Financial Crime World

Here is the rewritten article in markdown format:

Financial Sanctions Checklist in Luxembourg: What You Need to Know

In a move aimed at strengthening its anti-money laundering and counter-terrorism financing framework, Luxembourg has introduced a dedicated legislative arsenal for implementing financial restrictive measures adopted by the United Nations and the European Union.

Who is Affected?


The scope of the law applies to:

  • All Luxembourg nationals who reside or operate in or from the territory of the Grand Duchy of Luxembourg or abroad
  • Legal persons with their registered office, permanent establishment, or centre of main interests on Luxembourg territory
  • Branches of Luxembourg companies established abroad and foreign companies operating in Luxembourg

Authorities Responsible for Supervision


Financial regulators and self-regulatory bodies have been tasked with supervising individuals under their jurisdiction to ensure compliance with the law. These authorities have increased powers of supervision and investigation, including:

  • Accessing documents
  • Requesting information
  • Carrying out on-site inspections
  • Imposing administrative sanctions

Penalties for Non-Compliance


Those who fail to comply with the restrictive measures may face criminal penalties, including:

  • Imprisonment for up to five years
  • A fine of EUR 12,500 to EUR 5 million
  • In cases where substantial financial gain has been made, the fine can be increased to four times the amount of the offence

Conclusion


The Law of December 2020 aims to strengthen Luxembourg’s anti-money laundering and counter-terrorism financing framework by providing a dedicated legislative arsenal for implementing financial restrictive measures. Individuals and companies operating in or from Luxembourg should familiarize themselves with the law’s requirements and penalties to ensure compliance.