Financial Crime World

Luxembourg’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Efforts

Strong Technical Compliance with FATF Standards

Luxembourg has demonstrated strong technical compliance with the Financial Action Task Force (FATF) Standards, indicating a high level of adherence to international anti-money laundering and counter-terrorist financing regulations.

  • Key Strengths:
    • Strong domestic co-ordination and cooperation on AML/CFT issues at both policy and operational levels
    • Risk assessments have informed national AML/CFT policies and activities, resulting in multiple national and agency-level action plans over the past four years

Moderate to Low Threat Level for Terrorism and CTF

Luxembourg assesses the threats of terrorism and CTF as moderate to low, with no terrorist attacks experienced on its territory.

  • Key Facts:
    • Luxembourg has not experienced any terrorist attacks on its territory
    • The country’s risk assessments inform national AML/CFT policies and activities

Areas for Improvement

While Luxembourg has made significant progress in improving its AML/CFT measures, there are still areas that require attention and improvement to ensure the effectiveness of the system.

  • Lack of Adequate Dissemination of Risk Information:
    • Most authorities’ overall TF risk understanding is more recent and less well-developed
    • Findings related to larger-scale TF stemming from Luxembourg’s status as an international financial centre have not been adequately disseminated across all authorities and the private sector
  • Prioritization of Action Items Has Not Been Well-Communicated:
    • The prioritization of action items has not been well-communicated to some government stakeholders critical to their implementation

Conclusion

Luxembourg’s efforts to improve its AML/CFT measures have yielded significant results, including strong technical compliance with FATF Standards and a moderate to low threat level for terrorism and CTF. However, there are areas that require improvement, such as the dissemination of risk information and prioritization of action items. Addressing these concerns will be essential to ensuring the effectiveness of Luxembourg’s AML/CFT system.