Luxembourg Scores Top Marks in FATF Gatekeepers Review

On Tuesday 9 July 2024, Luxembourg's Ministry of Finance and the Ministry of Justice reported that the Grand Duchy had obtained the best result in a recent "horizontal review" carried out by the Financial Action Task Force (FATF).

This "Horizontal Review of Gatekeepers' Technical Compliance Related to Corruption" looked at so-called gatekeepers who assume a role of controller of entry to the financial system in terms of the fight against money laundering and against the financing of terrorism.

The objective of this review was to assess the technical compliance of FATF members with its recommendations on designated non-financial businesses and professions, with particular attention paid to the capacity of jurisdictions to prevent and combat corruption.

As corruption is often linked to money laundering, the exercise focused on the sectors of lawyers, accountants, corporate service providers and real estate professionals, who play a crucial role as guardians of the integrity of the financial system as a whole, noted the ministries.

By confirming the good results obtained within the framework of the fourth mutual evaluation report, the horizontal review certified in Luxembourg a score of 100% for the implementation of all the preventive measures required since 2003 and that the country has all the powers and tools necessary to implement supervision programmes in these sectors.

The ministries added that Luxembourg stood out for its rigorous application of all FATF requirements analysed as part of this review and thus ranked first among the countries evaluated.

"I am delighted with this excellent result which highlights the integrity of our financial system. These results demonstrate that the efforts made to reform and adapt our legislative framework are bearing fruit and demonstrate the commitment to maintaining an honest ecosystem," stated Luxembourg's Minister of Finance, Gilles Roth. "We are proud of the concerted efforts of our administration and supervisors which ensure high standards of governance and thus strengthen the confidence of investors and all stakeholders."

"Once again, the FATF recognises that the Luxembourg legislative framework meets the highest international requirements in the fight against money laundering and the financing of terrorism," added Luxembourg's Minister of Justice, Elisabeth Margue. "We welcome the publication of this review which highlights our ongoing commitment to the fight against money laundering and the financing of terrorism."

The full review is available (in English) as a PDF on the FATF website: https://www.fatf-gafi.org/en/publications/Fatfgeneral/Gatekeeper-TC-Corruption.html.