During its latest plenary meeting, the Financial Action Task Force (FATF) concluded that Luxembourg has reached a high level of technical compliance with the FATF’s requirements and its AML/CFT regime is delivering good results.

Xavier Hamori, Authorized Director & Chief Compliance Officer, VPsf, Value Partners group, shares his comprehensive analysis of this mutual evaluation, the full version of which is expected in September.

Key highlights:
– High compliance: Luxembourg demonstrates strong adherence to FATF standards, indicating a high level of technical compliance.
– Effective AML and CFT regime: Luxembourg’s Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures have proven effective in safeguarding against financial crimes.
– Robust risk understanding: Luxembourg exhibits a solid understanding of money laundering and terrorist financing risks, enabling proactive risk mitigation.
– Strong cooperation: The country demonstrates robust domestic and international cooperation, particularly in financial intelligence and access to beneficial ownership information.

Areas for improvement:
– Enhanced detection and prosecution: Efforts should be focused on improving the detection, investigation, and prosecution of complex money laundering cases.
– Strengthened non-financial sector supervision: Risk-based supervision in the non-financial sector should be strengthened to ensure comprehensive oversight.
– Increased awareness of terrorist financing risks: Luxembourg should amplify the understanding and dissemination of terrorist financing risks to both public and private sectors.
– Proportionate sanctions: Measures should be taken to ensure that non-compliance sanctions are proportionate and dissuasive across all sectors.

Should you wish further details about Luxembourg’s compliance with the FATF Standards and how Value Partners can assist you with AML/CFT matters, please contact Bonny K., Director, AML Services.