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Luxembourg’s Financial Crime Definition: A Comprehensive Overview
The Grand Duchy of Luxembourg has implemented robust measures to combat financial crime, including money laundering. The country’s financial intelligence unit, the Centre de Recherche et de Formation (CRF), plays a crucial role in detecting and preventing such crimes.
Money Laundering Definition
According to Article 506-1 of the Criminal Code, money laundering can be defined as knowingly facilitating, by any means, the false justification of the nature, origin, location, disposition, movement or ownership of criminal property. This includes:
- Assisting in the placement, concealment, disguise, conversion, transfer or use of such property
- Providing financial services for the purpose of money laundering
- Possessing or managing criminal property
Extraterritorial Reach
Luxembourg’s anti-money laundering laws have extraterritorial reach, allowing authorities to prosecute individuals and entities involved in money laundering activities, regardless of where they are located. However, the predicate offence must be a criminal offence in the foreign country for the money laundering offence to be prosecuted.
Limitation Periods
Money laundering is time-barred after five years, as per Article 638 of the Criminal Proceedings Code. The starting point of the limitation period depends on whether the act of money laundering results from instantaneous or continuous actions.
Asset Forfeiture and Confiscation
In addition to criminal penalties, Luxembourg’s anti-money laundering laws provide for asset forfeiture and confiscation. Authorities can seize property that was used or intended to be used to commit a crime, as well as property that is the proceeds of a crime.
Plea Bargaining and Sentencing
The law allows for plea bargaining in money laundering cases, which can lead to shortened criminal proceedings through reaching a judgment upon consent. The court may also impose alternative sentences, such as:
- Professional prohibitions
- Business closure
Victim Compensation
Luxembourg’s anti-money laundering laws provide for victim compensation, with the confiscated property being returned to the victim of the offence.
Conclusion
Luxembourg has implemented a comprehensive framework to combat financial crime, including money laundering. The country’s authorities have the power to prosecute individuals and entities involved in such activities, regardless of where they are located. With its robust anti-money laundering laws and regulations, Luxembourg is committed to maintaining its reputation as a stable and secure financial hub.