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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 management, capital adequacy, liquidity, and anti-money laundering/counter-terrorist financi

What You Need To Do

  • *For Credit Institutions
  • *Establish SAQ Governance
  • *Data Preparation
  • *Digital System Access
  • *Module Completion
  • *Timeline Compliance

Key Dates

25 October 2022 - Circular CSSF 22/821 issued
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 for SAQ submission to CSSF DEADLINE
Five months after financial year closure - Deadline for REA reports submission DEADLINE
23 December 2022 - Initial publication date (updated 15 November 2023)

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

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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