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» Banking Secrecy
» Fiscal Secrecy Laws
» Rules on Money Launderring
Banking Secrecy
Luxembourg has a very strict and broad legislation aimed at challenging both national and international criminal activities. But the art. 458 of the criminal code and the banking law of 5th April 1993, incorporate the basic rules on banking secrecy. There are also specific provisions regarding the flow of information from financial institutions to the regulators on the one hand, and to the parent companies of banks set up in Luxembourg on the other.
In particular, banks are only authorised to communicate information relating to the credit portfolio to their foreign parent company. They cannot transmit information relating to bank deposits received by specific clients.
Fiscal Secrecy
Since 24 March 1989, tax secrecy is governed by a law that limits the powers of the Luxembourg tax authorities in matters of gathering financial information on taxpayers from financial institutions or intermediaries for the purpose of taxing resident or non-resident investors.
Except for matters concerning transfer tax and inheritance duties, the tax authorities cannot request any information on a taxpayer from the following sources:
- Banks and other financial institutions
- Other professionals in the financial sector, such as brokers
- Holding companies
- Investment funds
Rules on Money Laundering
Luxembourg legislation contains provisions preventing the financial system from being used to launder criminal money. The relevant EU Directive 91/308/CEE dated June 10, 1991 on money laundering specifies in particular the professional duties of persons intervening directly or indirectly in the investment of capital.
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