SAQ within three months of financial year closure; coordinate with external auditors to ensure REA reports are submitted within five months

Key Dates

25 October 2022
- Circular CSSF 22/821 issued
23 December 2022
- Initial publication date (updated 15 November 2023)
31 December 2022
- Circular enters into application
Three months before financial year closure
- SAQ becomes accessible through CSSF digital solution
Three months after financial year closure DEADLINE
- Deadline for SAQ submission to CSSF
Five months after financial year closure DEADLINE
- Deadline for REA reports submission

Compliance Impact

Urgency: HIGH

Who is Affected

*Primary Scope:Luxembourg credit institutions incorporated under Luxembourg lawLuxembourg branches of non-EU (third country) credit institutionsBoth significant and less significant supervised entities as defined under ECB Regulation 468/2014*Explicit Exclusion:Luxembourg branches of EU credit institutions are not subject to this circular*Secondary Stakeholders:Approved statutory auditors (réviseurs d'entreprises agréés) who must prepare AUP reports and conduct independent ML/FT assessments

AI-generated analysis. May contain errors or omissions — verify with the original CSSF source before acting. Full disclaimer.

Summary

Long Form ReportPractical rules concerning the self-assessment questionnaire to be submitted by institutionsMission and related reports of the statutory auditors (réviseurs d’entreprises agréés)

Relevant Firm Types

Bank
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