05/26/2009
LIGFI : the genesis
I have commented the launch of the LIGFI in Luxembourg and the non relevance of most members in the project team, under patronage of Jacques Santer who recently said that “Le Luxembourg n’a jamais ménagé ses efforts pour assurer la transparence voulue par l’Organisation de coopération et de développement économiques, et ceci en collaboration étroite avec le Groupe d’action financière (Gafi) instauré par l’OCDE justement. J’ajoute que le Luxembourg applique également les directives européennes, en matière de blanchiment d’argent notamment (free translation : Luxembourg never spared its efforts to ensure the transparency required by OECD, and this in close cooperation with FATF, founded by OECD precisely. I add that Luxembourg also implements the European directives, as regards money laundering in particular).
What about the OECD and GRECO requirements regarding the fight against corruption?
What about the enforcement of criminal liability of legal persons as requested by the OECD?
What about the poor means of the regulator compared to what exists abroad, which was admitted by the director who retired recently?
What about the scarce number of financial crime cases for a country that has such a large financial sector, which is regularly observed by the US Department of State in its International Narcotics Control Strategy Reports (INCSR)
Etc.
I am afraid he as a distorted view of reality, what is not good omen for an efficient and credible patronage.
As far as the association is concerned, there is an amazing discrepancy in the Corporate Registration.
It is said that “In the year two thousand and nine, on the twentieth of April (20 April 2009).
Between the undersigned (…) and all those who become parties to the present contract, is formed a non-profit organization in conformity with the law of 21 April 1928 on non-profit organizations and foundations, as amended. »
The Launch is dated 20 April 2009.
But, it is said infra that “The start-up funding of the a.s.b.l. by Sandstone S.A. for the period of September 2008 through April 2009 is allocated for Sandstone SA as a Charter Member to the maximum Charter member initial fee of EUR 40,000, with the amount outstanding to be charged against current and future annual fees as fixed by the Board of Directors”
This raises a couple of questions:
What/who is Sandstone S.A.?
Sandstone was founded in 2008 by a group of former intelligence and international security experts. Their mission is to provide the clients with high value commercial intelligence services.
What on earth was needed to be financed for the period of September 2008 through April 2009 for an association that was launched in April 2009 ?
The domain ligfi.org was actually registered in December 2008 by Jed Grant for Sandstone s.a.
LIGFI was in the pipe late 2008 but LIGFI was not developed until the April 2009 as the website is currently an empty shell (many blank pages)
The Hostmaster is ONEANDONE. Its fees are not very expensive.
The registered office and address are established at 5-7, rue Munster, L-2160 Luxembourg City, Grand Duchy of Luxembourg at the Cercle Munster. Admission to this club is reserved exclusively for members and their guests. To become a member of the club, a candidate's application must have the backing of two sponsors. The final decision rests with the admissions committee for admission.
Cercle Munster is a private business club with restaurants, shops… for wealthy people living in Luxembourg.
To reach the EUR 40,000 between September 2008 and April 2009, made deduction of the fees for the Hostmaster, this represents noshes-up at the Cercle Munster for the team.
Unless it was used at the time of the debate prior to the G 20 for economic intelligence actions (this is by the way Sandstone's business)and lobbying to promote the Luxembourg vision of business ethics.
18:40 Posted in Luxembourg | Permalink | Comments (0)
Swiss professionals admit the OECD tax model is a charade to counter tax evasion
To comment the recent tax agreement between the USA and Luxembourg, Le Temps interviewed a couple of Swiss professionals.
What they say admits that financial centers knowingly fool the OECD by accepting the agreement as the OECD framework is not relevant to counter tax evasion.
The agreement requires that the request shall be written, justified and personal, based on a suspicion against a specific person that is addressed to a bank or a precise branch. The circumstances of tax evasion must be described with accuracy.
This is the OECD tax Model for cooperation.
As I wrote, it is exactly as if a travel agency would sell tickets only for detailed requests (e.g. I want a ticket for the flight from X to Y at HH:MMabd) but would not provide information about a destination (Are there flights to go from X to Y, what are the schedules... ?) for the client to get the ticket. Only a few tickets would be sold.
Professionals that support tax evasion confirm what I recently wrote to Angel Gurria :
According to Thomas Kalbermatten, bank Analyst at Credit Suisse, quoted by Le Temps, "Il sera, en pratique, très difficile pour les autorités fiscales étrangères qui appliquent les standards de l’OCDE de fournir ce degré de details" (free translation: “It will be, in practice, very difficult for the foreign tax authorities which apply the OECD standards to provide this degree of details”)
According to Didier de Montmollin, partner at Secretan Troyanov, quoted by Le Temps, "Si la Suisse va dans la même ligne que le Luxembourg, le résultat ne sera pas du tout si problématique pour la Suisse. Le secret bancaire sera relativement préservé, et le client restera maître de son éthique fiscale". (free translation: “If Switzerland goes in the same line as Luxembourg, the result will not be so problematic at all for Switzerland. Banking secrecy will be relatively preserved, and the client will keep his/her tax ethics under control”)
Which ethics?
The one that the LIGFI wants to promote?
18:39 Posted in Switzerland | Permalink | Comments (0)