Ethics and governance in the European Financial centers

PwC has just published its Economic Crime Survey.

There are no respondants from Luxembourg as officially economic crime does not exist, so corruption does not exist in this jurisdiction.

Why ? 

Thanks to the small size of the country, the fact that everyone knows everyone else (thus encouraging self-regulation) and the high level of incomes.

This is what was said by the Luxembourg authorities in OECD and GRECO reports.

This may be the reason why there are no data about corruption in Luxembourg.

In its report to assess the enforcement of the OECD Bribery Convention, TI observes that  “No TI reports were prepared for three countries, Estonia, Iceland and Luxembourg, since TI lacks experts in those countries, but TI Estonia provided current data on cases and investigations”.

It appears that in the tables data are actually missing only for two jurisdictions: Iceland, the jurisdiction that went bankrupt, and Luxembourg. Among the EU Member States that signed the OECD convention (most States) Luxembourg distinguishes itself, as it is the only jurisdiction that is unable to provide data, which is telling for a jurisdiction that is an important financial center despite it is a tiny state

The fontage is definitely cracked.

Several civil servants from the tax admuinistration are before the court in Luxembourg this week

Corruption, economic crime and tax evasion with offshore scams are on the agenda.

The tax haven is there.

Know more