Ethics and governance in the European Financial centers

The ALFI reported that Luxembourg-domiciled funds continued to attract positive inflows in the third quarter While eleven European countries recorded net outflows.

I hope professionals in Luxembourg are aware that the risk (money laundering and fraud) is growing as well in parallel.

The worst attitude would be to be self-satisfied of the grow of the center.

I am afraid this is the case. Most professionals can’t accept the evidence of failures in the system as presented to them. So they seek to shoot the messenger instead. Those who work in the sector want to deny the truth and issues although the evidence is beyond question. To protect the reputation in the short term everyone including the media agrees to hush up issues if any.

And therefore guys who do not behave well have no reasons to change because of the support, because of a complicit silence, because of what is called "pragmatism".

So there is a difference between the legal and regulatory framework and what is actually enforced. And where there are sanctions these are so little compared to other jurisdiction that there is no dissuasive effect at all.

As I already said when there are gaps between what is said and what is seen publicly, on knows when the lie starts but one ignores where it stops. The credibility collapses.

That's why the risk is definitely growing in parallel.

And I am sad of that for this center.