Financial Crime World

Luxembourg Takes a Strong Stance Against Financing of Terrorism

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Luxembourg has taken a strong stance against the financing of terrorism by establishing the Directorate for Combating Money Laundering and the Financing of Terrorism (AML/CFT Directorate) within the Ministry of Justice. The department plays a crucial role in representing Luxembourg at international meetings of the Financial Action Task Force (FATF), where it works to develop standards for combating money laundering and terrorist financing.

International Efforts

  • Represents Luxembourg at FATF meetings, working to develop standards for combating money laundering and terrorist financing
  • Participates in various working groups at the European Union level, ensuring alignment with EU policies and regulations

National Coordination

  • Coordinates the fight against money laundering and terrorist financing as the Executive Secretariat of:
    • Committee for the Prevention of Money Laundering and Terrorist Financing
    • Inter-ministerial Steering Committee for the Fight Against Money Laundering and Terrorist Financing
  • Conducts risk assessments, including national risk assessment of money laundering and terrorist financing, and vertical risk assessments on specific topics

Legislative Contributions

  • Contributes to legislative texts concerning the fight against money laundering and terrorist financing
  • Negotiates regulations and directives forming the “anti-money laundering and anti-terrorist financing package” proposed by the Commission

Guidelines and Training

  • Publishes guidelines and best practices for non-financial sectors, such as:
    • Collective investments
    • Private banking
  • Provides training and awareness programs for:
    • Civil society organizations
    • Financial institutions
  • Helps them understand the risks of money laundering and terrorist financing

Global Efforts

  • Participates in FATF reports and guidance documents, providing recommendations and best practices for countries to prevent and combat this threat
  • Contributes to a broader global effort to disrupt the financial networks used by terrorist organizations and protect the financial system from abuse

Through its work, the AML/CFT Directorate demonstrates Luxembourg’s dedication to protecting its citizens and the international community from the threats posed by money laundering and terrorist financing.