Luxembourg Scores High in Fight Against Money Laundering and Terrorist Financing
The Financial Action Task Force (FATF) has published its fourth mutual evaluation report on Luxembourg, praising the country’s efforts to combat money laundering and terrorist financing.
Assessment of Luxembourg’s AML/CFT System
The report assessed Luxembourg’s anti-money laundering and counter-terrorist financing (AML/CFT) system between 2017 and 2022. The assessment found that Luxembourg had made significant progress in improving its AML/CFT framework, demonstrating a strong understanding of its money laundering risks and a reasonable understanding of its terrorist financing risks.
Praises and Areas for Improvement
The report praised Luxembourg’s commitment to investigating and prosecuting money laundering, as well as its increased efforts to increase transparency of legal persons and arrangements. However, it identified areas for improvement, including:
- Need for more focus on money laundering investigations and prosecutions
- Asset recovery
- Supervision of non-profit organizations and certain non-financial sectors
- Improvement in detection, investigation, and prosecution of complex money laundering cases
Technical Compliance with FATF Recommendations
The report found that Luxembourg had achieved a high level of technical compliance, with 39 out of 40 recommendations fully implemented or largely compliant.
Ministerial Reaction
Luxembourg’s Minister of Justice, Sam Tanson, welcomed the publication of the report, saying it recognized the country’s strong performance in fighting money laundering and terrorist financing. “This strengthens Luxembourg’s credibility on the international scene,” he said.
Yuriko Backes, Luxembourg’s Minister of Finance, also praised the report, noting that it confirmed the robustness and integrity of the country’s financial center. “I welcome this mutual evaluation report which confirms our financial centre is a safe haven for investors and strengthens its reputation globally,” she said.
Conclusion
Despite areas for improvement identified in the report, Luxembourg’s overall performance has been praised by the FATF. The report recognizes the country’s efforts to combat money laundering and terrorist financing, confirming its credibility on the international scene.