Luxembourg Scores High in Combating Money Laundering, but Urged to Boost Resources

The Financial Action Task Force (FATF) has released its evaluation report on Luxembourg following a joint session of the Parliamentary Justice Committee and the Finance and Budget Committee. The report praises Luxembourg for largely adhering to FATF’s recommendations and acknowledges the effectiveness of its anti-money laundering measures in place.

Key Findings

• Luxembourg is commended for its efforts in combating money laundering
• The country has made significant progress in implementing anti-money laundering measures
• However, there are still areas that require improvement

Room for Improvement

While Luxembourg’s anti-money laundering measures have been effective, the report emphasizes the need for the country to bolster its resources further. According to Claude Marx, director of the Financial Sector Supervisory Commission (CSSF), increasing staff numbers would enhance the country’s capabilities in detecting, investigating, and prosecuting complex money laundering cases.

Challenges Faced

• Luxembourg’s financial centre was placed on a grey list by FATF in 2010, which had a damaging effect on its reputation
• The government is urged to consider increasing staff numbers to further enhance its capabilities

Positive Developments

• The police, financial intelligence unit of the public prosecutor’s office, and examining magistrates have demonstrated dedication in combating money laundering
• Luxembourg has made significant progress in implementing anti-money laundering measures

By addressing these areas for improvement, Luxembourg can continue to strengthen its efforts in combating money laundering and maintaining its reputation as a trustworthy financial centre.