Irish Luxembourg Chamber of Commerce (ILCC) Financial Services Event
Luxembourg, 11 February 2026
Luxembourg, 11 February 2026: The Ireland Luxembourg Chamber of Commerce (ILCC) yesterday hosted a High-Level Financial Services Event at the Banque de Luxembourg, bringing together more than 100 senior professionals from the banking, financial services, and regulatory communities to examine the effectiveness of Anti- Money Laundering (AML), Counter-Terrorist Financing (CFT), and Know Your Customer (KYC) regulation.
The event featured an expert panel comprising Richard Meads, Director of Business Decisions Limited; Brian Hayes, Chief Executive Officer of the Banking and Payments Federation Ireland and former Irish Government Minister; Jerry Gribic, Chief Executive Officer of the Luxembourg Bankers’ Association; and Yann Power, Governance and Compliance Specialist. Together, they explored the real-world impact of AML/CFT frameworks on financial crime prevention, regulatory compliance, innovation, and financial inclusion. The discussion was moderated by Joseph Huggard, Chairman of the ILCC.
Speakers highlighted that money laundering remains a major global challenge, with illicit financial flows estimated to exceed 2% of global GDP and linked to serious crimes such as drug trafficking, human trafficking, fraud, and terrorism. While governments have a strong mandate to address these threats, the panel emphasized that current regulatory approaches may not be delivering optimal results.
A key theme was the unprecedented regulatory model that places extensive compliance and information-gathering responsibilities on private sector institutions. Financial firms now bear substantial legal and reputational risks, including fines exceeding USD 1 billion, while incurring estimated global compliance costs of more than USD 180 billion annually. Despite this, it was noted that less than 1% of illicit funds are recovered worldwide, raising concerns about the efficiency and impact of current systems.
Panelists also warned of unintended consequences, including:
- De-banking of low-value or high-risk customers
- Barriers for entrepreneurs, startups, and small businesses
- Reduced access to regulated financial services for vulnerable groups
- Constraints on innovation in financial services
- New criminal opportunities, including AI-driven fraud, deepfake extortion, and illicit lending networks
The event concluded that current AML/CFT and KYC measures require a critical reassessment, with a focus on improving effectiveness, minimizing negative externalities, and ensuring better alignment between government objectives and private sector incentives. Participants agreed on the importance of formal analysis into systemic deficiencies, greater awareness of emerging criminal threats, and more efficient use of compliance resources to maximize societal benefit.
A full report of the event may be found here. Detailed discussion document with supporting research is also available.
