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Luxembourg

Banking for Luxembourg based structures

 

Luxembourg is Europe’s largest investment fund centre and ranks second globally after the United States, managing over €5 trillion in assets. It is a key hub for cross-border finance and a strategic gateway to the European Union.

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The Grand Duchy offers:

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- Political stability (AAA credit rating)

- Sophisticated legal framework (EU-based and highly specialised)

- Expertise in structuring financial vehicles, including:

  - Investment Funds: UCITS, Private Equity, and Alternative Investment Funds (AIFs)

  - Corporate Structures: Holding companies and Special Purpose Vehicles (SPVs) for securitisation, real estate, and corporate finance.

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This environment demands prompt and effective international banking access, our core area of expertise.

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Banking Facilitation Services

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Opening a corporate bank account for a Luxembourg-domiciled entity, whether a fund, SPV, or trust can be complex and time-consuming. We act as an expert advisory partner, leveraging deep industry relationships to streamline the process.

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Our services are designed to reduce non-chargeable time and maximise efficiency.

 

Services for Luxembourg Entities

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1.New Bank Account Establishment

​Fast-track multi-currency account opening (EUR, USD, CHF, etc.) via our network of 30+ international and offshore banks.

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2. Complex Relationship Pitching

​Expert file preparation and presentation to bank high risk committees, increasing approval speed and success.

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3. Dedicated SPV & Fund Banking

​Identification of banking partners tailored to AIFs and Securitisation SPVs

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4. Treasury & Liquidity Advisory

Guidance on multi-currency cash management, competitive interest rates, and FX/payment solutions

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5. Custody Solutions Facilitation

Support in securing Tier 1 custodians for asset protection, aligned with Luxembourg’s regulatory standards

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Legal Right to open accounts across the EU

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Under the Payment Institution Framework (PIF) and broader EU financial regulations, a Luxembourg-based entity is legally entitled to open and operate a bank account in any other EU member state. This right is protected by several key directives:

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  • Payment Accounts Directive (EU 2014/92)
    Guarantees access to basic banking services across the EU, regardless of the entity’s country of incorporation.

  • SEPA Regulation (EU No. 260/2012)
    Mandates equal treatment of IBANs from any SEPA country, prohibiting refusal of payments based on IBAN origin.

  • Geo-blocking Regulation (EU 2018/302)
    Prevents discrimination based on the location of the bank account or payment provider.

 

These regulations ensure that Luxembourg entities can benefit from banking services in other EU jurisdictions without being penalised for cross-border operations. Banks cannot refuse to open a basic account solely because the entity is based in Luxembourg. However, they may request evidence of genuine interest, such as operational presence or business activity in their jurisdiction.

This framework supports the strategic use of multi-jurisdictional banking setups, allowing Luxembourg entities to optimise onboarding speed, technology integration, and treasury management across the EU.

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Strategic Implications

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  • For tax residency and substance, having a local account may support the entity’s operational footprint.

  • For withholding tax refunds, VAT compliance, and corporate tax filings, local banking may simplify administration and reduce audit risk.

  • Licensing applicants (e.g. PSFs, fund managers) should expect to hold regulatory capital in Luxembourg.

  • Operational entities may use accounts in other EU countries, provided they meet substance and reporting requirements.


Get in touch with us today to learn more about how we can support you with your international banking requirements in Luxembourg.

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