08/18/2009
International recognition for Luxembourg
Read on a website in the US, F.A.Q. page:
Do you ship outside the U.S.?
Yes, however we do not accept orders from the following countries due to the high rate of fraud:
Argentina, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Corsica, Costa Rica, Croatia, Cyprus, Czech Republic, Ecuador, Egypt, El Salvador, Estonia, Fiji, French Polynesia, Grenada, Guatemala, Hungary, Iceland, India, Indonesia, Kuwait, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Martinique, Mauritius, Mexico, Netherlands Antilles, New Caledonia, Nigeria, Panama, Paraguay, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, Slovakia, Slovenia, St Lucia, Syria, Thailand, Turkey, Uruguay, Venezuela, Yugoslavia.
Many of the above countries are "tax havens", or developing countries, or countries of Estern Europe.
It is amazing but not a surprise to see Luxembourg on this list. It is the result of a lax legal and regulatory framework in the jurisdiction.
08:10 Posted in Luxembourg | Permalink | Comments (3)
Goodies: Venezuelan letters (V)
Persian Letters (Lettres persanes) is a satirical work, by Charles de Secondat, baron de Montesquieu, recounting the experiences of two Persian noblemen, Usbek and Rica, who are traveling through France. In Paris, the Persians express themselves on a wide variety of subjects, from governmental institutions to salon caricatures.
As this is summer time, I would like to offer some goodies on this blog with a couple of Venezuelan letters. These will be an exchange of e-mail between two Venezuelans, the first one, Manuel, residing in Venezuela and the second one, Jose, travelling in Europe.
From: Manuel
To: Jose
Sent: Monday, August 17, 2009 11:55 PM
Subject: Auditors
Dear Jose,
The Luxembourg audit system seems very good.
As the auditee – the client – pays for the audit, he/she must have a say on the evolution of the Luxembourg audit framework and on the external auditors’ duties.
Is it difficult to be an auditor in Luxembourg?
Cheers.
Jose
From: Jose
To: Manuel
Sent: Tuesday, August 18, 2009 6:50 AM
Subject: RE: Auditors
Dear Manuel
You will not believe it. I am now auditor in Luxembourg. It is funny, they call me a commissaire (comisario), although I am not with the police.
I met a professional in a cabaret close to the station last week.
I was invited the day before yesterday to play the golf by this nice man who is working for a law firm that was looking for an auditor for a société anonyme (Joint Stock Company) to be registered in Luxembourg whose shareholders are located in Tortola (BVI), Jersey and Singapore. He whispered that it was very secret and anonymous and confidential .
He asked me if I would be interested to be the commissaire (statutory auditor) of that company.
I told him that I left school when I was fifteen and that I neither studied law nor accounting.
He replied that it does not matter as the law of 1915 on commercial companies does not require any qualification to be a statutory auditor.
The audit in itself is not a difficult job: the audit report will be prepared based on a template. I will only have to put my signature and cash some money
I was asked as well to create a company in Luxembourg. The law firm will provide me the money. The appointment is tomorrow at the notary’s office.
Authorities here are business friendly as the business comunity decides simultaneously on the legislation and the regulation to be enforced and the ultimate controls. There are many statutory auditors and shareholders like me. Ningún problema, as we say at home.
Cheers
Jose
07:37 Posted in Luxembourg | Permalink | Comments (0)
Meltdown 101: From China to Luxembourg to the Caribbean, a look at what countries hold US debt
The Associated Press has reported the top ten lenders to the USA:
$776.4 billion: The amount of Treasury securities held by China at the end of June
$711.8 billion: The amount held by Japan
$214 billion: The amount by the U.K.
$191 billion: The amount collectively held by Saudi Arabia, Venezuela and 13 other oil exporters
$189.7 billion: Held by the Caribbean banking centers
$139.8 billion: Held by Brazil
$119.9 billion: Held by Russia
$104.2 billion: Held by Luxembourg
$99.8 billion: Held by Hong Kong
$77 billion: Held by Taiwan
As Christopher S. Rugaber explained, the top ten list is telling. Many countries have large holdings because of their financial sectors.
The fifth-largest holder of Treasurys is a collection of Caribbean countries, including the Bahamas, Bermuda, and the Cayman Islands, with $189.7 billion. The Treasury Department collectively calls the group “Caribbean Banking Centers.”
The Cayman Islands, for example, has become a major financial center. It is home to 9,000 hedge funds and other investment vehicles, according to a report last year by the Government Accountability Office. Those funds likely hold some Treasury securities.
Many investment funds use the Cayman Islands as an offshore tax haven, according to the GAO report.
Luxembourg, meanwhile, is the eighth-largest holder of U.S. Treasury securities, with $104.2 billion, just behind Russia at $119.2 billion.
The small country of 460,000 has a healthy banking sector whose companies are among Europe’s leading asset managers, according to the Luxembourg embassy’s Web site. Its large holdings of Treasurys likely reflect that reality. A call and e-mail to the Luxembourg embassy seeking comment weren’t returned.
06:13 Posted in General | Permalink | Comments (0)