Luxembourg

Details

  • Industry: Financial Services, Fund Management
  • Type: KPMG information
  • Date: 2/1/2010

Cluster Munitions 

The Convention on Cluster Munitions that was signed in Oslo by 94 states in December 2008 enters into force on 1 August 2010.

The Convention has been ratified by the Luxembourg government through the law of the 4 June 2009 that prohibits all use, stockpiling, production and transfer of cluster munitions.  The law also explicitly prohibits all persons, businesses and corporate entities from knowingly financing cluster munitions. 

The legislated ban of the financing of cluster munitions will catapult this area of ethical and responsible investing to the agenda of all financial institutions operating in Luxembourg.   The law introduces prison sentences of between 5 to 10 years and fines of between €25,000 and €1,000,000 for persons who violate the law.

The law does not contain any stipulations on how to determine which companies are involved in cluster munitions, nor does it contain a definition of financing.  Financial institutions will need to look carefully at this issue and adopt and implement a clear policy to ban the financing of cluster munitions.

 

 

Sign up now

Subscribe to selected content and receive email alerts when new content is available for viewing on this site.

 

Already a member? Login

 

Not a member? Register