This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




French Slam Monaco As Money Laundering Hub

Ulrika Lomas, Tax-news.com, Brussels

22 June 2000

Last week a French parliamentary report was published which heavily criticised Monaco as an offshore tax haven which encouraged money laundering and urged the government to review its associations with the principality. The attack on Monaco comes as France prepares to take over the 6-month presidency of the EU and France has made it known that an amendment of the 1991 EU Directive on money laundering will be a top priority. The proposed amendment, tabled by the Commission in July 1999, aims to update and extend the Directive, which has become necessary following the liberalisation of the capital market and financial services.

The 400-page report stated that Monaco, which has strict banking secrecy laws, has shown itself to be unwilling to co-operate in international endeavours to counter money laundering. According to the report, Monaco is 'a place favourable to laundering funds' and cites non-resident individuals and companies hiding away their assets in the tax-free principality, an uncontrolled casino, lack of judicial co-operation and poor surveillance by local and French authorities as the reasons.

Drafted by a National Assembly which wants to crack down on money laundering in Europe, the report said Monaco 'risks destabilising markets through a lack of surveillance of its banking and financial sectors.'

The French administration plainly feels that as Monaco stands at the moment, that is without changes in its legislation on banking secrecy, transparency and co-operation, it is unlikely to succeed in its bid to join the euro zone and the Council of Europe. The intransigence of the French administration is clear for all to see. The report sums up the situation in no uncertain terms: 'Monaco must choose. It is up to it to head for change.'

.

 

 






Write a comment