PR push to reassure investors

Franck Biancheri, Counsellor for External Relations and International Economic and Financial Affairs, is leading the public relations exercise to explain Monaco’s policy. Too satisfy the OECD’s demands, Monaco signed tax information exchange agreements (TIEAs) with the United States, Belgium, Austria, Liechtenstein, Samoa, San Marino, St Kitts & Nevis, Bahamas, Andorra and Argentina, in addition to the long-standing treaty with France.

However, Mr Biancheri stressed that although each TIEA has been negotiated separately, all cases require the foreign tax authority to provide substantial, concrete evidence that they have good reason to investigate the account holder. “The Monegasque authorities will not respond to vague questions” he insisted. “Fishing for information expeditions will not be possible.”

Of much more interest to investors are the Double Tax Agreements which Monaco has already signed with Luxembourg and Qatar. Similar treaties are being negotiated with Cyprus and Malta. Now that the “Damocles sword of the OECD deadline” has passed, Monaco can settle down and pursue similar agreements with other countries. New Zealand, Holland, Mexico, Australia, Germany, India, Seychelles, Cyprus and Greece are among 20 on the table.

Notable by its absence is Italy, given that Italians represent the third largest community here (after the French and Monegasques). “A delicate subject,” was how Mr Biancheri described it, especially as Italian Prime Minister Silvio Berlusconi’s generous fiscal amnesty is reported to be having a big impact. Also absent is the UK as “we haven’t had any negotiations with that country”.

As the global shift towards greater transparency in banking gathers momentum, Monaco is trying to position itself more as a financial centre than an offshore haven, a place where wealthy people will still want to live. As Mr Biancheri reminded the hall the Principality has three major assets “tight security, political stability and an ideal geographical position in the heart of Europe where people can live well.” CL