Luxembourg has classified cryptocurrency firms as high-risk for money laundering in its latest national risk assessment report. The 2025 report by the Financial Action Task Force (FATF) highlights that the country’s banking sector is vulnerable due to its international clientele and cross-border transactions.
The FATF recommends that the country intensify its efforts to curb illegal financial dealings and to foster trust. In concordance, Luxembourg’s Administration de l’Enregistrement, des Domaines et de la TVA (AED) has expanded anti-money laundering (AML) and counter-terrorist financing (CFT) reporting. This will provide more oversight over all financial services within the country.
The move reflects Luxembourg’s commitment to regulatory compliance and oversight across the financial sector.
