Ethics and governance in the European Financial centers

The European Commission yesterday has suspended hundreds of millions of euros worth of aid to Bulgaria over corruption and organised crime. Fellow member state Romania was also criticised by the Commission for shortcomings in its judiciary and progress in combating corruption.

I wish the commission were so strict with the six countries that created the European Coal and Steel Community in 1951 and the Treaty of Rome in 1957, and especially:
- Luxembourg, that urgently needs to establish liability against legal persons for foreign bribery and put in place sanctions that are effective, proportionate and dissuasive, according to a report by the OECD's Working Group on Bribery
- Italy, that is gonna eliminate the Office of the Anti-Corruption Commissioner in Italy, which is great concern for Drago KOS, the President of the Group of States against Corruption (GRECO) and that voted an amendment to suspend procedures relating to cases pending against the Prime Minister.

Neither the European commission nor the international organisations like the OECD, the IMF or other, have lessons to give when pillars of these institutions do not care of rules because they have the money.




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According to Michael Cohn, Editor-in-Chief, WebCPA , a Senate subcommittee plans to release another blockbuster report on the use of foreign tax havens after the first reports caused repercussions.
Last week, the Senate's Permanent Subcommittee on Investigations released a report that focused on Switzerland and Liechtenstein.
The ongoing revelations are proving to be a source of consternation for investment banks, wealthy individuals and businesses.


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Senator Levin started his speech with the following words:

About 50 tax havens operate in the world today. Their twin hallmarks are secrecy and tax avoidance. Some tax havens are little known places like Andorra and Vanuatu that few Americans have heard of. Others, like Switzerland and Liechtenstein, are notorious for operating behind an iron ring of secrecy. Billions and billions of dollars worth of U.S. assets find their way into these secrecy tax havens, aided by banks, trust companies, accountants, lawyers, and others. Each year, the United States Treasury loses an estimated $100 billion in tax revenues from offshore tax abuses. Tax havens are engaged in economic warfare against the United States and honest, hardworking American taxpayers.

The offshore tax evasion problem faced by the US is of "staggering proportions (...) by exploiting gaping loopholes, these foreign banks are enabling felony tax evasion. Simply put, foreign banks should not be Al Capone safe-houses for evading taxes."
," said Republican Senator Norm Coleman, the panel's ranking Republican.

The Permanent Subcommittee on Investigations will continue its hearings, "Tax Haven Banks and U. S. Tax Compliance," on Friday, July 25, 2008, at 9:30 a.m.,to call Peter S. Lowy as a witness. Mr. Lowy was originally scheduled to be a witness at the Subcommittee’s July 17th hearing.

Read Opening Statement

Documents relating to the hearing