Global and Luxembourgish News 08.-18. September 2025
Week 37: This week saw central banks make their first moves toward easing while concerns around competitiveness and political influence deepen globally. Luxembourg regulators imposed penalties and signalled growing scrutiny over financial crime and monitoring.
Luxembourgish News
Spuerkeess Fined Nearly €5 Million Over Monitoring Failures in Caritas Case
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Luxembourg’s regulator imposed a fine of nearly €5 million on Spuerkeess following an investigation into failures in transaction monitoring systems tied to the Caritas fraud scandal. The CSSF noted that the deficiencies involved anti-money laundering and counter-terrorism obligations. While Spuerkeess accepted the sanction and affirmed steps to strengthen controls, the regulator emphasised that the fine does not imply direct liability in the fraud itself. The case has reignited scrutiny over the robustness of internal controls in Luxembourg’s banking sector. This marks a continuation of regulatory pressure to ensure that banks can detect and prevent illicit financial flows
Source: Rtl Today
Change in Money Market Fund Reporting Method by CSSF
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As of 1 September 2025 Luxembourg’s CSSF changed the method for Money Market Fund (MMF) reporting. Reports must now be submitted through designated channels, including XML-in-ZIP file format, at no charge. The change is intended to streamline regulatory oversight, improve consistency, and reduce reporting friction for fund managers. It reflects broader EU and Luxembourg regulatory trends toward greater transparency and standardised reporting. The CSSF stresses that these changes will help in risk monitoring and comparability across funds. Fund managers are adapting to the new system amid discussion over its implementation challenges.
Source: CSSF
Global News
U.S. Fed Cuts Rates, Signals More Easing Ahead
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The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 4.00-4.25 %, marking its first reduction since December 2024. Most officials projected two more rate cuts for the remainder of 2025, citing rising risks in the labour market and slowing growth. Only Stephen Miran dissented in favour of a larger 50 basis-point cut. Inflation remains elevated, with projections for year-end inflation still above target and unemployment expected to edge up. Markets reacted with mixed signals, with equities rallying while bond yields showed volatility
Source: Reuters
EU Warned: Falling Behind on Growth, Competitiveness
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Mario Draghi has issued a warning that the European Union is falling behind its global rivals due to slow implementation of reforms and insufficient investment. He notes that only about 11 % of the recommendations in his competitiveness report have been implemented. Key challenges include digital infrastructure, energy costs, and limited industrial policy support. Draghi emphasised that political inaction and bureaucratic inertia are undermining Europe’s ability to respond to global pressures. The warning has renewed debate on how to accelerate reform without compromising stability.
Source: Reuters
Hong Kong Mirrors Fed with Rate Cut
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The Hong Kong Monetary Authority cut its base interest rate by 25 basis points to 4.50 %, following the U.S. Fed’s move. The cut was its first since December and is closely tied to the peg between the Hong Kong dollar and the U.S. dollar. The measure aims to ease pressure in the property market and support broader economic activity. Authorities stressed that while financial conditions remain stable, the city will monitor inflation and capital flows carefully given external risks. Markets welcomed the move as aligning Hong Kong more closely with global easing trends.
Source: Reuters
