Based in Germany and Luxembourg, Dury Consult specialises in advising individual subsidiaries in the financial sector. Photo: Silke Brenner Photographie

Based in Germany and Luxembourg, Dury Consult specialises in advising individual subsidiaries in the financial sector. Photo: Silke Brenner Photographie

In Luxembourg’s fund and banking industry, data protection is no longer just a regulatory checkbox. It has become a key competitive advantage.

More than just compliance: why data protection is a business imperative

Financial institutions handle vast amounts of sensitive data, often flowing across international group structures and complex contractual frameworks. Non-compliance with the General Data Protection Regulation (GDPR) or the upcoming AI Act not only leads to significant fines but can also severely damage investor and customer trust.

Data transfers: the silent risk in global finance

One of the most pressing challenges in financial data protection is ensuring lawful data transfers within multinational corporations. Many banks and fund management companies in Luxembourg are part of international groups where personal data is shared across entities. Navigating this landscape requires a transparent mapping of data flows and robust legal safeguards. Binding corporate rules (BCRs) and standard contractual clauses (SCCs) are crucial tools to ensure GDPR-compliant data transfers, but their correct implementation is often underestimated.

The risk increases when dealing with third-party providers such as portfolio managers, transfer agents or paying agents. Standard contracts may include outdated data protection clauses that require careful review and adaptation to evolving regulations. Financial institutions must proactively assess whether their external partners uphold the same stringent security and compliance standards.

From legal obligation to competitive advantage: making data protection work for you

Data protection should not be treated as an isolated compliance issue but as an integral part of a broader risk management strategy. Financial institutions that embed data protection within their governance frameworks can turn compliance from a burden into a market advantage.

Regularly updating policies, conducting in-depth risk assessments, and training employees are essential steps in mitigating risks and maintaining regulatory readiness.

How to support your data protection strategy

serves as external data protection department, offering premium DPO services tailored to the unique needs of the financial sector with 24/7 availability. Their team consists of lawyers, business scientists and IT specialists with extensive professional experience in companies and corporate groups. Their expertise ensures that institutions not only meets compliance requirements but also leverages data protection as a strategic advantage.

To strengthen your data governance and stay ahead of regulatory developments, consult 

For more information, contact Dury Consult GMBH at .

This promotional article was written by Dury Consult GMBH as part of the company’s membership with the Paperjam Club. If you wish to become a member of the Club, contact us at .