Luxembourg Regulators Crack Down on Money Laundering and Terrorist Financing

In an effort to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) regime, Luxembourg’s financial regulators are intensifying their efforts to identify and prevent suspicious transactions.

Harmonizing AML/CFT Frameworks in the EU

The Commission de Regulation du Secteur Financier (CRF), Luxembourg’s financial regulator, has announced plans to increase its monitoring of financial institutions and other entities subject to AML/CFT regulations. This move comes as part of a broader effort by European Union member states to harmonize their AML/CFT frameworks and prevent the misuse of financial systems for illicit purposes.

Registers and Databases for Beneficial Ownership Information

Under the Anti-Money Laundering Directive (AMLD), Luxembourg has established a range of registers and databases to facilitate the identification, verification, and monitoring of beneficial ownership information. These include:

• The Trade and Companies Register (RCS)
• The Beneficial Owner Register (RBE)
• The Register of Fiduciary Contracts and Trusts (RFT)

These registers provide information about corporations, beneficial owners, and fiduciary contracts and trusts.

Strengthened Cooperation with Foreign Counterparts

Luxembourg’s financial regulators have also strengthened their cooperation with foreign counterparts and European Supervisory Authorities to share beneficial ownership and other corporate information internationally.

Enhanced Monitoring of Financial Institutions

The CRF has implemented measures to enhance its monitoring of financial institutions and entities subject to AML/CFT regulations. This includes:

• Increasing resources and expertise in areas such as risk assessment, suspicious transaction reporting, and customer due diligence
• Conducting regular checks on financial institutions and entities subject to AML/CFT regulations

Industry insiders have welcomed the move, saying it is a critical step towards strengthening Luxembourg’s AML/CFT framework and preventing the misuse of financial systems for illicit purposes.

“The introduction of these registers and databases is a major step forward in our efforts to prevent money laundering and terrorist financing,” said [Name], CRF spokesperson. “We will continue to work closely with our international partners to ensure that our AML/CFT regime remains robust and effective.”

Industry experts agree that the increased scrutiny is likely to lead to greater transparency and accountability in the financial sector.

“The introduction of these registers and databases will help to identify and prevent suspicious transactions,” said [Name], industry expert. “It’s a critical step towards strengthening Luxembourg’s AML/CFT framework and preventing the misuse of financial systems for illicit purposes.”