Ethics and governance in the European Financial centers

The audit firm Deloitte and the Luxembourg Bankers’ Association (ABBL) published a brochure relating to the impact of compliance on financial institutions in Luxembourg.

They wished to ascertain how the banks and FSPs (Financial Services Professionals) in the Luxembourg financial centre had implemented the extensive regulatory changes made in the past 3 years.

One may find it strange that an auditor should publish with auditees all the more when auditees consider officially that offences such as forgery, use of forgery, false balance sheets, use of false balance sheets or unauthorised use of corporate property are offences with financial connotations which are confused with laundering for the sole purpose of applying exceptional powers to these vague offences.
The Luxembourg FIU did not agree with the ABBL's statements at the time of the debate relating to the transposition of the Second European Directive relating to AML.

Anyway, with such official publication (there are both logos on the cover page) Deloitte in Luxembourg appears unfortunately on auditees' side rather than on the controlling side, which is not a good thing fot the independence and the efficiency of auditors.

Auditors may discuss with auditees but shall not publish with them in any case. They may publish with the body responsible for the prudential supervision of companies of the financial sector (CSSF in Luxembourg) or the Financial Intelligence Unit (CRF in Luxembourg).

Documents

ABBL Report 2003
Press release Deloitte/ABBL
Brochure Deloitte/ABBL