Edited by Sergio Silvestri

A few weeks ago, the FATF published a report assessing that the Grand Duchy of Luxembourg has a robust anti-money laundering and counter-terrorism financing (AML/CFT) framework and a good understanding of the money laundering and terrorist financing risks to which it is exposed. Luxembourg authorities make good use of financial intelligence and cooperate effectively with their international counterparts.

However, there are some areas where Luxembourg can improve its measures to combat money laundering and terrorist financing. These include greater attention to investigations and prosecutions related to money laundering, recovery of illicit activities, and supervision of non-profit organizations and certain non-financial sectors. In particular, greater focus is needed on high-risk sectors, such as real estate and non-financial professionals offering trust and corporate services.

The assessment also highlights that Luxembourg should improve the detection, investigation, and prosecution of complex money laundering cases. Furthermore, it is important for the country to develop and communicate more fully to public and private stakeholders how its status as an international financial center could be exploited for large-scale terrorist financing.

The assessment acknowledges Luxembourg's proactive involvement in identifying and investigating terrorist financing activities, but these investigations have so far not resulted in criminal proceedings or convictions due to the measures implemented and the country's risk profile.

In summary, Luxembourg has a solid foundation for combating money laundering and terrorist financing, but there is room for improvement in several key areas identified by the FATF. Luxembourg authorities should work to address these challenges and continue strengthening their AML/CFT framework to ensure the transparency and security of their financial sector.

Fonte: fatf-gafi.org