Financial Crime World

Luxembourg’s Financial Intelligence Unit Reports Surge in Illicit Activities

In its latest annual report, Luxembourg’s financial intelligence unit, the Commission de Regulation des Finances (CRF), has revealed a significant increase in illicit activities, including money laundering, fraud, and corruption.

Key Findings

  • The CRF received 2,503 declarations from traditional banks in 2020, a slight decrease from the previous year.
  • However, the number of blocking measures taken by the CRF increased by 227% to 291, with a total value of EUR 223 million.
  • The report highlights the growing trend of fraud and money laundering, particularly in relation to COVID-19-related activities.
  • Corruption declarations also increased, attributed to negative press articles and greater vigilance from professionals.
  • Virtual asset service providers (VASPs) have been added to the list of professionals subject to the Anti-Money Laundering Law.
  • 5,364 declarations related to suspicious transactions linked to online marketplaces on the Darkweb were reported.
  • Fraud and counterfeiting declarations decreased, attributed to improvements in declaration processes.
  • Insurance sector reports increased, linked to awareness campaigns led by the CAA (Commissariat aux Assurances).

Criminal Tax Offenses

  • The report highlights the importance of criminal tax offenses, with 34 reports received in 2020.
  • The CRF is working closely with the CSSF to identify VASPs active in Luxembourg.

Availability of the Report

The full report is available [here](insert link).