STEP BeNeLux held an evening seminar on Thursday 26 November at the Cercle Munster in Luxembourg-Grund to examine the issue of banking secrecy.

With moderation by Paolo Panico (solicitor and board member of STEP BeNeLux), Alain Hondequin (ABBL), Jean Schaffner (Allen & Overy) and Alain Steichen (Bonn Steichen & Partners), presented on the topic of Banking Secrecy: Where Are We Now? Luxembourg’s Financial Industry in the Age of Transparency.

The main issues included:

• The Common Reporting Standard (CRS) for automatic exchange of tax information will take effect on 1 January 2016: this represents a “paradigm shift” for Luxembourg, a traditional “banking secrecy” jurisdiction

• Are there competitive advantages in being an “early adopter” while the main competitors in the private banking industry (Switzerland, Monaco, Singapore) are adopting the CRS one year later?

• Should banking secrecy be maintained for Luxembourg residents?

• A public register of beneficial owners is required under the 4th EU AML Directive: possibly a step too far?

• Equally under the 4th EU AML Directive bankers will risk criminal liability in Luxembourg as a result of their clients' tax offences in their home countries: will this have an impact on the industry's practices?

• The proposed Directive on the automatic exchange of information regarding rulings as well as the recent decision by the EU Commission in relation to Fiat and Starbucks may have an impact on the practices of multinationals: will the decision be appealed? will the newly enacted procedure offer an adequate guarantee to taxpayers seeking the Revenue authorities’ control in the form of a ruling?

• A tax amnesty is likely to be introduced next year: is it a real innovation? how does it coordinate with the existing, general provisions of uxembourg trust law?

The event was well attended and the presentations were followed by lively discussion, networking and refreshments.