Ethics and governance in the European Financial centers

Tax Justice Network has reported that the Swiss Federal Council has just published a new report, Strategic directions for Switzerland's financial market policy, which is predictable in its genuflection to Swiss bankers. Indeed, as the accompanying press release notes that "The Federal Department of Finance (FDF) prepared [it] in consultation with financial market players, defines goals and measures to further strengthen the Swiss financial centre. The responsibility of the Confederation is limited to the creation of an appropriate regulatory framework."

Like in Luxembourg public policies are influenced by the business community but with a huge difference: conflicts of interest are specific to the Luxembourg jurisdiction because of the small size, which explains the reason why the regulator does not do the job as it should in Luxembourg (See the Madoff affair for example and the influences on the regulator that are traced in CSSF sources)

The Luxembourg government today published a press release that is signed by the Luxembourg Minister of Justice and Angel Gurria.

This press release took place place in the framework of the 10th anniversary of the entry into force of the OECD Anti-Bribery Convention.

Despite Luxembourg is a secrecy jurisdiction with many scandals that are hushed up including corruption cases like the recent affair of "ruling" before the court, criminal libility of legal persons does not exist.

The press release does not say a word about this failure to comply with OECD Anti-Bribery Convention.

Legislature file

The media have reported what Luc Frieden said in the framework of an event that was organised by PwC Luxembourg for the financial center: the banking day.

He said that a bank without secrecy should be created as in 3 or 4 years banking secrecy will no longer be possible.

It is amazing that in its press release about the event ABBL does not quote this statement.