Luxembourg to Include Crypto Exchanges in FIU Alert System
2026-08-05 12:51
Odaily News: Luxembourg has passed a new law authorizing the Financial Intelligence Unit (FIU) to send cross-institutional fraud alerts to traditional banks and cryptocurrency exchanges, with the relevant measures taking effect on August 8. The bill, numbered 8722, requires cryptocurrency exchanges operating in Luxembourg to receive alerts in sync with banks and payment institutions.
The bill aims to close the loophole that allows fraudulent funds to move rapidly between traditional financial institutions and digital assets. Under previous rules, banks could only block transactions of flagged accounts within their own systems and were unable to notify another financial institution or cryptocurrency exchange to prevent funds from entering or leaving.
Max Braun, head of Luxembourg's FIU, stated that incorporating cryptocurrency exchanges into the cross-departmental alert system will make it more difficult to cash out from flagged accounts. According to data from Luxembourg's Ministry of Justice, police recorded 6,382 fraud cases in the country in 2024, and financial practitioners submitted more than 18,000 reports of fraud and scams.
The bill aims to close the loophole that allows fraudulent funds to move rapidly between traditional financial institutions and digital assets. Under previous rules, banks could only block transactions of flagged accounts within their own systems and were unable to notify another financial institution or cryptocurrency exchange to prevent funds from entering or leaving.
Max Braun, head of Luxembourg's FIU, stated that incorporating cryptocurrency exchanges into the cross-departmental alert system will make it more difficult to cash out from flagged accounts. According to data from Luxembourg's Ministry of Justice, police recorded 6,382 fraud cases in the country in 2024, and financial practitioners submitted more than 18,000 reports of fraud and scams.
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