Luxembourg Fights Money Laundering with FATF Recommendations
The Directorate for Combating Money Laundering and the Financing of Terrorism (AML/CTF) plays a crucial role in combating money laundering and terrorist financing in Luxembourg. As a department within the Ministry of Justice, it represents Luxembourg at meetings of the Financial Action Task Force (FATF) and contributes to the development of international standards on fighting money laundering and terrorist financing.
European Union Level
The AML/CTF Directorate participates in various working groups to ensure that Luxembourg’s anti-money laundering and counter-terrorist financing regulations are aligned with EU directives. This ensures a harmonized approach across the European Union.
National Level
At the national level, the AML/CTF Directorate coordinates efforts across government agencies, supervisors, law enforcement authorities, and professional organizations to ensure a comprehensive approach to combating money laundering and terrorist financing.
Legislative Contributions
The AML/CTF Directorate contributes to legislative texts concerning the fight against money laundering and terrorist financing. This includes negotiations on regulations and directives forming the “anti-money laundering and anti-terrorist financing package” proposed by the European Commission.
Risk Assessments and Best Practices
Publications on risk assessments, guidelines, and best practices are key components of the AML/CTF Directorate’s work. These publications provide valuable insights into the risks associated with money laundering and terrorist financing in Luxembourg and abroad.
- FATF recommendations
- Methodology for assessing technical compliance
- Procedures for mutual evaluations
International Cooperation
In addition to its domestic efforts, the AML/CTF Directorate works closely with international partners, including the FATF, to share best practices and coordinate efforts to combat money laundering and terrorist financing globally.
- Latest reports from the FATF on various topics, such as:
- Crowdfunding for terrorism financing
- Countering ransomware financing
- Illicit financial flows from cyber-enabled fraud
Conclusion
The AML/CTF Directorate plays a vital role in Luxembourg’s efforts to combat money laundering and terrorist financing, both domestically and internationally. Its work is crucial in protecting the country’s financial system and preventing these crimes that threaten global stability and security.