# Bank of America opens Luxembourg branch in Europe funds push
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-11
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Bank of America opens Luxembourg branch in Europe funds push
Meta Description: Bank of America expands its European presence, hiring former BNP Paribas banker Benoit Nevouet to lead a newly established branch in Luxembourg to serve
URL: https://financedigest.com/bank-of-america-opens-luxembourg-branch-in-europe-funds-pushhtml

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LONDON (Reuters) – Bank of America has hired former BNP Paribas banker Benoit Nevouet to be the manager of a newly created Luxembourg branch as the U.S. lender seeks to grow its business in Europe, a senior executive at Bank of America told Reuters.

The opening of a branch in the small but wealthy country will [mean Bank of America can help clients such as investment](https://www.financedigest.com/the-era-of-passive-investing-is-waning-and-what-this-means-for-you.html "The era of passive investing is waning and what this means for you") funds with local bank accounts and other services, said Matthew Davies, head of the U.S. [lender’s global transaction services unit for Europe](https://www.financedigest.com/closing-the-funding-gap-how-alternative-lenders-the-secret-to-sme-survival-in-europe.html "Closing the funding gap: How alternative lenders the secret to SME survival in Europe"), Middle East and Africa.

Bank of America is first focused on bringing across existing clients which it served from a [partner](https://www.financedigest.com/anglo-gulf-trade-bank-partners-with-publicis-sapient-and-microsoft-to-launch-worlds-first-end-to-end-digital-trade-finance-bank.html "Anglo-Gulf Trade Bank partners with Publicis Sapient and Microsoft to launch world’s first end to end digital trade finance bank") bank in Luxembourg to its new branch, Davies told Reuters.

“We’ll then start to add new clients, there is demand for us to bring on around 100 entities per month,” he said.

Customers will include large companies, [investment funds and other non-bank financial](https://www.financedigest.com/mercury-fx-boosts-financial-crime-management-capabilities-with-trunarrative-platform-investment.html "Mercury FX boosts financial crime management capabilities with TruNarrative platform investment") firms, he said.

The U.S. bank is also hiring a dedicated [money laundering](https://www.financedigest.com/anti-money-laundering-mess-how-to-outsmart-villains-by-understanding-their-networks.html "Anti Money Laundering Mess? How to Outsmart Villains by Understanding Their Networks") reporting officer, as well as an initial handful of other support staff in functions such as compliance, risk and legal, to support the Luxembourg branch, Davies said.

In 2019, F&D magazine, an International Monetary Fund publication, listed Luxembourg, a tiny EU state of just 600,000 people, as a world-leading tax haven that [attracted as much foreign direct investment](https://www.financedigest.com/spains-la-liga-attracts-3-2-billion-investment-from-cvc.html "Spain’s La Liga attracts .2 billion investment from CVC") as the United States.

Its investment fund industry was in 2021 branded a [financial “black box” that helps people](https://www.financedigest.com/banks-need-to-digitise-financial-wellbeing-support-to-help-young-people-manage-through-this-recession.html "Banks need to digitise financial wellbeing support to help young people manage through this recession") launder illicit money and avoid tax, according to an investigation published in February 2021 whose findings were rejected by the EU nation.

Bank of America’s transaction services [business accounts](https://www.financedigest.com/controlling-your-business-cash-flow-with-effective-accounts-receivables-turnover-ratios.html "Controlling Your Business Cash Flow With Effective Accounts Receivables Turnover Ratios") for some 10% of the lender’s overall revenues, helping large multinational corporations with routine but vital products such as making payments and managing their cash.

(This story has been corrected to change attribution to F&D magazine from IMF in paragraph 7)

[(Reporting by Lawrence White; Editing by Mark Potter)](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)")


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