AML / CFT & Professional Conduct

Through advocacy, education, and coordination, the ABBL plays a central role in helping the banking sector remain vigilant, compliant, and proactive in the global fight against financial crime.

Safeguarding the Integrity of Luxembourg’s Financial Centre

As a leading international financial hub, Luxembourg hosts a high concentration of cross-border banking and private wealth management. This global reach increases exposure to financial crime risks, making robust AML/CFT frameworks essential.

AML/CFT efforts help protect:

• Reputation and credibility on the international stage.
• Investor trust and continued access to global capital markets.
• The integrity of regulated financial institutions.

The ABBL supports the sector’s alignment with international best practices, including FATF recommendations and EU legislation. It also contributes to:

• National AML strategies.
• FATF and MONEYVAL review processes.
• Cross-border collaboration with European and global banking associations.

Promoting Ethical Banking and a Culture of Compliance

AML/CFT is not just about meeting regulatory requirements—it’s about upholding ethical values and responsible banking practices. The ABBL actively promotes a compliance-first culture to help:

• Prevent abuse of the financial system for criminal purposes.
• Protect consumers, investors, and the broader economy.
• Reinforce Luxembourg’s position as a transparent and trusted jurisdiction.

This work is increasingly important as banks expand into sustainable finance, digital assets, and innovative services, all of which bring new risk profiles and compliance expectations.

Navigating a Complex and Evolving Regulatory Environment

Luxembourg-based financial institutions operate under a comprehensive and evolving AML/CFT legal framework, including:

• The EU AML Directives (4AMLD, 5AMLD, 6AMLD) and the EU AML Regulation.
• National laws and guidelines issued by the CSSF and FIU (Cellule de Renseignement Financier).
  In this context, the Public Private Partnership signed on 13 September 2022 with both authorities is crucial.

The ABBL supports its members by:

• Interpreting and clarifying new regulations.
• Publishing guidance notes and technical commentary.
• Engaging in dialogue with policymakers and regulators.
• Representing the banking industry in national and European consultations.

Practical Support for Operational Compliance

Complying with AML/CFT obligations—particularly in a cross-border context—requires significant operational effort. The ABBL supports member institutions through:

• Expert working groups focused on AML/CFT strategy and practice.
• Risk assessments and typology sharing across the sector.
• Practical guidance on Customer Due Diligence (CDD), transaction monitoring, and suspicious activity reporting.

The ABBL also promotes collaboration with RegTech and FinTech partners to deliver technology-driven compliance solutions—enhancing both effectiveness and client experience.