Luxembourg’s Evaluation Reports

Published in September 2023, Luxembourg’s Mutual Evaluation Report by the Financial Action Task Force (FATF) highlights an overall strong performance, positioning the country among the highest-rated jurisdictions. The FATF acknowledges the high quality of Luxembourg’s anti-money laundering and counter-terrorist financing (AML/CFT) framework, recognising its high level of technical compliance and the effectiveness of its system.

In terms of technical compliance, Luxembourg achieved the highest rating (« compliant ») for 28 of the 40 Recommendations. For the remaining 11 Recommendations, it was rated « largely compliant », resulting in a technical compliance score of 39 out of 40. Regarding effectiveness, Luxembourg’s system was deemed « substantial » for five of the eleven immediate outcomes, with « moderate » effectiveness for the remaining outcomes.

This report covers the period from 1 January 2017 to 18 November 2022 and reflects significant progress since the previous evaluation in 2010. These advancements stem from a clear political commitment to strengthening the AML/CFT framework and the dedicated engagement of relevant authorities.

Luxembourg ranked first among the 35 evaluated countries (FATF member jurisdictions) in the horizontal review conducted by the FATF on « gatekeepers »—professions that serve as entry controllers to the financial system in the fight against money laundering and terrorist financing.

This review assessed technical compliance with the FATF’s Recommendations on Designated Non-Financial Businesses and Professions (DNFBPs), with a particular focus on jurisdictions’ ability to prevent and combat corruption. Given the strong link between corruption and money laundering, the review concentrated on lawyers, accountants, trust and company service providers, and real estate professionals, who play a critical role in safeguarding the integrity of the financial system.

Building on the findings of the 4th Mutual Evaluation Report, this review awarded Luxembourg a 100% compliance score for implementing all required preventive measures since 2003. It further confirmed that Luxembourg possesses all necessary powers and tools to enforce supervisory programmes over these sectors.

Luxembourg distinguished itself by fully applying all FATF requirements analysed in this review, securing the top position among evaluated countries.