Ethics and governance in the European Financial centers - monaco

OECD to investigate in Monaco

noreply@blogspirit.com (jturquey) — Fri, 20 Nov 2009 19:11:17 +0100

Challenge has reported that OECD is going to investigate in Monaco. The signature of most tax agreements with tax havens sounds like a way to fool the audience.

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Monaco to be taken off Gurria's tax secrecy 'grey list'

noreply@blogspirit.com (jturquey) — Sun, 20 Sep 2009 09:03:00 +0200

Monaco is to be removed from an OECD "grey list" when it signs a fresh round of international tax agreements on Monday, the Telegraph reported.

As Oxfam, a French NGO, commented, this perspective sounds like a farce. Offam has the same reserves as the Global Forum on Transparency and Exchange of Information.

Tax agreement were signed with jurisdictions that are said to be havens : Andorra, Austria, the Bahamas, Belgium, Liechtenstein, Luxembourg, Qatar, Samoa, San Marino, Saint Kitts.

I am looking forward to reading the OECD press release that should look like the following (adapted from the PR for Luxembourg) :

The Progress Report initially published by the OECD Secretariat on 2 April 2009 in conjunction with the G20 has been updated, and Monaco moves into the category of “Jurisdictions that have substantially implemented the internationally agreed tax standard.”

Having withdrawn its reservation to the OECD standard on exchange of information in March 2009, Monaco has shown rapid progress in updating its treaty network. Further negotiations are under way to update the exchange of information provisions in Monaco’s bilateral treaties.

Welcoming the recent signings, OECD Secretary-General Angel Gurría said: “I commend Monaco for its swift implementation of the OECD standards on exchange of information. In a couple of months, Monaco has turned into reality its commitment to fully cooperate in tax matters. I would like to congratulate Frank Biancheri for his leadership in this process”.

Monaco is thus contributing to strengthen the very important process of transparency around the world, where dozens of other agreements are being signed by different jurisdictions.

Mr. Gurría added that the Monaco government had informed him me that in line with the spirit and purpose of this collective effort they intend to continue the process of negotiating agreements which meet the OECD standard.

Angel Gurria is happy, the OECD is happy, governments in these jurisdictions are happy, bankers are happy....

I must be a fault finder...

Monaco : new legislation to fight money-laundering

noreply@blogspirit.com (jturquey) — Mon, 10 Aug 2009 17:20:36 +0200

The AFP has reported that Monaco has adopted a new law on money-laundering as part of a drive to clean up its financial sector in line with international standards.

Under the new rules, insurers, accountants, notarial firms, high-end traders and lawyers helping with property or financial transactions will all be asked to carry out checks on their clients.

The law also introduces a new 30,000-euro (47,000-dollar) cap on cash payments, and boosts the powers of the FIU.

I will comment later the possible traps in this legislation.

Monaco Plans Makeover To Shed "Tax Haven" Image

noreply@blogspirit.com (jturquey) — Wed, 22 Jul 2009 05:46:48 +0200

AFP has reported that Monaco has hired a trio of public relations experts to help the Mediterranean principality shed its image as an international tax haven, officials said the day ebfore yesterday.

Monaco to relax bank secrecy

noreply@blogspirit.com (jturquey) — Sun, 15 Mar 2009 19:25:48 +0100

Reuters has reported that Monaco will soon join moves to relax bank secrecy, following Belgium, Liechtenstein, Andorra, Switzerland, Austria, Luxembourg and others.

I will develop in the following days the situation in this jurisdiction that is smaller than Luxembourg, with a special responsibility for France.

Read IHT

SICFIN : Activity report 2007

noreply@blogspirit.com (jturquey) — Sat, 20 Sep 2008 08:35:15 +0200

Anti-money laundering and combating the financing of terrorism (AML/CFT) was highlighted by the Council of Europe Moneyval Committee’s adoption of the third round mutual evaluation report on the Principality of Monaco, which was prepared following IMF and FATF methodology.

The report follows the on-site visit of financial and legal experts in the Principality in 2006. It states among others that "the Principality has a satisfactory legal framework to combat money laundering and terrorist financing.” […] Overall, the Monegasque FIU is effective and the driving force behind the AML/CFT national efforts. Monaco has designated competent authorities to investigate and prosecute money laundering and terrorist financing offences […]. Measures for domestic and international co-operation are generally comprehensive as well. "

It is said page 12 that 381 declarations of suspicion were reported in 2007, of which 213 from banks (56%).
It seems that there are no declarations from registerd auditors but chartered accountants reported 7 declarations.
In 2007, the number of Suspicious Transaction Reports received by SICCFIN slightly dropped by 3.5% (395 declarations in 2006).

Read press release

AML : assessment of Monaco by MONEYVAL

noreply@blogspirit.com (jturquey) — Sun, 30 Dec 2007 04:45:00 +0100

The summary of the report on the Principality of Monaco was published last 18 December.

According to the report (paragraph 3), "the Principality has a satisfactory legal framework to combat money laundering and terrorist financing" but when reading carefully it appears that if the legal and regulatory frontage is OK, the implementation and enforcement is actually rather limited.

But the center passed the examination. Next assessment will be carried out by the IMF in March 2008 with the same credibility : it is the IMF that stated about Luxembourg in a report dated October 2004 that "Luxembourg has in place a solid criminal legal framework and supervisory system to address the significant challenge of money laundering faced by this important international financial center". There is a big gap between the visible framework and supervisory system (the frontage) and what is actually implemented and enforced (the "back office").

Read MONEYVAL report on Monaco

Money Pours Into Monaco Banks

noreply@blogspirit.com (jturquey) — Wed, 12 Dec 2007 08:00:10 +0100
A Roger Munns wrote the day before yesterday, Monaco and Andorra - Europe's top two tax havens - are seeing an influx of funds to their banks, despite governments worldwide actively trying to stop their citizens using tax havens to bank their money.

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Monte Carlo or busted

noreply@blogspirit.com (jturquey) — Wed, 07 Nov 2007 07:50:28 +0100
Vanessa Houlder last 27 October published an interesting article in the Financial Times.

Read article

Hobbs-Melville scandal sentenced by the Court

noreply@blogspirit.com (jturquey) — Sun, 07 Oct 2007 08:36:48 +0200
William Fogwell and his daughter Shelley Fogwell were were condemned last Tuesday : the Court found both of them guilty of the charges against them in relation to the collapse of Hobbs Melville in 2000 and sentenced to 5 years prison. They were also fined €500,000.

Guillaume Losada, Shelley Fogwell's former boyfriend, and Jean-Christophe Moroni, a broker, were as well found guilty : the Court sentenced Losada to 18 months prison plus fined €50,000 ; the Court sentenced Losada to 1 year prison plus fined €53,000.

This is the most important scandal in Monaco with suspicion on the authorities stated in the framework of the appeal.

See article (french)