Luxembourg Strives for Compliance with Anti-Terrorist Financing Laws

The fight against money laundering and terrorist financing has become a top priority in Luxembourg, as the country works to ensure compliance with international standards.

International Cooperation

The Directorate for Combating Money Laundering and the Financing of Terrorism (AML/CFT Directorate) is at the forefront of this effort, representing Luxembourg during meetings of the Financial Action Task Force (FATF). The department participates in the development of international standards on combating money laundering and terrorist financing, and leads the preparatory work for mutual evaluations.

European Union Level

At the European Union level, Luxembourg participates in various working groups to combat money laundering and terrorist financing. These groups aim to:

• Develop common policies and procedures
• Share best practices and expertise
• Enhance cooperation among member states

National Level

At the national level, the AML/CFT Directorate ensures coordination among law enforcement authorities, supervisors, and financial intelligence units. The department also contributes to legislative texts concerning anti-money laundering and anti-terrorist financing laws, participating in the negotiation of regulations and directives.

Publications and Resources

The AML/CFT Directorate publishes various resources to raise awareness about money laundering and terrorist financing risks and provide recommendations for prevention and mitigation. These publications include:

• Risk assessments
• Guidelines
• Best practices for various sectors
• Reports on anti-money laundering and anti-terrorist financing

These resources aim to provide guidance to financial institutions, professionals, and organizations on preventing and combating money laundering and terrorist financing.

Legislative Framework

Luxembourg’s efforts are reflected in its legislative framework, which is aimed at combating money laundering and terrorist financing. The country has also published several reports on anti-money laundering and anti-terrorist financing, including a national risk assessment and vertical risk assessments on specific topics.

Conclusion

The AML/CFT Directorate plays a crucial role in ensuring Luxembourg’s compliance with international standards on combating money laundering and terrorist financing. Its work is essential for maintaining the country’s reputation as a reputable financial center and for protecting its citizens from these threats.