Financial Crime World

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

The Luxembourg Financial Intelligence Unit (FIU) has published its annual report for 2019, revealing a significant year-end snapshot of financial crime detection and prevention efforts in the Grand Duchy of Luxembourg.

Key Statistics

  • The FIU received over 50,000 declarations in 2019, a decrease from 55,948 in 2018 to 52,374.
  • There was an increase in declarations from banks, investment firms, and other financial sector professionals, while online providers saw a decline.
  • The FIU took 89 blocking measures in 2019, with a total amount blocked exceeding EUR 231 million.

Fraud Detection and Prevention

The majority of the FIU’s blocking measures were linked to fraud. In 2019, the unit instructed declarants not to perform transactions in cases where suspicious activity was detected. The report highlights the importance of robust policies and procedures for detecting and managing suspicious cases.

Corruption Declarations

There was an increase in corruption declarations made by traditional banks in 2019, attributed to negative press articles and heightened awareness among declarants regarding suspicious transaction schemes and inconsistent documents. A focus on loan or advisory agreements with uncertain economic justification was also noted.

Insurance Sector Activity

  • The number of actors registered for the FIU’s online “goAML” tool doubled during 2019 due to an awareness campaign led by the Commissariat aux Assurances.
  • There was an increase in suspicious transaction reports from the insurance sector, with 45 more reports filed compared to 2018.

Prosecution and Referrals

The report notes that the FIU referred 219 reports to prosecution teams in 2019, up from 91 reports in 2018. This demonstrates a consistent and mature reporting environment, with criminal tax offenses and fraud remaining key areas of focus for banks and insurers.

Recommendations

It is essential that all financial institutions have robust policies and procedures in place to detect and manage suspicious cases. Additionally, staff, internal control functions, management, and the board of directors should stay up-to-date on the latest developments in this area to ensure effective compliance with anti-money laundering and combating the financing of terrorism regulations.