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On May 12, 2026, the Commission de Surveillance du Secteur Financier (CSSF) announced the publication of the law of May 5, 2026, which transposes EU Directive 2024/1619 (Capital Requirements Directive VI or CRD VI) and EU Directive 2024/2994 into Luxembourg law. The law modifies the Luxembourg Financial Sector Law (LSF) of April 5, 1993, and was published in the Official Journal (Mémorial A no. 227) on May 6, 2026. CRD VI strengthens internal governance requirements for credit institutions, introduces new environmental, social and governance (ESG) risk management obligations, and establishes enhanced prudential powers for supervisory authorities over significant transactions such as mergers and asset transfers. The law also introduces a harmonised prudential framework for third-country branches and reinforces the sanctions and administrative measures regime. Directive 2024/2994 addresses concentration risk arising from central counterparty exposures and central counterparty risk on centrally cleared derivatives transactions. The CSSF emphasises that internal governance procedures, particularly the fit and proper (FAP) assessment criteria for management bodies and key position holders, have been strengthened. The existing CSSF Circular 12/552 on internal administration, governance and risk management will be updated following publication of revised European Banking Authority (EBA) guidelines on internal governance, expected by the end of Q3 2026. Until the revised circular is published, the current version remains applicable except for provisions directly modified by the law. A transitional period applies to third-country branch provisions and third-country banking services regimes, effective from January 11, 2027. Credit institutions and third-country branches should consult CSSF publications regularly for updates. Supervised entities may contact their supervision teams or banque@cssf.lu for additional guidance.