CRF ¦ Guidelines on the Freezing of Suspicious Transactions Ordered by the CRF

What Luxembourg’s FIU Guideline Means for Regulated Professionals

The Financial Intelligence Unit’s Guideline on the Freezing of Suspicious Transactions (Version 2.1.1, applicable from 01/04/2021 and updated 06/01/2026) clarifies how professionals subject to Luxembourg’s AML/CFT Law must behave when they know, suspect or have reasonable grounds to suspect that a transaction is linked to money laundering, a predicate offence or terrorist financing. The guideline reiterates that the freezing order is an exceptional investigatory tool intended to interrupt potentially illicit flows and to give the FIU time to analyse and, where necessary, to pass information on to judicial authorities. It is not a substitute for criminal proceedings and does not determine criminal guilt or legality of transactions.

Which transactions can be frozen

The guideline adopts a broad definition of “transaction”. A freezing order can cover any operation executed in the framework of a business relationship: payments and account transfers, access to safety-deposit boxes, redemption of life insurance policies, registrations of investors in funds or sub-funds, operations concerning virtual asset wallets, and similar acts. The FIU can issue either a comprehensive freeze affecting all transactions on a business relationship or a targeted freeze limited to specific transactions identified in the order. The measure’s objective is to prevent dissipation of assets while analysis or subsequent judicial action takes place.

When a freezing order may be issued and what professionals must do first

A freezing order can be issued by the FIU at any time. Professionals must refrain from carrying out transactions they know, suspect or have reasonable grounds to suspect are related to money laundering, associated predicate offences or terrorist financing until they have informed the FIU – either by filing a suspicious transaction report via goAML or by responding to an FIU information request. Once a suspicious transaction report or an FIU information request has been filed and the system generates an acknowledgement of receipt in goAML, the professional may, at their own risk, execute the reported transactions and other non-suspicious transactions unless and until a freezing order is received. This timing rule is critical: the FIU may act promptly, including by telephone in emergencies, and later confirm the order in writing.

Bastian Schwind-Wagner _Follow

"The Financial Intelligence Unit’s guideline on freezing suspicious transactions clarifies the obligations of professionals under Luxembourg’s AML/CFT framework and emphasizes that freezing orders are an exceptional tool to prevent asset dissipation during investigations. Professionals must promptly report suspicions via goAML and comply with any freeze notifications while preserving the confidentiality of suspicious activity reports.

Clear internal procedures, staff training and documented risk assessments are essential to balance compliance with business continuity. When in doubt about a transaction, professionals should escalate internally and file a report rather than seek FIU authorisation."

Notification and form of freezing orders

In emergencies the FIU will notify the professional by phone and send written confirmation within three days. Notifications are delivered via the goAML message board for registered users; otherwise by email if the FIU has that contact, or by regular mail. The written notification will specify whether the freeze is global for the business relationship or limited to particular transactions.

The FIU does not authorise transactions

The FIU will not grant authorisations to execute specific transactions and does not advise on their legality or suitability. Executing a transaction remains the sole responsibility of the professional. If a transaction causes discomfort or doubt, the professional must assess it in the light of normal business practices and their knowledge of the client. Persistent suspicion must be reported to the FIU rather than seeking an authorisation from it.

Subsequent transactions and reporting duties

Professionals are not required to notify the FIU of subsequent transactions that are not suspicious. If later transactions give rise to suspicion, they must be reported promptly via a new suspicious transaction report.

Effects of a freezing order on transactions and business relationships

A freezing order suspends the transactions specified in the order. If the order is partial, the professional is obliged to suspend only the transactions identified while remaining free, under their responsibility, to carry out other operations. While a freezing order is active, the business relationship must not be terminated because doing so could undermine the freeze’s effectiveness. There is no legislative obligation to terminate the relationship after the freezing order is lifted.

Communicating with the client

Informing a client that a freezing order exists is prohibited unless the FIU has expressly authorised prior disclosure. Many FIU-issued freezing orders do authorise professionals to inform clients about the non-execution of a transaction and the client’s right to challenge the order under article 9-3 of the AML/CFT Law – typically when the client contacts the professional about a blocked operation. Professionals must never disclose the existence of a suspicious transaction report or an FIU information request; doing so can expose them to criminal sanctions. A client may, independently, contact the FIU in writing to obtain confirmation of measures taken.

Duration, withdrawal and appeal

Since amendments introduced by the Law of 10 August 2018, freezing orders are not limited to a fixed time period. The FIU may withdraw a freezing order, in whole or in part, at any time if circumstances no longer justify it; upon notification of withdrawal, a professional is free, under their own responsibility, to execute previously frozen transactions. A person with an interest in the property affected and the professional concerned may challenge a freezing order before the Chambre du Conseil of the Luxembourg District Court as set out in article 9-3 of the AML/CFT Law.

The statute prescribes rapid procedural steps:

• the request is communicated within 24 hours upon its receipt by the registry (greffe) of the Chambre du Conseil to the FIU and the State prosecutor;
• the FIU must file a written, reasoned report within five days;
• the court may hear oral observations and will rule after considering the FIU report, any oral observations and submissions from the State prosecutor and the requester.

That order can be appealed under the criminal procedure provisions referenced in the law.

Practical implications for regulated professionals

Professionals must maintain robust internal processes to identify and escalate suspicious transactions promptly and to file accurate and timely suspicious transaction reports through goAML. They must ensure staff understand that a report’s acknowledgement does not preclude the FIU from issuing a freezing order subsequently. Clear internal protocols should be in place for handling notifications from the FIU, for complying with partial or full freezes and for preserving confidentiality so as not to disclose the filing of reports or information requests. When uncertain, professionals should rely on documented risk assessments and internal compliance escalation rather than contacting the FIU for transaction authorisation.

Conclusion

The FIU’s guideline underscores the FIU’s authority to use freezing orders as an effective investigative measure and delineates the duties and limits of professionals governed by Luxembourg’s AML/CFT regime. Professionals must act cautiously: promptly report suspicions, respect freezing orders when notified, avoid informing clients without FIU permission and document decisions taken under uncertainty. Robust compliance processes and well-trained staff are essential to meet these obligations while managing business continuity and legal risk.

Dive deeper

• CRF ¦ Guidelines on the freezing of suspicious transactions ordered by the CRF ¦ Link