Swiss-Italian Agreement Stumbles Over Money Laundering Concerns

by Ulrika Lomas, Tax-News.com, Brussels

22 March 2002

A key legal co-operation agreement is still floundering following a meeting between Swiss Economics Minister Pascal Couchepin, and Italian Prime Minister Silvio Berlusconi, according to reports.

The Italian Prime Minister is keen for the agreement, which would allow the two countries to share evidence in cross-border trials, to go ahead, but the Swiss authorities are said to be holding back over money laundering concerns.

The negotiations were overshadowed by various incidents, not least of which was the assassination this week of Marco Biagi, a high ranking adviser to the Italian Government.

A row between M. Couchepin and the Italian Finance Minister, Giulio Tremonti, over the latter's tax evasion amnesty - which has had a substantial effect on the Swiss private banking sector - has also served to complicate the issue.

Speaking to the Swiss media on Wednesday, however, the Economics Minister revealed that, far from criticising the country's policy of strict banking secrecy as his Finance Minister has done, the Italian Prime Minister praised Switzerland's role in the world of international finance.

In the final analysis, though, it is deeper issues which underly the Swiss Government's reluctance to sign the legal information exchange agreement. The Cabinet has expressed concerns in the past that the Berlusconi Government has sought to undermine previous co-operation treaties by watering down legal agreements which allow the cross-border investigation and prosection of money laundering and corruption cases.

The legal tangle over corruption allegations surrounding Mr Berlusconi himself is also understood to be giving the Swiss authorities pause.

Recommended