Ethics and governance in the European Financial centers

Liechtenstein has just signed an agreement with Monaco to exchange information on fraud and tax evasion based on the OECD tax model.

The jurisdiction has now half of the required agreements (6 out of 12).

Agreements with San marino and Ireland and initialed.

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The AFP has reported that Liechtenstein and Luxembourg, which have both been criticised by world powers for their banking secrecy, are planning a tax treaty to fall into line with OECD rules.

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"As far as German-Liechtenstein relations are concerned, we wait here for better times, although I am optimistic, for in the past 200 years we have managed to survive three German Reichs, and I hope we will also survive a fourth," wrote Prince Hans-Adam II of Liechtenstein in a letter rejecting a request from a Jewish museum which asked him to lend it a painting from his collection.

I can understand that Hans-Adam II is upset as the reputation of Liechtenstein and its financial center have been damaged by the events.

The prince's office said in a statement that he had in no way intended "to belittle the atrocious events of the Third Reich" in what was meant to be a private and personal letter.

As far as the dispute between Germany and Liechtenstein is concerned since Germany acquired secret bank data by buying information, I do consider that selling the truth or buying it is a pathetic attitude.

Doing a citizen duty cannot be remunerated.

Furthermore, as I already wrote I am not in favor of whistleblowing. Whistleblowing is based on internal information that is communicated and therefore is clearly a breach of loyalty. There are many public and official facts in the jurisdictions that allow to trace both a lax attitude and a support to professional that do not comply with professional standing.

Additionaly if institutions like the GRECO, OECD, the United Nations... call for the implementation of provisions for the protection of whistleblowers, they do not sanction jurisdictions that do not abide by the recommendations.

It is amazing to see that the word "whistleblowing" does not exist in the FATF website with a google search.

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