Protection of Financial Privacy
"Banking secrecy" (or rather "professional confidentiality" for bankers), which is comparable to medical confidentiality, was neither invented by, nor is it unique to, Luxembourg. It exists in many other European and non-European countries. Its purpose is to protect the privacy of the client.
However, banking secrecy is far from being absolute.
Laws relating to the fight against money laundering and terrorist financing require all participants in the financial sector to make a thorough check of the identity of a client or the beneficial owner of any asset before doing business with them or executing a transaction for them. It is impossible to open anonymous bank accounts.
Luxembourg applies current OECD standards on exchange of information on demand and moved, on 1 January 2015, to automatic exchange of information as regards clients residing in other EU countries. Also, Luxembourg has agreed to the extension of the scope of the Directive which includes the automatic exchange of tax information on savings, income from trusts, funds, foundations, and certain life assurance products.