Ethics and governance in the European Financial centers

Europeanvoice.com has reported that Luxembourg and Austria are blocking adoption of an EU anti-fraud agreement with Liechtenstein, because of concerns that their banks will be left at a competitive disadvantage. They are also opposing mandates for the European Commission to negotiate similar agreements with Andorra, Monaco, San Marino and Switzerland.

The Liechtenstein agreement covers co-operation with member states to tackle intentional tax evasion and tax fraud. It would oblige the principality to provide, on request, details on individual account holders and value of deposits.

Austria and Luxembourg complain that the agreement is too narrow, as it would not force Liechtenstein to reveal full information on beneficiaries of trusts and shell corporations.

Austria and Luxembourg do not like transparency as they support trusts and shell corporations.

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International Tax Review provided a very interesting analysis on the debate about the fight against tax havens.

Read analysis

On 5 October 2009, the Group of States against Corruption (GRECO) celebrated its 10th Anniversary with a High-level Conference which brought together a large number of Ministers and Secretaries of State as well as representatives from its 46 member States, several non-member States, international organisations and civil society.

 

Numerous speakers highlighted the need for enhanced cooperation among all international stakeholders in the fight against corruption with a view to avoiding duplication and promoting synergies.

 

Files including videos about the event are available there.

 

It is interesting to analyse the national delegations. There is a kind of clue about the involvement of the jurisdiction in the fight against corruption.

 

MONACO (2.02 Km2)

 

M. Philippe NARMINO, President du Conseil d’Etat, Directeur des Services Judiciaires, Direction des Services Judiciaires, Palais de Justice

Mme Claudette GASTAUD, Ambassadeur Extraordinaire et Plenipotentiaire, Representante Permanente, Representation Permanente de Monaco aupres du Conseil de l’Europe

M. Andre MUHLBERGER, Directeur de la Surete publique, Direction de la Surete publique

M. Thierry PERRIQUET, Conseiller pres la Cour d’Appel, Palais de Justice

M. Frederic PARDO, Secretaire des Relations Exterieures, Direction des Affaires Internationales, Departement des Relations exterieures, Ministere d'Etat

M. Frederic COTTALORDA, Chef de Section, Service d’Information et de Controle sur les Circuits Financiers (SICCFIN)

 

LUXEMBOURG (2586 Km2)

 

M. Jean BOUR (Chef de délégation au GRECO), Procureur d’Etat, Parquet du Tribunal d’Arrondissement de Diekirch

 

 

 

Comment:

 

Noone from the Corruption Prevention Committee (« COPRECO ») in Luxembourg. As explained, COPRECO is an interministerial body responsible in particular for preparing and proposing to the Government measures to combat corruption and for co-ordinating within the public administration the enforcement of any measures adopted.

 

Criminal liability of legal persons is not enforced in Luxembourg despide an injunction last year and a new one this year:

- "OECD urges Luxembourg to introduce liability of legal persons for foreign bribery" (OECD Working Group on Bribery, 27 March 2008)

- "Toutefois, force est de constater que plus de deux ans se sont écoulés depuis le dépôt du projet de loi, sans que celui-ci n’ait encore franchi une étape décisive dans la procédure  parlementaire. Le Groupe de travail de l’OCDE sur la corruption reste donc sérieusement préoccupé par l’absence de responsabilité des personnes morales en droit luxembourgeois, dix ans après l’entrée en vigueur de la Convention sur la lutte contre la corruption d’agents publics étrangers dans les transactions commerciales internationales. Cette situation constitue un manquement grave et continu aux obligations du Luxembourg par rapport à la Convention." (Mark Pieth-OECD Working Group on Bribery, 22 July 2009)