Financial Crime World

Luxembourg Faces Global Competition in Financial Crime Statistics

A recent survey has revealed that Luxembourg’s financial sector is facing increased competition in its efforts to combat money laundering and terrorist financing. The EMEA AML Survey 2024, conducted by PwC, highlighted the Grand Duchy’s struggles to maintain its effectiveness in this area.

Challenges in Preventing Financial Crime

According to the survey, 44% of Luxembourg respondents believe recruiting skilled staff is one of the biggest challenges in preventing financial crime, with 31% citing salary packages as a major obstacle. This is significantly higher than the EMEA and EU averages, where only 24% and 25% of respondents respectively identified this as an issue.

  • 44% of Luxembourg respondents believe recruiting skilled staff is a challenge
  • 31% cite salary packages as a major obstacle

Outdated Operating Systems Hinder AML Efforts

The survey also found that 69% of Luxembourg respondents claim their anti-money laundering (AML) operating systems are outdated, with data quality being the most commonly cited impediment to increasing AML technological capabilities. This lack of modernization is hindering the adoption of newer technologies such as artificial intelligence (AI), which are incompatible with older operating models.

  • 69% of Luxembourg respondents claim their AML operating systems are outdated
  • Data quality is the most common impediment to increasing AML technological capabilities

Technology Adoption Lagging Behind

Despite this, only 13% of Luxembourg respondents have implemented cloud solutions compared to 53% in EMEA, and only 53% are considering adopting AI compared to 81% in EMEA. Furthermore, 42% of Luxembourg respondents will allocate over 10% of their budget to digital tools, a figure that is significantly lower than the 56% in EMEA.

  • Only 13% of Luxembourg respondents have implemented cloud solutions
  • Only 53% are considering adopting AI
  • 42% of Luxembourg respondents will allocate over 10% of their budget to digital tools

PwC’s AML Benchmarking Tool

In response to these findings, PwC has developed an AML benchmarking tool designed to provide organisations with unique insights on regulations, operations and technology in the EMEA AML market. This tool will enable organisations to see where they stand compared to industry peers, empowering them to make informed decisions.

“We are committed to helping our clients navigate the complex landscape of financial crime prevention,” said [Name], Partner at PwC. “Our AML benchmarking tool is designed to provide organisations with tailored insights and recommendations on how to improve their AML capabilities and stay ahead of the competition.”

Conclusion

The EMEA AML Survey 2024 provides a comprehensive analysis of the anti-money laundering landscape in Europe, Middle East and Africa. The full report is available for download, and an executive summary can be accessed here.

For more information or to book a demo of the AML benchmarking tool, please contact [Name] at PwC.