News & Insights

News & Insights

BCL Reporting: Outsourcing can be an effective solution for your business

06 June 2024
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In line with the Centralis ‘client first’ approach, we aim to share valuable insights to our clients. Here we take an in-depth look at BCL reporting and hear the views of Bertrand de Fays who leads our specialist Central Bank of Luxembourg (BCL) reporting.

Bertrand de Fays has been part of the Centralis team in Luxembourg for several years and is a key figure in the domain of BCL reporting. The Centralis BCL Reporting service primarily involves working in partnership with clients to prepare, reviewing, and ultimately sign off on BCL reports.


What is BCL Reporting?

The BCL oversees the collection of data, the compilation of monetary and financial statistics, the balance of payments and the international investment position in Luxembourg, as well as statistics relative to payment systems and instruments.

In Centralis’ context, the is BCL collecting statistical data from financial companies, securitisation vehicles, investment funds, money market funds, banks and insurance corporations.

The collection of relevant data is based on regulations of the Banque centrale du Luxembourg which are published in BCL circulars.


Understanding BCL reporting regulations

The specifics of BCL reporting regulations can often be intricate and challenging to navigate. Here are the main criteria and types of reports involved:

  1. Applicable Entities: Financial entities, investment funds and securitisation vehicles are all liable for BCL reporting. However, many entities are unaware of this requirement until they exceed the exemption threshold (which varies, depending on entity) and receive a notification from the BCL.
  2. Types of Reports: There are various types of reports depending on the entity’s activities and structure. Ensuring accurate and timely submission of these reports is crucial for compliance.


The case for outsourcing BCL reporting to Centralis:

  1. Expertise and Efficiency: “The team at Centralis has the expertise and knows exactly what information is required for the reports. This proficiency translates into significant time savings and reduces the hassle for clients.”
  2. Buffer Against Complexity: “Engaging directly with the BCL can be a time-consuming and complex process. Centralis acts as an intermediary, streamlining communication and ensuring that all regulatory requirements are met without burdening the client.”
  3. Cost-Effective Solutions: “Centralis has direct access to the BCL platform provider used for filing these reports. This cost benefit is passed on to our clients, making outsourcing not just a time-saver but also a cost-effective solution.”


Overcoming Challenges with Centralis

The primary challenges include understanding regulatory requirements and managing the detailed data required for reporting. “Centralis helps clients overcome these challenges by providing detailed guidance and support throughout the reporting process. We handle the complexities so our clients can focus on their core business operations.” comments Bertrand.

“In addition, at Centralis, we remain committed to supporting our clients through every regulatory requirement. Outsourcing BCL reporting not only ensures compliance but also frees up valuable resources for strategic business initiatives. If you have any questions or need assistance with BCL reporting, don’t hesitate to contact me, or our team of experts.”