The Grand Duchy of Luxembourg is creating a special department to combat money laundering. The corresponding decision was made by the country's parliament. This is reported by the Luxembourg Times .
The Luxembourg authorities decided to form a new unit after criticism from the Financial Action Task Force on Money Laundering (FATF) and the Council of Europe regarding the insufficient effectiveness of anti-money laundering measures.
The Directorate will report to the Duty, Property and VAT Registration Unit of the Luxembourg tax authorities. It will oversee the fight against money laundering and terrorist financing, as well as the “application of international financial sanctions” in various sectors, in particular real estate.
The law, supported by parliamentarians, says that the fight against money laundering will now receive no less attention from the authorities than “traditional administrative issues.”
According to Luxembourg Finance Minister Gilles Roth, the adoption of the law is a very important project to maintain the Grand Duchy's reputation as a financial centre.
For now, the department will create about 20 new positions. Gilles Roth emphasized that protecting the international image is more important than the costs of maintaining the anti-money laundering unit. The specific amounts allocated to support the department's work are not disclosed.
