Ethics and governance in the European Financial centers

Europeanvoice.com has reported that Luxembourg and Austria are blocking adoption of an EU anti-fraud agreement with Liechtenstein, because of concerns that their banks will be left at a competitive disadvantage. They are also opposing mandates for the European Commission to negotiate similar agreements with Andorra, Monaco, San Marino and Switzerland.

The Liechtenstein agreement covers co-operation with member states to tackle intentional tax evasion and tax fraud. It would oblige the principality to provide, on request, details on individual account holders and value of deposits.

Austria and Luxembourg complain that the agreement is too narrow, as it would not force Liechtenstein to reveal full information on beneficiaries of trusts and shell corporations.

Austria and Luxembourg do not like transparency as they support trusts and shell corporations.

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