News & Alerts

Meeting the Banking Needs of Alternative Investment Funds (AIFs)

Opening a bank account for an Alternative Investment Fund (AIF) or an unregulated fund structure has become increasingly complex. Stricter Commission de Surveillance du Secteur Financier (CSSF) requirements, enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, and multi-entity ownership structures now create delays that can stretch for weeks or months, making access to specialized institutional banking services essential.

FundBank is closing this gap.
The FundBank team working to meet AIF banking needs.

FundBank secures European credit institution license

FundBank (Europe) S.A. successfully activated its credit institution license for the European market earlier this year, marking a significant milestone in its journey to revolutionize the alternative investment fund ecosystem.  Unlike traditional banks where fund accounts are ancillary, our entire focus is on the AIF ecosystem.

Banking services we offer to AIFs in Europe

By securing this authorisation and expanding into the European market FundBank offers:

  • fast, secure and seamless onboarding with bank accounts issued within 10 business days after compliance approval
  • real IBAN accounts with custody, escrow, and prime brokerage options
  • regulatory confidence – FundBank is the most highly-regulated entity in Luxembourg, with 95% of assets held off-balance sheet with top-tier banks and is fully aligned with Luxembourg and EU rules
  • a client-focused ethos – our approach to customer service is informed by our roots in the wealth management industry and, as a result, our user experience is exceptional
  • market knowledge – we understand the Luxembourg market in depth, and we strive to be responsive to client needs and requests.

This dedicated model allows fund managers to meet operational needs quickly and confidently, without the bottlenecks of universal or depository banks.

FundBank’s role in Luxembourg’s AIF ecosystem

By securing this authorisation and expanding into the European market, FundBank (Europe) S.A. is able to contribute to the successful development of the alternative investment funds industry in Luxembourg by providing creative banking solutions and pioneering groundbreaking techniques, tailored to its clients.

Further insights from the Luxembourg market

To highlight this shift, a recent article in Delano detailed how Luxembourg financial institutions are adapting to the complex needs of Alternative Investment Funds (AIFs). In this comprehensive article, key trends in regulatory compliance, fund structuring, and cross-border servicing are explored.

Read the full article here
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