Luxembourg news: 2000 jobs lost due to end of bank secrecy?

According to an article on wort.lu, ending banking secrecy in Luxembourg could cost more than 2000 jobs.

“Luxembourg may have won support from fiscal authorities abroad for its decision to approve the automatic exchange of bank information on non-residents in 2015.

But, it will come at a heavy price to employment in private banking and beyond, according to analysts at Statec.”

“Statec predicts that 800 jobs alone will be lost in the banking sector through the associated hike in administration costs, particularly for IT. Of that number, around 200 jobs would be in private banking.”

“Following the introduction of the automatic exchange of information, 15 billion euros in assets under management could leave Luxembourg (about 5 percent of total assets under management).”

The “macro-economic impact analysis of automatic information exchange in financial products applied to Luxembourg” is available from Statec, the public statistics office.

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