Luxembourg Urged to Intensify Efforts Against Money Laundering Amid FATF Recommendations
The Financial Action Task Force (FATF) has released a report highlighting Luxembourg’s progress in combating money laundering and terrorist financing, while also emphasizing the need for further improvements.
Progress Made by Luxembourg
Since its last Mutual Evaluation report, Luxembourg has taken significant steps to enhance its national risk understanding of money laundering and terrorist financing. The country has demonstrated strong technical compliance with FATF standards.
Gaps Identified in Luxembourg’s Approach
However, the report indicates that more needs to be done to address money laundering risks in the financial sector. Luxembourg’s status as a major international financial hub, with significant cross-border flows and high-risk products and services, means it remains vulnerable to these threats.
- The report identifies gaps in Luxembourg’s approach to non-financial sectors.
- This may result in increased pressure from supervisors such as the AED, leading to:
- More onsite visits
- Assessments of governance and policies implemented
- Other measures aimed at strengthening compliance
FATF Deadline for Implementation
The FATF has set a three-year deadline for Luxembourg to address these weaknesses and implement effective solutions. PwC, a leading professional services firm, is well-positioned to support Luxembourg’s financial institutions in this effort.
Expert Services Offered by PwC
Our experts work closely with Alternative Investment funds, TCSPs, and other entities supervised by the AED and CAA to help increase effectiveness while reducing compliance costs. We offer a range of services, including:
- Ad-hoc support
- Managed services
- Assistance in meeting obligations under anti-money laundering regulations
Recommendation: Intensify Efforts Against Money Laundering
In light of these recommendations, Luxembourg is urged to intensify its efforts against money laundering and terrorist financing, building on the progress made so far. By doing so, the country can strengthen its reputation as a responsible international financial center and reduce the risk of reputational damage.
About PwC
PwC is a leading professional services firm with industry-specialized teams focused on transaction monitoring, sanctions, and terrorist financing. We work closely with clients to help them meet their obligations under anti-money laundering regulations while reducing compliance costs.