Enactment Of Three New Luxembourg Laws On Or In Relation To The Fight Against Money-Laundering And The Financing Of Terrorism (AML)

The AML Luxembourg legislative framework has been significantly modified by the promulgation of the law of 27 October 2010 reinforcing the fight against money-laundering and the financing of terrorism. This new law was published in the Mémorial A, n° 193, dated 3 November 2010. Pursuant to the general principles of entry in force of Luxembourg law, this law will be effective three days after its publication, i.e. on 6 November 2010 (the "New AML Law").

The New AML Law is complemented by two additional specific laws (also published in the same Mémorial A issue):

(i) law of 27 October 2010 relating to the control of cash movements into, throughout or out of Luxembourg; and

(ii) law of 27 October 2010 relating to the implementation of the resolutions of the UN Security Council which contain prohibitions or restrictive measures in the financial sector against certain individuals, entities or groups in relation to the fight against the financing of terrorism. This law is being assorted with a Grand-Ducal regulation of application dated 29 October 2010, which was published in the Mémorial A, n° 196, dated 3 November 2010.

Context

This significant update of the AML Luxembourg legislation must be regarded as a direct follow-up of the Luxembourg FATF mutual report on Luxembourg issued on February 2010, pursuant to which the FATF reporters had highlighted a number of insufficiencies in the Luxembourg legislative arsenal at date. Those comments and update requests were immediately taken into account by the Luxembourg authorities by the enactment of a Grand-Ducal Regulation of 1 February 2010. That immediate response was however insufficient to cover the full scope of necessary amendments and a more...