New Luxembourg Framework For Restrictive Measures In Financial Matters

Luxembourg enhances the enforcement in its territory of international sanctions adopted at national, European and international levels.

The Law of 19 December 2020 relating to the implementation of restrictive measures in financial matters entered into force on 27 December 2020. It implements in Luxembourg restrictive measures in financial matters adopted at UN and EU levels against certain States, persons, entities and groups ("Law"). The Law repealed the Law of 27 October 2010, the scope of which was limited to terrorist financing. In a nutshell, international sanctions resulting from UN and EU restrictive measures will be implemented in Luxembourg through Grand Ducal regulations. They have to be complied with by Luxembourg citizens and legal entities as well as by other persons and entities operating in Luxembourg. Severe sanctions may apply in the event of non-compliance.