Overview
Luxembourg is a UN and EU member state and implements UN and EU sanctions.
UN and EU sanctions apply automatically pursuant to Article 4(2) of the Law of 19 December 2020.
Under Article 5 of the Law of 19 December 2020, Luxembourg retains the power to impose financial sanctions in addition to UN and EU sanctions by Grand-Ducal Regulation. This power has not yet been used.
National Competent Authorities
The Ministry of Finance is the national competent authority for financial sanctions and restrictive measures.
The Financial Intelligence Unit is responsible for receiving and analysing suspicious transaction reports.
The Control Office for Exports, Imports and Transit (OCEIT) of the Ministry of the Economy is the competent authority for export controls.
The Public Prosecutor’s Office and the National Police are jointly responsible for criminal sanctions enforcement. The Commission de Surveillance du Secteur Financier (Luxembourg’s financial services regulator) can impose financial penalties on companies for non-compliance with money laundering and terrorist financing regulations, which includes failures to take measures to prevent sanctions circumvention.
Legislation
Law of 19 December 2020 on the Implementation of Restrictive Measures in Financial Matters
Law of 13 January 2019 establishing a register of beneficial owners
Law of 27 June 2018 on export controls and restrictive measures
Law of 12 November 2004 on the fight against money laundering and terrorist financing
Grand Ducal Regulation of 14 November 2022
Grand Ducal Regulation of 15 February 2019
Sanctions Lists
EU sanctions are directly applicable in Luxembourg – EU Sanctions List.
Luxembourg also implements UN sanctions – UN Sanctions Lists.
These lists are also available on Luxembourg Ministry of Finance website.
Guidance
Best practices guide for the implementation of sanctions
International sanctions overview
CSSF International Sanctions and Reporting FAQs
CSSF Anti-Money Laundering and Terrorist Financing FAQs
Licensing
The Ministry of Finance has authority to authorise derogations from sanctions if the relevant criteria in the original EU or Grand-Ducal sanctions instrument are met. Requests and queries regarding exemptions and delisting should be sent to the following address:
Ministry of Finance,
Directorate of multilateral Affairs, Development and Compliance,
3 Rue de la Congrégation
L-2931
Luxembourg
Email: sanctions@fi.etat.lu
Forms for applications to transfer frozen funds are available in English and French.
Enforcement
Failure to comply with sanctions is punishable by imprisonment for up to 5 years and a fine of up to €5,000,000, per Article 10 of the Law of 19 December 2020. The fine can be increased where the offence has led to significant financial gain.
Failure to provide documents relating to export control is punishable by a prohibition on business activities for up to 6 months or a fine of up to €25,000.
Exporting dual-use items without authorisation is a crime incurring a prison sentence of between 5 and 10 years and a fine of between €25,000 and €1,000,000.
Failure to register with OCEIT or provide OCEIT with information related to the use of an EU licence prior to using an EU licence is punishable by a prison sentence of up to 3 years and a fine of between €5,000 and €50,000.
Reporting
Sanctions
EU reporting requirements apply in Luxembourg. These obligations are set out in Council Regulations and typically require natural and legal persons, entities and bodies to supply “any information which would facilitate the implementation [of sanctions]… to the competent authority of the Member State where they are resident or located.” See our EU Reporting page for more information.
Under Article 6(1) of the Law of 19 December 2020, individuals and businesses must report any execution of restrictive measures against a designated person or entity to the Ministry of Finance, which can be contacted at the following address:
Ministère des Finances,
3 Rue de la Congrégation,
L-1352 Luxembourg
Email: sanctions@fi.etat.lu
A copy of the above communication should also be sent to the Commission de Surveillance du Secteur Financier by emailing adm_jurcc@cssf.lu.
Reports on asset freezing should be made using this form.
Suspicious transactions
Under Article 5(1)(a) of the Law of 12 November 2004, businesses must report transactions to the Financial Intelligence Unit (FIU) where they have reasonable grounds to suspect that money laundering or terrorist financing is or has been occurring.
To file a report with the FIU, the business must register on the goAML website and appoint a compliance officer. After the account has been verified, forms will become available to report the transactions. Guidance can be found here.
Export controls
Exporters using a general export authorisation for dual-use items under Regulation (EU) 2021/821 must notify the Control Office for Exports, Imports and Transit (OCEIT) within 30 days of first use.
Exporters must also provide OCEIT with information on exports made using an EU export authorisation or global authorisation annually by 31 January.
Export controls
EU export controls apply in Luxembourg. The national competent authority for issuing export control is the Control Office for Exports, Imports and Transit (OCEIT).
Exporters can use individual or general authorisations for exports. In both cases, the exporter must notify OCEIT.
Exporters seeking an individual or global authorisation should apply using OCEIT’s online service. The application should include:
- a letter explaining the transaction
- an end-use certificate
- an invoice or sales agreement
- a recent extract from the business and commerce register (RCS).
Exporters using general transfer authorisations EU001-008 contained in Annex 17 of Regulation (EU) 2021/821 should also use OCEIT’s online service. The application should include a letter explaining the transaction and a recent extract from the business and commerce register (RCS).
Businesses seeking to import or transfer dual-use goods may also need to register with OCEIT in certain circumstances.
OCEIT guidance can be found here.
The Grand-Ducal Regulation of 14 December 2018 contains further information about the impact of sanctions on export controls.
