Home > Business > LUXHUB Launches Central Electronic Data Retrieval API To Support Luxembourg’s Credit Institutions

LUXHUB Launches Central Electronic Data Retrieval API To Support Luxembourg’s Credit Institutions

As of 25 March, 2020, a law has been established around the central electronic data retrieval system (CEDRS) related to payment and bank accounts identified by IBAN, as well as safe-deposit boxes, held by credit institutions in Luxembourg.

Photo: Jacques Pütz, CEO of LUXHUB / Credits © LUXHUB

In accordance with the CSSF Circular 20/747, credit institutions are required to put in place a secure data file transfer via API towards the CSSF to enable the identification of any natural or legal person holding or controlling payment or bank accounts identified by IBAN or safe-deposit boxes by mid-September 2020.

The Luxembourg banking ecosystem must ensure permanent, automated and confidential access for the CSSF to this data file.

With tight EU-wide deadlines, as part of the AML5 directive – which is partially implemented through the CEDRS – LUXHUB is deploying all its efforts and resources in order to support banks throughout this new compliance journey.

This has resulted in the development of the new CEDR API, which builds upon LUXHUB’s established API Gateway and Service Desk. Furthermore, the CSSF’s decision to impose an API route to compliance falls squarely within LUXHUB’s overarching vision of catalyzing and empowering digitalization within Luxembourg’s financial ecosystem.

“LUXHUB’s CEDR API will enable financial institutions to meet the tight deadline imposed by the EU and gain compliance efficiently and effectively,” says LUXHUB’s CEO Jacques Pütz. “We ensure security at the highest level and are ready to build upon the successful development and implementation of our API Gateway and Service Desk to deliver a seamless service and complete solution.”

Acting as a complete end-to-end compliance solution, the CEDR API will see the company – recognized as Europe’s 2nd largest Open Banking hub – continue its compliance partnership with many of Luxembourg’s leading financial institutions.

With efforts firmly underway, LUXHUB’s CEDR API will provide partner institutions with a clear head start on their compliance path. An efficient route to compliance.

LUXHUB emerged from the combined vision of four major Luxembourgish banks – Banque Raiffeisen, BGL BNP Paribas, POST Luxembourg and SPUERKEESS – to become a key catalyst of the European financial industry’s evolution towards Open Banking.

The fintech’s purpose is to empower the entire digital ecosystem to embrace the challenges and take advantage of the opportunities within Open Banking and Open Finance. In order to achieve this, LUXHUB has taken a structured approach in addressing the core challenges faced by banks and financial institutions during the initial phases of Open Finance.

First, there is compliance, then connection, and then collaboration. The state-of-the-art products have been developed to provide effective solutions for each of these aspects.

The content of this article reflects only the opinion of the author, LUXHUB.

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