Luxembourg Fights Money Laundering and Terrorist Financing with Vigilance
Luxembourg has taken a robust approach to combating the threats of money laundering and terrorist financing by establishing a comprehensive framework to safeguard its financial system.
The Directorate for Combating Money Laundering and the Financing of Terrorism (AML/CFT Directorate)
The AML/CFT Directorate, a department of the Ministry of Justice, is at the forefront of Luxembourg’s efforts to prevent money laundering and terrorist financing. This directorate represents Luxembourg in international forums, including the Financial Action Task Force (FATF), where it collaborates with other countries to develop global standards for combating these financial crimes.
National Coordination and Collaboration
To achieve its goals, the AML/CFT Directorate works closely with various stakeholders at both national and European Union levels. This includes:
- Participating in working groups at the EU level
- Coordinating with other ministries, supervisors, financial intelligence units, law enforcement authorities, professional organizations, and associations at the national level
Legislative Texts and Risk Assessments
The AML/CFT Directorate plays a crucial role in shaping legislative texts related to preventing money laundering and terrorist financing. It also publishes various risk assessments, guidelines, and best practices to help financial institutions and other stakeholders identify and mitigate risks associated with these financial crimes.
Some notable publications include:
- The National Risk Assessment of Money Laundering and Terrorist Financing 2020
- Vertical Risk Assessments on specific topics such as legal persons, virtual asset service providers, and more
International Reports and Best Practices
The AML/CFT Directorate also provides access to various international reports, guidelines, and best practices from organizations like the FATF. These resources cover topics such as:
- Combating the abuse of non-profit organizations
- Recovering international proceeds of crime
- Countering ransomware financing
Commitment to Prevention
By working together with international partners and domestic stakeholders, Luxembourg is demonstrating its commitment to preventing money laundering and terrorist financing. This effort aims to ensure a safer and more stable financial system for all.
By combating these financial crimes, Luxembourg is contributing to a global effort to maintain the integrity of the financial system and protect it from threats posed by money laundering and terrorist financing.