Cracks appear in tax haven’s secrecy

One of the most secretive financial services markets in the world has joined the International Organization of Securities Commissions (IOSCO), after the president of the international body approved the Financial Market Authority (FMA) of Liechtenstein for membership.

To gain membership, the FMA had to prove it was working toward becoming a signatory to Appendix A of the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information.

“It gives me great pleasure to welcome the FMA as IOSCO’s 115th ordinary member,” said Jane Diplock, Chairman of the Executive Committee. “It is gratifying that over the last number of years we have seen so many national regulators from differing legal and regulatory traditions become members of IOSCO in pursuit of our common objectives for securities regulation.”

Liechtenstein has been at the centre of controversy for nearly a decade, as financial regulators clamped down on bank secrecy in the aftermath of the September 11, 2001 attacks.

One of IOSCO’s key goals is to unite the efforts of its members in establishing effective surveillance of international securities transactions.

The alpine principality’s anstalt structures are the stuff of legend, reputedly favoured by global organized crime and the U.S. Central Intelligence Agency as a means of hiding and investing funds.

Odds are that Western government agencies will continue to enjoy this secrecy. Individuals hiding ill-gotten gains may want to consider a coffee can buried in the backyard.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.