In a few years, anti-money laundering and countering the financing of terrorism (AML/CTF) has become a key issue for many professionals established in Luxembourg.

From an operational point of view, it is difficult to have a full picture of the regulatory framework and consequently of the measures that shall be implemented.

To better understand the legal framework and the philosophy of AML/CTF, it is necessary to bear in mind the following idea: the investigation of AML/CTF offences is not the sole responsibility of the judicial authorities. The legislator requires professionals to actively contribute to the detection of AML/CTF offences at the risk of being held liable in case of failure.

Each professional concerned shall reach the following conclusion:

– it is crucial to implement the required means to fight money laundering effectively even if this represents substantial operating costs;

– non-compliance with AML/CTF regulation can have serious financial, reputational and even criminal consequences.

If the fight against money laundering were to be summed up in a single sentence, the following quote would fit perfectly “If you think compliance is expensive, try non-compliance” (Mr. Paul McNulty, former US Deputy Attorney General).

The topics discussed below provide guidance on the regulation, as well as on some operational aspects to be implemented by professionals subject to AML/CT obligations.