2.2.7 Luxembourg 
Luxembourg being a member of the FATF, it should implement the FATF recommendations. In Lux- 
embourg, ML is punishable according to Art. 506-1 Criminal Code“. The text of Art. 506-1 Criminal 
Code is very long, hence it can be found in Annex D below, in French (updated as of January 1, 2016). 
Although the article is very long, there is no tax crime listed as predicate offence to ML in Art. 506-1 
Criminal Code. 
The existing law on tax fraud is $ 396 para 5 of the “loi générale des impôts”, which reads as follows: 
« $i la fraude porte sur un montant significatif d'impôt soit en montant absolu soit en rapport avec 
l'impôt annuel dû et a été commise par l'emploi systématique de manoeuvres frauduleuses tendant à 
dissimuler des faits pertinents à l'autorité ou à lui persuader des faits inexacts, elle sera punie comme 
escroquerie fiscale d'un emprisonnement d'un mois à cinq ans et d'une amende de cinquante mille 
francs à un montant représentant le décuple des impôts éludés. » 
The minimum sentence being one month, it appears that the definition according to Art. 3 point (4) (f) 
  
of the 4* AMLD seems not to be met. The interpretive note to FATF recommendation 3 seems not to 
be implemented relating to tax crime as predicate offence to ML. 
Practitioners expect *(...) that in the course of implementation of AMLD IV, Luxembourg will take 
specific legal measures (as foreseen in CSSF Circular 15/609) to ensure that tax fraud as a predicate 
offence is included and thereby render punishable money laundering of tax fraud benefits.” 
The next mutual evaluation by the FATF for Luxembourg is scheduled to take place in 2020/21. It will 
be interesting to see if tax crimes are predicate offences to ML by then and how this will be assessed. 
  
€ The Criminal Code is available in French from http://www.legilux.public.lu/index.html, accessed on April 10, 
2016. 
$ As introduced by the « Loi du 22 décembre 1993 sur l'escroquerie en matière d'impôts », available from 
http://www.legilux.public.lu/rgl/1993/A/2024/1.pdf, accessed on April 10, 2016. 
* See the text published on the “Fourth Anti-Money Laundering Directive and Wire Transfer Regulation" by 
André Hoffmann of the law firm Elvinger, Hoss & Prussen, available from http://www.ehp.lu/legal-topics/legal- 
  
topics-by-areas-of-expertise/banking-insurance-and-finance/banking-insurance-and-finance-detail/article/fourth- 
  
anti-money-laundering-directive-and-wire-transfer-regulation-1/, accessed on April 10, 2016. The Circular by 
the Commission de Surveillance du Secteur Financier (CSSF) that is mentioned 1n the law firm's text is available 
from http://www.cssf.lu/fileadmin/files/Lois reglements/Circulaires/Blanchiment terrorisme/cssf15 609eng.pdf, 
accessed on April 10, 2016. 
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