Ethics and governance in the European Financial centers

Minister Luc Frieden was invited last May 2007 to participate to the annual assembly of the ALPP (Association Luxembourgeoise des Professionnels du Patrimoine), which is a non-profit organisation that includes over 100 independent companies, established in Luxembourg.

What was said is perfect illustration of the fact that in Luxembourg business is business without shame but with governmental support.


"We are loosing business and many clients are discouraged. It is necessary to renew and inject dynamism into the financial center", the Chairman said.


"Should a large financial center like ours exaggerate or be more lax with the risk of a couple of scandals. Yes we may have exaggerated some procedures but this was a general trend in Europe. I hope we have not done badly at that is still possible to go backward. I am ready to give up some requirements", Minister Frieden said.

The center is not lax enough compared to other centers and especially the United Kingdom and even Switzerland?


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The ABBL this month published its comments relating to the draft law to transpose the third directive (Directive 2005/60/EC of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing).
The third Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing aims to incorporate the June 2003 revision of the Forty Recommendations of the Financial Actions Task Force (FATF) into EU legislation.

Bankers' comments are definitely more responsible than comments at the time of the transposition of the second directive.

Especially they underline and deplore that Luxembourg will not tranpose all the provisions by the end of the year.

This is not serious for a center that communicates that it is at the Forefront of the Fight Against Financial Crime.

So is not seriousfrom the audit leader the absence of country report on economic crime.




Draft law
ABBL comments

Pensylvania and Montana have qualified Luxembourg as a tax haven in their legislation.

Penlyslavia defines a tax haven as "a jurisdiction that at the beginning of a taxable year is a tax haven as identified by the Organization for Economic Co-operation and Development, plus the sovereignties of Bermuda, the Cayman Islands, the Bailiwick of Jersey and the Grand Duchy of Luxembourg."



Montana

Pensylvania