On 2 April 2025, the Parliament of the Grand Duchy of Luxembourg ("Luxembourg") passed Bill 8460 aimed at amending the Payment Services Law of 20091 and implementing the ICTr Regulation2 (the "Law").
This marks the final step in the implementation of the European framework on instant credit transfers in Luxembourg. The date of publication of the Law in the Luxembourg official journal will determine the date of its application.
It is important to note that the Law introduces a system of sanctions applicable to payment service providers which fail to fulfil their legal obligations with regard to instant credit transfers as provided for by the amended SEPA Regulation3. The Law lists obligations that are subject to administrative penalties and measures, including warnings, reprimands, injunctions to cease a breach and fines of between EUR 250 and EUR 250,000. Infringements of Article 5d of the amended SEPA Regulation relating to the service ensuring verification and screening of targeted financial restrictive measures, are subject to more severe fines, notably:
- in the case of a legal person, administrative fines of a maximum of at least 10% of its total annual net turnover in the preceding financial year; and
- in the case of a natural person, administrative fines of a maximum of at least EUR 5,000,000.
This regime represents a new development compared to the existing administrative sanction regime under the Payment Services Law of 2009 (set out in Article 46), which only permitted the imposition by the CSSF of an administrative fine ranging from EUR 125 to EUR 12,500 on individuals responsible for the administration or management of payment institutions and electronic money institutions in specific instances of breaches.
Footnotes
1 Law of 10 November 2009 on payment services, on the activity of electronic money institution and settlement finality in payment and securities settlement systems, as amended (the "Payment Services Law of 2009").
2 Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro (the "ICTr Regulation").
3 Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 (the "SEPA Regulation").
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
