LONDON (Reuters) – Bank of America (BAC.N) has hired former BNP Paribas banker Benoît Neveue as manager of its Luxembourg branch. Bank of America told Reuters.
Opening a branch in a small but wealthy country means Bank of America can help customers such as investment funds with local bank accounts and other services, said U.S. lenders in Europe, the Middle East and the Middle East. Matthew Davis, regional head of global trading services, said. Africa.
Bank of America will initially focus on attracting existing customers served by the new branch from its partner bank in Luxembourg, Davis told Reuters.
“Then we will start adding new clients. We need to get about 100 entities every month,” he said.
Customers will include large corporations, investment funds and other non-bank financial firms, he said.
The U.S. bank is also initially hiring a dedicated money laundering reporting officer and several other support staff for functions such as compliance, risk and legal to support its Luxembourg branch, Davis said. rice field.
In 2019, the International Monetary Fund listed Luxembourg, a small EU state with a population of just 600,000, as one of the world’s leading tax havens, attracting as much foreign direct investment as the United States.
According to a study released in February 2021, its investment fund industry will be branded in 2021 as a financial “black box” that helps people launder money illegally and avoid taxes. rice field.
Bank of America’s transactional services business accounts for approximately 10% of total lender revenue and helps large multinationals with mundane but important products such as payments and cash management. .
Reporting by Lawrence White Editing by Mark Potter
Our standards: Thomson Reuters Trust Principles.