Luxembourg Enhances Financial Institution Security Measures to Combat Global Threats

Strengthening Regulatory Framework to Combat Global Threats

In a bid to strengthen its financial institution security measures and align with international efforts to combat global threats, Luxembourg has revised its regulatory framework for implementing restrictive measures in financial matters. The new law, which came into effect on December 27, 2020, aims to broaden the scope of sanctions, increase penalties for non-compliance, and enhance cooperation between authorities.

Key Changes

• Broader Definition of Restrictive Measures: The revised legislation introduces a broader definition of “restrictive measures in financial matters,” which now encompasses:
  • Prohibitions on financial activities
  • Restrictions on providing financial services, technical assistance, training, or advice
  • Freezing of funds and assets
• Additional Powers to Supervisory Authorities and Self-Regulatory Bodies: The law grants additional powers to supervisory authorities and self-regulatory bodies to strengthen the effectiveness of the sanctions regime

Increased Penalties for Non-Compliance

The penalties for non-compliance with restrictive measures have been significantly increased, with fines ranging from €12,500 to €5 million. In cases where financial gain is involved, the fine can be increased up to four times the amount at stake.

Luxembourg’s Commitment to Global Security and Stability

Luxembourg’s revised legislative framework aims to present a stronger and more developed regulatory environment for implementing restrictive measures in financial matters. The country’s efforts are aligned with international standards and obligations, reflecting its commitment to upholding global security and stability.