Finance minister Yuriko Backes (DP) last month introduced a draft law in parliament to establish the legal framework for a sanctions committee. This includes representatives of the ministries of finance and justice as well as the financial centre (CSSF) and insurance (CAA) regulators, tax authorities and the financial intelligence unit.
Lawmakers on Monday discussed plans for the committee as Luxembourg is grappling with international sanctions slapped on Russian entities and individuals over the country’s invasion of Ukraine.
Backes during an interview with Radio 100,7 on Monday said that Luxembourg is taking the sanctions seriously but did not reveal the amount of assets held in the grand duchy that have been frozen.
The Luxembourg central bank earlier this month said Russian Federation residents had made deposits worth €2.6bn with Luxembourg banks as of the end of 2021. At least 12 oligarchs, including individuals subject to EU sanctions, are listed as of some 90 Luxembourg companies.
France at the end of January had said it was drawing up a list of assets owned by Russian oligarchs, including yachts and luxury cars that can be seized under EU sanctions.
But Luxembourg ministers on 2 March said the government does not have a list of data such as “nationality, income or even potential links with foreign countries or governments” of persons residents or active in the grand duchy.
The committee, which has existed in a different form since 2010 but would be given a new legal framework, allows for better cooperation between authorities to monitor the implementation of restrictive measures. The draft law follows a recommendation by the Financial Action Task Force, an anti-money laundering and counter-terrorist financing watchdog that is due to carry out a review of Luxembourg this year.
Still up for discussion under the plans proposed by Backes is the inclusion of the public prosecutor’s office in the committee, suggested by members of the opposition.
Only last week parliament met with Claude Marx, director general of the CSSF to discuss the .
Around €4bn in funds out of €900bn managed by Luxembourg banks are exposed to Russia, with another €19bn out of €5.6trn in assets under management in the fund industry concerned, Marx had said.
Members of parliament during their meeting with Marx had suggested that Luxembourg should have a separate anti-money laundering authority, similar to Tracfin in France, a unit within the finance ministry that fights illegal financial operations, money laundering and terrorism financing.
Marx did not comment on whether such an authority is needed, minutes from the meeting show, but said that Luxembourg has an active public prosecutor’s office.
Updated on 15 March at 3.55pm to clarify that a sanctions committee exists since 2010 but will be given a new legal framework under the 2022 draft law.