(Delano) Luxembourg’s status as a financial centre exposes it to the use of financial services for terrorist financing, indicates a report by the justice ministry.
The ministry’s report, funded by the EU’s pandemic recovery plan NextGenerationEU, states that basic financial products offered by Luxembourg are not riskier than those offered elsewhere. But the grand duchy is exposed to a higher chance of misuse due to the number of entities providing the services.
When it comes to lone actors and small cell operations, the danger is rooted in the exploitation of financial products to collect, transfer and spend small amounts of money for terrorist financing purposes. This concerns basic financial services offered by retail and business banking, payment institutions and e-money institutions.
