Luxembourg Conforms to FATF Recommendations on Combating Money Laundering and Terrorism Financing

With Minor Areas for Improvement

A recent report by the Financial Action Task Force (FATF) has concluded that Luxembourg has a solid criminal legal framework and supervisory system in place to combat money laundering, although there are some areas requiring further attention.

Strengths of Luxembourg’s Anti-Money Laundering Framework

• The country’s criminal legal framework provides a comprehensive basis for addressing money laundering.
• The supervisory system is designed to ensure that financial institutions and other entities are adequately monitored for suspicious activities.

Areas for Improvement

• The scope of predicate offences in Luxembourg’s criminal code is limited, which could potentially hinder efforts to combat money laundering.
• The report recommends that Luxembourg strengthen its reporting requirements for suspicions of terrorism financing.

Overall Assessment

Despite these minor areas for improvement, the overall assessment concludes that Luxembourg has made significant progress in implementing FATF recommendations and is well-positioned to continue strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The country’s commitment to fighting financial crime and protecting its financial system from abuse is evident in its ongoing efforts to enhance its AML/CFT framework.

Report Details

The report, titled “Country Report No. 2004/399: Luxembourg”, was published by the International Monetary Fund (IMF) on December 8, 2004, and can be downloaded free of charge in PDF format.