Luxembourg Financial Crime Statistics Worldwide: Judiciary Calls for Greater Resources to Combat Money Laundering and Terrorist Financing

Lack of Resources Hinders Fight Against Financial Crime

Luxembourg’s fight against financial crime has been hindered by a lack of resources, leading prosecutors and the attorney general to express concerns in parliament yesterday. The country is struggling to implement recommendations from the global anti-money laundering watchdog, the Financial Action Task Force (FATF), which criticized Luxembourg’s low levels of detection and prosecution of larger cases.

Backlog of Suspected Financial Crimes

According to prosecutors, there are approximately 400 files on suspected financial crimes awaiting investigation. Public prosecutor Georges Oswald revealed that investigators are receiving a growing number of reports from state administrations, but with only 15 magistrates at the financial and economic section of the public prosecutor’s office, efforts to combat financial crime are being hindered.

Resource Constraints

The situation is compounded by the lack of resources available to government agencies involved in asset recovery and the detection and prosecution of high-profile dirty money cases. The country failed to achieve the highest possible score for the effectiveness of its anti-money laundering measures in any of the 11 areas examined by FATF, despite scoring highly in technical compliance.

Action Plan to Address Shortcomings

The justice ministry has drawn up an action plan to address the shortcomings, including hiring more magistrates and speeding up judicial procedures. A working group has also been established to implement each of the seven recommendations laid out in the report.

Call for Greater Resources

However, the judiciary is calling for greater resources to support their work, with public prosecutor Oswald stressing the need for “quickly finding the necessary civil servants and clerks” to support the magistrates. The attorney general, Martine Solovieff, also echoed these concerns, highlighting the delays that have existed since the emergence of Luxembourg’s financial centre in the 1980s.

Government Response

The government has promised to consider new laws to address the shortfall, while a bill currently working its way through parliament aims to provide additional recruitment support for the judiciary. The justice committee chair, Laurent Mosar, expressed his concern over the staffing situation and invited the representatives of the judiciary to return in a year’s time to take stock of progress.

Pressure to Improve Financial Crime Statistics

The call for greater resources comes as Luxembourg faces mounting pressure to improve its financial crime statistics worldwide. The country’s reputation as a major financial hub is at risk if it fails to address these concerns, and the judiciary is urging swift action to prevent further delays.