Consolidated assessment ratings & Luxembourg’s measures to combat money laundering and terrorist financing

The FATF has published its latest updates to its Consolidated assessment ratings together with the publication of the Mutual Evaluation Report of Luxembourg on progress in strengthening measures to tackle money laundering and terrorist financing.
The updated Consolidated assessment ratings provide an up-to-date overview of all assessed countries concerning the effectiveness and technical compliance with the FATF Recommendations, using the FATF Methodology together with the FATF 4th Round Procedures. These ratings should be read in conjunction with the detailed Mutual Evaluation Report. All these documents are available on the FATF website.
The current characteristics on both the effectiveness of AML/CFT systems, as well as technical compliance with the FATF Recommendations of Luxembourg are the following:
#### Effectiveness Ratings
Note: Effectiveness ratings can be either a High-HE, Substantial-SE, Moderate-ME, or Low-LE, level of effectiveness.
| Jurisdiction | Report Type | Report Date | Assessment body/bodies | IO1 | IO2 | IO3 | IO4 | IO5 | IO6 | IO7 | IO8 | IO9 | IO10 | IO11 |
| ——————————————————————————————————————– | —————— | —————— | ————————– | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——– | ——– |
| Luxembourg | MER | Sep.23 | FATF | SE | SE | ME | ME | SE | SE | ME | ME | SE | ME | ME |
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#### Technical Compliance Ratings
Note: Technical compliance ratings can be either a C-compliant, LC-largely compliant, PC-partially compliant or NC-non compliant. Changes are highlighed in bold & italic, representing either up- or downgrades compared to the last report date, as summarized at the right end of the table.
| Jurisdiction | Report Type | ReportDate | Assessment body/bodies | R.1 | R.2 | R.3 | R.4 | R.5 | R.6 | R.7 | R.8 | R.9 | R.10 | R.11 | R.12 | R.13 | R.14 | R.15 | R.16 | R.17 | R.18 | R.19 | R.20 | R.21 | R.22 | R.23 | R.24 | R.25 | R.26 | R.27 | R.28 | R.29 | R.30 | R.31 | R.32 | R.33 | R.34 | R.35 | R.36 | R.37 | R.38 | R.39 | R.40 | #upgrades | #downgrades |
| ——————————————————————————————————————– | —————— | —————— | ————————– | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——- | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ——– | ————- | ————— |
| Luxembourg | MER | Sep.23 | FATF | C | C | C | LC | C | LC | LC | PC | C | C | C | C | C | C | LC | C | C | C | C | C | C | C | C | LC | C | C | C | C | C | LC | C | LC | LC | C | LC | LC | C | C | C | LC | | |
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#### Luxembourg’s Mutual Evaluation Report, September 2023
This report evaluates Luxembourg’s AML/CFT measures as of November 2022 and provides recommendations for improvement. Key findings include improvements in AML/CFT measures, a good understanding of risks, and effective cooperation with international partners. However, there is a need for more focus on money laundering investigations, asset recovery, and supervision of non-profit organizations. The report suggests actions such as strengthening investigations, enhancing capacity for asset management, improving understanding of terrorist financing risks, and applying a risk-based approach to supervision. Luxembourg shows strong technical compliance with FATF standards, but the effectiveness of recent reforms varies.
No re-ratings were made.