Financial Crime World

Luxembourg Financial Intelligence Unit Sees Over 50,000 Declarations and EUR 231 Million in Blocked Funds in 2019

The Luxembourg Financial Intelligence Unit (FIU) has published its annual report for 2019, revealing a significant increase in declarations and blocked funds compared to the previous year.

Declared Transactions and Blocked Funds

  • The FIU received over 52,000 declarations in 2019, a decrease of 6.5% compared to the previous year.
  • The total amount of blocked funds exceeded EUR 231 million, an increase of 69% from the previous year’s figure of EUR 137 million.

Blocking Measures

  • The FIU took 89 blocking measures in 2019, resulting in a significant increase in frozen funds compared to the previous year.
  • The majority of these blocks were linked to fraud, with 48 cases identified.
  • Banks: Reported an 19.39% increase in declarations compared to the previous year, driven by increased awareness among declarants regarding suspicious transactions and documents.
  • Insurance sector: Saw a significant increase in reports made in 2019 (45) compared to the previous year (31), attributed to an awareness campaign led by the Commissariat aux Assurances.

Referrals to Prosecution Teams

  • The FIU sent 219 reports to prosecution teams in 2019, a significant increase from the 91 reports made in 2018.
  • Criminal tax offenses and fraud remain key areas of concern for banks and insurers, emphasizing the importance of having robust policies and procedures in place to detect and manage suspicious cases.

Conclusion

The Luxembourg Financial Intelligence Unit’s annual report highlights its crucial role in combating financial crime and promoting transparency in the financial sector. The report serves as a testament to the FIU’s efforts to strengthen financial regulation and deter illegal activities. The report is available online for public access.