Luxembourg’s Money Laundering and Terrorist Financing Risks Assessed
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A comprehensive report released today highlights the significant risks of money laundering and terrorist financing in Luxembourg. The assessment, conducted by more than 50 contributors from over 15 agencies, involved over 100 bilateral discussions and analysis of thousands of data points.
Inherent Risks
Luxembourg’s economy, openness, and structural factors contribute to inherent ML/TF (Money Laundering/Terrorist Financing) risks, making it an attractive location for legitimate businesses. However, mitigating factors in place reduce these risks, resulting in residual risks being assessed.
Threats Identified
- Primary threats stem from money laundering of foreign proceeds of crime
- Domestic exposure is significantly smaller
- Moderate overall threat level for terrorist financing
Predicate Offence Level
Here is a detailed table outlining Luxembourg’s exposure to ML/TF threats by predicate offence level:
| Predicate Offence | Risk Level |
|---|---|
| Money Laundering, Fraud and Forgery, Tax Crimes, Corruption and Bribery, Drug Trafficking, Participation in Organized Criminal Groups, Sexual Exploitation, Cybercrime, Counterfeiting and Piracy of Products, Smuggling, Robbery or Theft, Extortion | Very High |
Impact on AML/CFT Regime
The report’s findings will inform strategic actions to improve Luxembourg’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime, prioritizing resource allocations and addressing key vulnerabilities.
Methodology
The assessment was conducted in line with FATF definitions and methodologies, incorporating expert judgement, research, data analysis, bilateral meetings, and workshop discussions with judicial authorities.
Conclusion
“This comprehensive report provides a critical understanding of the ML/TF risks facing Luxembourg,” said [Name], Director of [Agency]. “We will use these findings to enhance our AML/CFT regime, protecting the financial system and preventing the misuse of funds for criminal activities.”
Availability of Report
The full report is available on the website of [Agency] or [Other relevant agency].
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