Actions To Take Regarding Circular 18/9: Insurers, Take Note

Luxembourg has recently completed its 2018 national risk assessment, which covers data from 2016–2017. This mandatory exercise was performed in preparation for the Financial Action Task Force (FATF) visit taking place in autumn 2020. The results from the assessment help clarify the money laundering and terrorist financing (ML/TF) risks the country faces, making it possible to coordinate national actions against ML/TF and to concentrate resources on high-risk areas. The regulator will check that identified risks are properly mitigated.

The Commissariat aux Assurances (CAA), Luxembourg's regulator for the insurance sector, classified the residual risk as "medium" overall, but "high" for life insurance companies. This is due to the size of this sub-sector, its very diverse product offering, and the intervention of intermediaries distributing higher-risk products that involve lots of transactions and that target foreign residents.