Financial Crime World

Luxembourg Enacts Stronger Anti-Money Laundering Regulations

The Luxembourg government has announced plans to strengthen its anti-money laundering (AML) regulations, aiming to bring the country’s defenses against financial crime in line with EU standards.

New Laws to Enhance Transparency and Accountability

According to sources close to the matter, the new laws will provide immediate access to beneficial ownership information held in national registries, including data going back at least five years. This will enable:

  • Journalists and media professionals to have direct and free access to this information
  • Civil society organizations to monitor and report on potential financial crimes
  • Competent authorities and supervisory bodies to detect and prevent money laundering

Key Provisions of the New Laws

  • Financial Intelligence Units (FIUs) will have more powers to analyze and detect suspicious transactions, as well as suspend them if necessary
  • Obliged entities, such as banks and asset managers, will be required to conduct enhanced due diligence on customers’ identities and report any suspicious activities to FIUs and other competent authorities
  • A cash payment limit of €10,000 will be introduced, except in non-professional contexts between private individuals
  • Ultra-rich individuals with total wealth worth at least €50 million (excluding their main residence) will be subject to enhanced vigilance provisions

Establishing a New Authority to Oversee Implementation

A new authority, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), will be established in Frankfurt. AMLA will be responsible for:

  • Directly supervising high-risk financial entities
  • Intervening in cases of supervisory failures
  • Acting as a central hub for supervisors

EU’s Broad Efforts to Combat Money Laundering and Terrorist Financing

The regulations are part of the EU’s broader efforts to combat money laundering and terrorist financing. The European Parliament has adopted:

  • The sixth Anti-Money Laundering (AML) directive
  • The EU “single rulebook” regulation
  • The Anti-Money Laundering Authority (AMLA) regulation

Expected Outcomes

The implementation of these regulations is expected to bring Luxembourg’s AML regulations in line with EU standards, enhancing transparency and accountability in the financial sector.