Luxembourg Country Summary

FATF Status

Luxembourg is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Luxembourg was undertaken in 2023. According to that Evaluation, Luxembourg was deemed Compliant for 28 and Largely Compliant for 11 of the FATF 40 Recommendations. It was rated Highly Effective for 3 and Substantially Effective for 6 of the Effectiveness Compliance ratings.

Luxembourg exhibits a strong resilience to crime and corruption, bolstered by effective governance and low corruption levels. The government has implemented robust anti-corruption measures, including a whistleblower law and strict regulations on public procurement, while also actively addressing issues such as human trafficking and drug-related crimes through cooperation with NGOs and international law enforcement agencies.

Luxembourg boasts a highly resilient economy, characterized by its status as one of the wealthiest nations per capita, largely driven by a robust financial sector managing over $5 trillion in assets. Despite facing a recession in 2023, the country achieved a budget surplus in 2024 and anticipates steady growth, supported by government initiatives to promote foreign direct investment (FDI) in strategic sectors such as financial services, ICT, clean energy, and health technologies. The government maintains an open investment climate with no significant barriers to foreign ownership, complemented by efficient business facilitation measures, making Luxembourg an attractive destination for global investors, particularly in the wake of post-Brexit relocations of financial institutions.