Please enter your email address to receive a password reminder.
Log into Tax-News+
Intensifying the pressure on its banks, the French government is introducing a new measure requiring all French banks to disclose information regarding their links to tax havens. Indeed, eager to make this compulsory measure widespread, the French government is expected to try to convince other countries to follow suit at the next G20 summit meeting.
Following a vote last week on the law pertaining to the merger of the Caisse d’Epargne and the Banque Populaire, creating the country’s second largest bank, credit institutions in France are now legally obliged to publish information in their annual accounts regarding their activities in jurisdictions deemed “uncooperative” in tax matters.
The move marks a significant departure, since until now banks were only accountable in terms of their transparency to the “commission bancaire” or national regulator.
President of Transparency International France Daniel Lebègue welcomed the decision, while acknowledging that the measure is in no way intended to condemn the presence of French banks in these territories.
Pressure on French banks has mounted since the start of the global financial crisis. Last week, Budget Minister Eric Woerth indicated that the links between the banks and tax havens needed to be clarified, while back in April, French President Nicolas Sarkozy urged all credit institutions to behave in an “exemplary” manner in this matter.
Although the precise details of the measure are as yet unclear, a ministerial order is expected to follow in October.
IMPORTANT NOTICE: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
All rights reserved. © 2017 Wolters Kluwer