Reuters, 18 Mar 2009, Alexander Smith
LONDON (Reuters) - Big countries have got the world's tax havens running scared. They must now press home their advantage to stop such countries providing oases for tax dodgers and money launderers.
Switzerland, Austria, Luxembourg, Liechtenstein and Andorra have all responded to a global crackdown on tax evasion by offering to relax strict bank secrecy laws. This is an important victory for campaigners to put tax havens on the straight and narrow. Until their recent climbdown, Liechtenstein and Andorra were two-thirds of a trio of hardliners that refused to commit to Organization for Economic Co-operation and Development (OECD) standards on transparency and the exchange of information, earning them a place alongside Monaco on the OECD's blacklist of uncooperative tax havens.
Singapore and Hong Kong have both made moves toward complying with OECD standards on exchanging information and both can adapt to survive. For others such as Andorra, skiing and tourism may have to take the place of dusting gold bars. But for some of the island paradises which have made discreet money management their hallmark, more comprehensive plans will need to be put in place to ensure that disruption is minimized.
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