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One of the key principles of Luxembourg financial regulation is the obligation of professional secrecy (often referred to as the bank secrecy, the «Professional Secrecy Obligation») laid down in Article 41(1) of the law dated 5 April 1993 on the financial sector, as amended (the «1993 Financial Sector Act»). Outsourcing arrangements and, in particular, IT outsourcing operations which can lead to the disclosure of confidential data and thus to a potential breach of the Professional Secrecy Obligation are subject to rather strict legal conditions.
On 29 July 2016, the Ministry of Finance introduced the draft law no. 7024 (the «Law Proposal») which offers wider possibilities for financial institutions to outsource activities as it enlarges the group of potential...
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