Banking and Financial Law

Whether by influencing policy, advising on implementation, or building consensus around new legal tools, the ABBL remains a driving force behind legal progress in the Luxembourg financial sector.

Strengthening Legal Certainty & Operational Flexibility

The ABBL’s legal work focuses on:

• Promoting legal clarity and certainty through standardized documentation.
• Encouraging contractual innovation to meet evolving financial needs.
• Assisting members in the implementation of complex legislation to ensure regulatory alignment without operational disruption.

This approach helps foster a legal environment that supports cross-border business, risk management, and sustainable growth.

Key Legal Initiatives

1. Standardized Facility Agreement Template

Developed in collaboration with member banks and legal professionals, this standardized contract aligns with international best practices while integrating local regulatory and tax specificities. It streamlines negotiations and facilitates cross-border financing involving Luxembourg entities.

2. Professional Payment Guarantee (PPG)

Introduced by the Law of 10 July 2020, the PPG is a uniquely flexible legal instrument under Luxembourg law. It provides:

• Enforceable guarantees tailored to portfolio risks or future claims.
• Legal certainty for synthetic securitizations and structured finance.
• A robust alternative to English-law guarantees post-Brexit.

The ABBL actively promotes the PPG’s adoption across interbank markets and institutional finance.

3. Law on Inactive Accounts and Dormant Assets

The ABBL has closely supported the implementation of new rules governing:

• Inactive accounts.
• Safe deposit boxes.

This includes helping members align with new requirements on identification, reporting, and transfer of dormant assets to the Caisse de Consignation, while ensuring smooth interaction with public authorities.