Luxembourg Takes Aim at Money Laundering Typologies

Luxembourg has implemented strict measures to combat money laundering and terrorist financing in the country. As part of its efforts, the Grand Duchy has defined money laundering as an offense that involves knowingly facilitating the misleading justification of the origin of criminal funds.

What is Money Laundering?

Money Laundering: A Deliberate Attempt to Conceal Criminal Activity

Money laundering is a deliberate attempt to conceal the true source of funds obtained through illicit means. The offense includes knowingly participating in transactions such as investments, dissimulation, disguise, transfer or conversion of property constituting the object or indirect proceeds of a predicate offense.

Predicate Offenses: A Key Component of Money Laundering

Predicate offenses are crimes that generate the funds to be laundered. These include:

• Illicit trafficking of narcotic drugs
• Acts of terrorism or terrorist financing
• Corruption
• Weapons trafficking
• Other serious offenses punishable by a minimum term of imprisonment of at least six months

Terrorist Financing: A Serious Threat to National Security

Terrorist financing is defined as the unlawful and wilful provision of funds, assets or goods with the intention that they should be used to carry out an act of terrorism. Acts of terrorism and terrorist financing are autonomous offenses punishable by imprisonment and/or a fine.

Luxembourg’s Strategy to Combat Money Laundering

To prevent money laundering, Luxembourg has implemented various measures, including:

• Identifying customers (including beneficial owners): Financial institutions must identify their customers and understand the nature of their business.
• Performing continued monitoring (on customers and transactions): Ongoing monitoring of customer activity and transactions is essential to detect potential money laundering activities.
• Keeping appropriate records: Financial institutions must maintain accurate and detailed records of all transactions.
• Establishing internal procedures to train staff members to recognize money laundering and report any indications of money laundering to the competent authorities.

Fraud Mechanisms: A Threat to Investors

Investors may be directly exposed to various fraud mechanisms, including:

• IT frauds
• Pyramidal mechanisms or so-called CEO frauds If an investor suffers a prejudice through one of these mechanisms, they may lodge a complaint with the State Prosecutor or the investigating judge.

Complaining About Money Laundering: How to Do It

If you believe that you have been a victim of money laundering, you can lodge a complaint with:

• The State Prosecutor at the Tribunal d’arrondissement (District Court) of Luxembourg
• The State Prosecutor at the Tribunal d’arrondissement (District Court) of Diekirch
• The investigating judge (juge d’instruction) with the Tribunal d’arrondissement (District Court) of Luxembourg or Diekirch

For further information, please visit the website www.justice.public.lu.