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      What has been the impact of the introduction of automatic exchange of information on Luxembourg’s private banking client base?

      What has been the impact of the introduction of automatic exchange of information on Luxembourg’s private banking client base?
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      Private banking clients are free to have an account in the country of their choice and choosing Luxembourg is a positive decision driven by the quality of cross-border advice combined with the benefits of being in the heart of the Eurozone. They entrust us with their investments in the full knowledge that banks operating in Luxembourg demonstrate a clear commitment to compliance.

      In the past, some clients took advantage of banking secrecy to hold undeclared accounts.  While some clients who regularised their undeclared accounts chose to close their accounts in Luxembourg altogether, many decided to stay and continue to benefit from the cross-border expertise their Luxembourg private bank has to offer.

      The gradual abolition of tax secrecy has accelerated an ongoing shift in the client base of Luxembourg banks. While there have been outflows of mass affluent clients from neighbouring countries (specifically in the wealth bracket below 500,000 EUR), this has been compensated by an inflow of international HNWI and UHNWI clients. Indeed, clients with assets of over 5 million EUR today account for 67% of total assets under management in private banking (vs. 51% in 2008).  

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