Ethics and governance in the European Financial centers

A couple of days ago IMS Luxembourg published a press release.
The society is alive despite the lack of events in 2007.
There are new members (24 registered and 20 in the pipe) which is a good thing.
Unfortunately they did not change the areas of interest that are rather limited for a financial center as I already explained.
Especially areas like AML and ethics that are critical areas for CSR in the financial sector, are ignored to focus on money given.

Know more (french)

I went through the Société Générale's website to read pages relating to compliance, ethics and CSR

There is a very interesting page about tax havens to repudiate clearly the use of such financial centers: "Société Général has defined strict rules to avoid setting up in those countries considered to be tax havens in the OECD or blacklisted by the FATF."

But the last paragraph clearly cancels the commitment of the previous one : "However the group does not rule out working in these countries providing they already have an effective banking and financing sector that meet the economic needs of a local or international customer base, as is the case in Monaco for example."

The blacklist is empty and every country that is considered as a tax haven has anyway an effective banking and financing sector that meet the economic needs of a local or international customer base.

Tax havens are definitely supported by everyone despite official statements to repudiate them.

A bank cannot afford to be out of the business in a financial center including tax havens.



Banks have clear but pragmatic ethical rules.

Some people may disagree with my choice not to condone ethical issues: these people want to save brands' reputation.

That is the reason why the common attitude is not to tighten up the ship because of the reputation.

Self regulation of a profession (bankers, auditors) is agreement between fellow professionals to deny or hush up issues.

The consequence is that the root causes of these issues are never corrected and therefore the reputational risk is going on and even growing as dishonest professional are definitely not repudiated and may feel supported in their drifts.

This phenomenon is particularly visible and critical in small centers like Luxembourg, the Isle of Mans or Jersey.

Such small centers are particularly vulnerable in a world of transparency and communication.