Law, Tax, Compliance
FATF publication of the Luxembourg Mutual Evaluation Report
Published on 28 September 2023
The report highlights the importance of a risk-based approach and effective AML procedures, while the ABBL underlines the banking sector’s continued commitment to compliance and cooperation with public authorities.
Summary
The FATF’s mutual evaluation of Luxembourg has just been published and is available here.
In its press release, the FATF points out that “the Grand Duchy of Luxembourg has a sound framework for combating money laundering and terrorist financing and a good understanding of its money laundering and terrorist financing risks”.
This only confirms the seriousness and robustness of the anti-money laundering and combating the financing of terrorism procedures applied regularly by the compliance community over the years.
However, the FATF stresses that “Luxembourg needs to focus more on money laundering investigations and prosecutions, asset recovery and the monitoring of non-profit organisations and certain non-financial sectors”, adding that “the banking, investment, trust and business services sectors are among the most vulnerable to money laundering and terrorist financing”.
Just because a sector or activity is considered risky does not necessarily mean that money laundering will occur. AML procedures exist to mitigate risk. This is where we need to differentiate inherent risk from residual risk, after applying the risk-based approach and AML procedures.
Elena Hdidou
Legal Adviser, ABBL
The ABBL would like to thank its members for their professionalism in compliance and for the trust and cooperation placed in the ABBL and its public partners.
Sandrine Roux
Secretary General, ABBL
Published on 28 September 2023