The social and political climate towards these services is positive, online-banking is well implanted in Luxembourg.
Licensing procedure (CSSF, Ministry of Finance).
Administration and Infrastructure requirements.
Accounting and external audit.
- Pure online banking : According to article 8 of the LSF, a license is required. Indeed, the authorization shall be conditional on the production of evidence showing the existence of a share capital of EUR 8,700,000 which is subscribed, fully paid-up.
- Communication of banking information : According to article 29-1 of the LSF, the license for the activity of customer communication agent may be granted only to legal persons. It is conditional on the production of evidence of capital amounting to not less than EUR 50,000.
- Costs for getting a license : EUR 15,000 to be paid to the CSSF.
- Annual license : EUR 20,000 (communication of banking information) and from EUR 85,000 minimum to EUR 350,000 based on the total assets of the credit institution (Pure online banking) to be paid to the CSSF.
There are 153 banks in Luxembourg. Not all of them are providing online banking. Digitalization is an issue for small private bankers. Because of the banking secrecy they postponed investment in digitalization. Now that tax transparency is required, private bankers are investing massively in order to offer online banking to their clients.