Luxembourg Compliance & Financial Crime Market Trends
Luxembourg remains a prominent hub for private debt, private equity, real estate, and renewable energy. From a regulatory perspective, 2023 witnessed a heightened focus on Environmental, Social, and Governance (ESG) factors, driven by regulations such as SFDR (Sustainable Finance Disclosure Regulation) and the EU (European Union) Taxonomy. This emphasis prompted increased transparency and measurable ESG integration. Lastly, Financial Crime remains a key trend, with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements still evolving.
In 2023, we observed a growing trend in hiring candidates with strong regulatory knowledge, particularly in private debt-related alternative investment funds. There was also an increase in companies seeking candidates with exposure to ESG. Additionally, there is still a demand for strong Financial Crime professionals to take on the RC (Responsable du Controle) positions, as advised by the CSSF (Commission de Surveillance du Secteur Financier’s). The increased demand for these specific skill sets has resulted in more counteroffers, and the strongest candidates typically undergo three to five interviews with different financial institutions simultaneously, making it highly competitive to capture the best talent.
Furthermore, with Luxembourg experiencing three indexations last year, inflation has led to higher salary expectations, posing more challenges for talent attraction and retention.
In 2024, we anticipate that the number of Alternative Investment Fund Managers (AIFMs) will continue to grow significantly in Luxembourg, consequently increasing the demand for senior hires, such as Compliance Conducting Officers hires, in the initial months of the year before gradually expanding those teams. In Luxembourg, in-depth AIFM regulatory knowledge, strong Financial Crime knowledge, and experience with ESG will continue to be the sought-after skill set that companies will be looking for.
For tailored solutions to your hiring needs in the current Luxembourg Compliance & Financial Crime market, contact Isabel today. Her expertise and insights can guide you through navigating the current landscape and securing the right talent for your team.
Isabel Anchebe
Associate Director, Head of Compliance, Europe
T: +44 (0) 20 3889 5758 E: ianchebe@danosassociates.com
