Ethics and governance in the European Financial centers

The French chapter of Transparency International is organising a meeting with others NGO and non profit making societies

Their concern is that in the press release after the meeting that took place in Paris last Sunday between the G7, the IMF and Eurogroup, there is nothing about the fight against tax havens and other offshore centers that are a threat for the international finance.

TI France explains that in these financial centers reign indeed opacity, the absence of rules and, often, the refusal of co-operation with the other jurisdictions.

Contrary to Transparency International I am not astonished by the absence by any reference and decision relating to tax havens and other offshore centers.

Mr Juncker chairs the Eurogroup. He is Prime Minister of a jurisdiction that publicly and/or officially :
- stated it is not compelled to communicate clients' data
- stated it is not its duty to control if the taxpayer was honest
- ignores currently the liability of legal persons for criminal offences
- is full of conflicts of interests not to say corruption situations because of the small size and networks
- accepts the creation of companies linked to offshore jurisdictions (BVI, Seychelles...) by professionals that are neither members of the IRE (institute of chartered auditors) nor the OEC (institute of chartered accountants)
- accepts statutory auditors that are neither members of the IRE (institute of chartered auditors) nor the OEC (institute of chartered accountants)
- considers as vague and ambiguous offences like forgery, use of forgery, false balance sheets, use of false balance sheets or unauthorized use of corporate property
- has a restrictive definition of CSR that ignores business ethics
- does not publish online company accounts
- does not publish online judiciary judgements
- does not report a credible number of declarations of suspicion
- provided a "generous grant" to the FATF while not respecting GRECO and OECD Working Group on bribery Recs
- has a telling lack of prosecutions and convictions for a country that boasts such a large financial sector
- AND SO ON.

That is a lot for a small jursidiction of 2500 Km2.

That is Luxembourg with no will to change.

I have alredy evoked IMS Luxembourg, the association responsible for promoting Corporate Social Responsibility in Luxembourg.
I was suprised to see that wthere is something wrong with the governance of this association that should be an example, but it is true that in Luxembourg Corporate Social Responsibility is limited to promotional activities do not like those who call for business ethics.


When the association was lounched the board members were published dated 20 March 2007 :

Christian Scharff (Dexia), Chairman
Roland Verstappen (Arcelor Mittal) Deputy chairman
Eric Müller-Borle (Kneip) Secretary
Pierre Krier (PwC) Tresurer
Katia Scheidecker (Noble & Scheidecker)
Paul De Cooman (AXA)

These members were published in the press.

There is a new document online dated as well 20 March 2007, with the following members :

Christian Scharff (Dexia), Chairman
Rémi Boyer (Arcelor Mittal) Deputy chairman
Bob Kneip (Kneip) Secretary
Pierre Krier (PwC) Tresurer
Katia Scheidecker (Noble & Scheidecker)
Paul De Cooman (AXA)


In other words, an official document like a board composition was retroactively changed for the Deputy Chairman and the Secretary, which does not comply with governance good practices.

But it complies with the lax business culture in Luxembourg.