Financial Crime World

Luxembourg’s Financial Watchdog Unveils Soaring Cases of Corruption, Bribery and Money Laundering

Commission for the Prevention of Money Laundering (CRF) Reports Significant Surge in Financial Crimes

In its latest annual report, Luxembourg’s Commission for the Prevention of Money Laundering (CRF) has revealed a significant surge in cases of corruption, bribery, money laundering, and other financial crimes.

Key Findings

  • 291 blocking measures were taken by the CRF in 2020, a stark increase from the 89 measures taken in 2019.
  • The majority of these blocking orders were linked to fraud, with 87 declarations received compared to 48 in 2019.
  • Corruption declarations continued to increase, with a significant jump from 82 to 210 between 2018 and 2020.

Factors Contributing to the Increase

  • Negative press articles published in 2019 and 2020
  • Vigilance of professionals regarding suspicious transactions related to money laundering cases

Virtual Asset Service Providers Under Scrutiny

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  • The report highlights the growing number of declarations from virtual asset service providers (VASPs), which have been added to the list of professionals subject to anti-money laundering laws.
  • In 2020, 5,364 declarations were received from VASPs, a significant increase from 748 in 2019.

Declared Cases Concerning Virtual Asset Service Providers

  • Suspicious transactions related to online marketplaces on the Darkweb
  • Economically unclear transaction behaviors such as:
    • Use of mixers
    • Transactions carried out for the sole purpose of scrambling the origin of funds

Insurance Sector Sees Increase in Reports

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  • The insurance sector also saw an increase in reports, with 116 entities registered with the CRF’s online “goAML” tool in 2020 compared to 82 in 2019.
  • This is attributed to an awareness campaign led by the Commissariat aux Assurances (CAA), Luxembourg’s insurance regulator.

Criminal Tax Offenses Remain a Concern

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  • The report notes that criminal tax offenses remain at the top of the list of primary reported offenses, highlighting the importance of awareness and vigilance in this area.

Conclusion

The CRF’s annual report highlights the growing threat of financial crime in Luxembourg, with corruption, bribery, money laundering, and other financial crimes on the rise. The watchdog has taken steps to address these issues, including increased vigilance from professionals and regular exchanges with the CSSF to identify VASPs active in the country.

Full Report Available

The full CRF annual report is available [here](insert link).