Don't miss

Replay


LATEST SHOWS

PEOPLE & PROFIT

Brexit and the city: Paris, Frankfurt, Dublin vying for new business

Read more

THE INTERVIEW

Nobel laureate Malala Yousafzai: 'I asked Macron to invest $300m in girls' education'

Read more

FRENCH CONNECTIONS

Is the French Senate a retirement club for old politicians?

Read more

THE INTERVIEW

Burma should give access to investigators, says UN rights chief

Read more

FOCUS

Rohingya crisis: Monks with an ultranationalist agenda

Read more

INSIDE THE AMERICAS

Mexico hit by another deadly earthquake

Read more

BUSINESS DAILY

US Federal Reserve ends historic QE program

Read more

ENCORE!

This week’s not-to-miss exhibitions

Read more

MEDIAWATCH

Rogues aplenty at UN General Assembly

Read more

Business

Luxembourg willing to relax bank secrecy stance

© AFP

Text by News Wires

Latest update : 2013-04-07

Luxembourg’s finance minister on Sunday said the country will consider moves to make its banking sector more transparent in the wake of intense criticism by its eurozone partners.

Luxembourg is prepared to lift the lid slightly on its controversial bank secrecy in an effort to help curb tax evasion by foreign depositors, its finance minister told a Sunday newspaper.

Following intense criticism by eurozone partners of Luxembourg's insular banking practices, Luc Frieden told Germany's Frankfurter Allgemeine Sonntagszeitung it would now consider moves toward greater transparency.

"We want to strengthen cooperation with foreign tax authorities," he said.

"The international trend is going toward an automatic exchange of bank deposit information. We no longer strictly oppose that."

He cited interest payments to foreign clients as an example of data that could be given to home countries as a matter of course.

"Luxembourg does not rely on clients who want to save on their taxes."

German Finance Minister Wolfgang Schaeuble called the remarks good news.

"I welcome every step toward an automatic exchange of information," he told Monday's issue of the daily Saarbruecker Zeitung, which provided an advance copy.

"We are in close consultations with Luxembourg and discussed the issue a few weeks ago during a meeting of the German-speaking finance ministers in Berlin."

One of six founding members of the EU, Luxembourg has increasingly come under the microscope in post-global financial crisis legislative clean-up action, primarily for its culture of banking secrecy.

Frieden said recently he wants finance clients to come to Luxembourg "not to escape taxation... but because our products and services are better geared to international needs."

The Luxembourg government said the sector includes 141 banks from 26 countries and 3,840 investment funds sold in 70 other countries.

The issue gained fresh prominence this month when a vast trove of emails and leaked records from offshore tax havens exposed the identities of thousands of account holders.

The release prompted fresh calls to crack down on banking systems that facilitate tax dodging.

(AFP)

Date created : 2013-04-07

  • FRANCE

    French budget minister Cahuzac quits amid Swiss bank account probe

    Read more

  • VATICAN

    Pope to shed light on Vatican's murky banking

    Read more

  • SWITZERLAND

    Whistleblower Swiss banker found guilty of breaching secrecy

    Read more

COMMENT(S)