Private banks and fund firms in Luxembourg will soon have to make suspicious activity reports on a new system.

Luxembourg’s financial intelligence unit has acquired a new IT system that
became operational last month. The FIU has announced that this system allows
for the ‘e-filing’ of suspicious activity reports and is being tested in close
co-operation with the private sector. The reporting side of the system is to ‘go
live’ sometime in the summer months. A new online reporting form will also be issued,
although FIU Luxembourg has long been able to receive and process SARs in an
electronic format. 

Unusually for the European continent, reporting is required on activity
rather than on mere transactions – a ‘gold plated’ interpretation of the
European Union’s third directive on the subject of money-laundering. Elsewhere in
the EU, including the UK
where the authorities pretend otherwise, only transactions need be reported. 

The part of Luxembourg’s money-laundering law that makes the
jurisdiction different from its neighbours is Article 5 (co-operation requirements with the authorities) which
states that "professionals, their directors, officers and employees are
required to inform without delay, on their own initiative, the financial
intelligence unit of the office of the state prosecutor at the Luxembourg
district court when they know, suspect or have reasonable grounds to suspect
that money laundering or terrorist financing is being committed or has been
committed or attempted, in particular in consideration of the person concerned,
its development, the origin of the funds, the purpose, nature and procedure of
the operation."