Sigrún Davíðsdóttir's Icelog

Re Luxembourg and bank secrecy

with 2 comments

An Icelog reader pointed out to me that my comment on bank secrecy and Luxembourg, re OSP and Kaupthing Luxembourg, had been somewhat misleading. He pointed out the following:

“In Luxembourg banking secrecy was never a hindrance to criminal judicial cooperation. Indeed, the rule of banking secrecy never plays in criminal investigations, whether it is a national case or a transnational one.

Banking secrecy received its famed name, because under Luxembourg law tax evasion (as opposed to tax fraud) is not a crime. Since it is not a crime, criminal rules do not apply and banking secrecy will withstand tax scrutinity (both national and international). This has now however been changed for international tax cooperation only.”

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Written by Sigrún Davídsdóttir

February 2nd, 2011 at 5:39 pm

Posted in Iceland

2 Responses to 'Re Luxembourg and bank secrecy'

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  1. The old ploy of whitening what is actually a fraud eg: tax evasion, is pervasive in Monaco they are getting away with it.
    Let’s not forget that famous mafiosi during US prohibition were caught for tax evasion.
    Tax evasion is stealing from tax payers.
    It is also an excuse for making any illegal money become legal.


    3 Feb 11 at 12:12 pm

  2. Most of us are particularly appalled by the Luxembourg Banking law conveniently put in place by , it is said, a Landsbanki Bank Lawyer, as everyone knew even then, that the wreckless Bankers were treading on dangerous waters and the Banking System was terminally ill.

    This typically Luxembourg law was brought out in 2005 and virtually gives Bankers EVERY RIGHT as it says all the contracts are ‘unattackable”.

    This means, of course, that any victim of bank fraud or mis-management of funds or any of their lies and mis-information will ALWAYS lose against the Banks in Luxembourg.

    This is why the Icelandic Banks felt so safe operating from Luxembourg as they knew they could do anything and everything they wanted.

    Iceland is paying for this as in world press it is Iceland who has the bad publicity, not Luxembourg.

    The honest, hard-working Icelandic people should be held as an example of the courage it takes to stand up against the destruction these Bandit Bankers have caused.

    The Icelandic people have shown the world what massive PEACEFUL demonstration is all about. They have shown the world that ordinary hard-woring people DO have a say against evil and greed.

    The Icelandic people should not have to pay for the greed, ignorance and wrecklessness of the bankers who still think they own the world and can destroy honest families and working people.

    I feel sad that Iceland is being made to look bad when Luxembourg sneaks around in the background carrying on as normal, protected by impossible Banking Laws which contravene all the Consumer Laws of every other nation and the EU.

    It is shocking to see such injustice and there are millions of us, who are spectators of what has happened in Iceland who take our hats off to the Icelandic people for their courage and dignity in their fight against the corruption of the bankers.

    Iceland will end up with massive tourism as it is seen to be the small nation that cleaned up the polluted Banking world. Everyone is watching the arrests of the Bankers with great interest.

    Luxembourg is the nation who helped protect the biggest Banking pollution and has stabbed the consumer in the heart.

    Iceland must not pay for the Bankers and let them free to destroy more and more people.

    The Bankers must pay for their wreckless joy ride, not the people.

    The British are allowing all their greedy Bankers to get away with destroying the economy.

    Why should the Icelandic people follow the example of corrupt Britain, who supports anything the Bankers do?

    Let Iceland set the example to the world and they will be the wealthiest and most respected of nations.

    Ordinary hard-working people must have a chance of survival in this world.

    Rachael Williams

    9 Feb 11 at 7:28 am

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