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 demonstrates a strong resilience to crime and corruption, characterized by low levels of corruption and effective governance. The government actively enforces anti-corruption laws, collaborates with international organizations to combat transnational crime, and has implemented measures to protect vulnerable populations from human trafficking and other criminal activities.

Luxembourg, a small yet economically robust Grand Duchy in northwestern Europe, ranks as the third-wealthiest country globally based on GDP per capita. The recent formation of a coalition government aims to bolster the economy through strategic investments, tax reforms, and initiatives addressing climate change, with a notable €4.3 billion allocated for infrastructure and digital innovation. Despite facing economic challenges, including a recession in 2023, Luxembourg's resilient financial sector and proactive government policies position it as a major global financial center, attracting foreign investment while maintaining a strong commitment to transparency and regulatory reforms.