FATF Report highlights major gaps in global response to Proliferation Financing and Sanctions Evasion
A new FATF report released on 20 June 2025 reveals significant weaknesses in the global financial system’s ability to counter the financing of weapons of mass destruction (WMD).
Despite the serious threat, only 16% of countries evaluated have shown strong effectiveness in implementing targeted financial sanctions under UN Security Council resolutions.
The report highlights that both public and private sectors need to urgently improve their technical compliance and enforcement efforts, as current gaps allow proliferators to exploit the system.
Understanding the term ‘Terrorism’: A complex history and varied meanings
The word “terrorism” is everywhere in the news today, but have you ever stopped to think about where this term comes from and what it really means?
Who benefits from AI in Money Laundering in Europe: The Organised Criminals or the AML Services?
The rapid rise of artificial intelligence (AI) is reshaping many areas of our lives, not least the complex and critical field of financial security. A recent study explores how AI is changing the fight against money laundering across Europe. The research provides compelling evidence on whether AI primarily supports anti-money laundering (AML) efforts or if it inadvertently aids organised criminals by empowering their schemes.
The study examines data from 2017 to 2023 across 19 European countries, using a combination of AI adoption metrics, governance quality indicators, and economic variables. Its findings reveal a nuanced picture: while AI adoption generally improves AML performance, too much reliance on AI can introduce new vulnerabilities that criminals may exploit. This dynamic creates a technological tug-of-war where both sides leverage AI for their purposes, making the battle for financial integrity increasingly complex.
Luxembourg updates its national money laundering risk assessment
Luxembourg has completed its 2025 National Risk Assessment (NRA 2025) on money laundering (ML), under the direction of the Ministry of Justice and the coordination of the Comité de prévention BC/FT.
This update builds on previous assessments (2018 and 2020), using data from 2020 to 2023, and focuses specifically on ML risks, with a separate assessment for terrorist financing to follow.
The main aim is to adapt national understanding and management of ML/TF risks in line with evolving threats, allowing authorities and professionals to prioritize resources effectively and implement a risk-based approach.
Luxembourg Reports Ongoing Progress in Combating Financial Crime
Regulatory Framework and Supervision
Luxembourg has implemented comprehensive measures to combat money laundering and terrorist financing, with the Administration de l’enregistrement, des domaines et de la TVA (AED) playing a crucial role in supervising non-financial sectors.
The AED’s Financial Crime Division, staffed by 17 professionals (p.259), focuses on prevention through guidance, conferences, document reviews, and on-site inspections of professionals under its supervision.
Luxembourg also maintains a registry of trusts and fiduciary arrangements in accordance with the law of July 10, 2020, providing transparency regarding beneficial owners.
