Circular Letter ST.11-0306 — Overhaul of the Balance of Payments Data Collection System

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.bop@bcl.lu Ref.: ST.11-0306 Luxembourg, May 13, 2011 Circular Letter To all credit institutions and to the financial services of the Post and Telecommunications Enterprise Subject: Overhaul of the balance of payments data collection system

Ladies and Gentlemen,

We have the honor to refer to the data collection system for the compilation of the balance of payments and the international investment position of Luxembourg to inform you of the entry into force of the modifications made to the data collection.

1 Introduction

Since January 2002, the BCL has ensured, jointly with the Central Service for Statistics and Economic Studies (STATEC), the collection and compilation of the balance of payments for Luxembourg.

Since the implementation of the data collection system in 2002, the two compilers have introduced several modifications and simplifications to the initial reporting instructions addressed to credit institutions and the financial services of the Post and Telecommunications Enterprise. Thus, the latest modifications were introduced via BCL Circular 2007/210 and Circular Letter 09/1055 dated December 15, 2009. These changes aimed to progressively move from a data collection system based on payment declarations with indication of their economic nature to a system based on direct declarations and surveys.

In this context, we have the honor to inform you that the BCL has finalized its last preparations to dismantle the old system based on payments and their economic nature. Thus, from January 2012, credit institutions and the financial services of the Post and Telecommunications Enterprise will no longer be obligated to report the economic nature of payments on behalf of third parties.

Consequently, reporters will no longer be required to maintain the computer and organizational systems necessary to collect the information essential to determine the economic nature of operations carried out by their resident clientele.

2 New principles of balance of payments collection

The new data collection system, based on direct declarations and surveys, implies the transmission of statistical data by credit institutions and the financial services of the Post and Telecommunications Enterprise. Thus, credit institutions will be required to report certain elements of their profit and loss account.

This collection is mandatory from October 2011 for the reference period of September 2011.

Credit institutions and the financial services of the Post and Telecommunications Enterprise will be obligated to transmit cross-border payments executed on behalf of resident clientele without indication of the underlying economic nature of the transaction. This collection is mandatory from February 2012 for the reference period of January 2012.

3 Legal framework and reporting instructions

The obligations specific to credit institutions and the financial services of the Post and Telecommunications Enterprise are detailed in Regulation 2011/7 of April 4, 2011 of the Banque Centrale du Luxembourg published on May 13, 2011

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.bop@bcl.lu in the Mémorial A. The Banque Centrale du Luxembourg regulation as well as all annexes are directly accessible via the BCL website under the sections «Publications» and «Regulatory Reporting».

For all information concerning the application of this circular letter, please contact the External Statistics section directly (email reporting.bop@bcl.lu).

Please accept, Ladies and Gentlemen, the assurance of our perfect consideration.

BANQUE CENTRALE DU LUXEMBOURG
Germain Stammet Serge Kolb
Head of External Statistics Section Director