Both Malta and Switzerland have taken issue with a September 21 report in the
UK's Guardian newspaper entitled 'Havens that have become a tax on the world's
poor', which suggested that the world's offshore jurisdictions are "locked
in a desperate competition" to attract tax evaders from onshore countries.
Responding to the report, which was spurred by the Tax Justice Network's launch
of an international secretariat in London, chairman of the Malta Financial Services
Authority, Professor JV Bannister observed that:
"By any international definition, Malta is not a tax haven. There is no
banking secrecy. Malta's levels of professional confidentiality are no different
from those found in London, Frankfurt or New York. All entities are subject
to tax and the basic rate of tax is higher than in the UK."
He went on to add that:
"The standards of regulatory transparency in Malta exceed those of many
large western economies. The details of the beneficial owners of all companies
are accessible to the regulatory authorities and our companies registry includes
the names of all directors and all company accounts. It is freely available
online. Our regulatory standards are frequently tested and approved by all the
global financial policemen."
"What was a finance industry catering for local needs is expanding to
provide corporate and trade finance in the Euro-Mediterranean region, helping
to build economic stability and progress in Malta, among our fellow EU members
and in north Africa," his letter to the newspaper concluded.
Equally incensed was Swiss Ambassador to the United Kingdom, Bruno Spinner,
who especially objected to the report's suggestion that assets looted by former
Nigerian dictator Sani Abacha had not been returned to the Nigerian people.
"Thanks to the tightening of laws against financial crime and their systematic
enforcement, the highly performing Swiss financial system has become a high-risk
place for illegal funds," he wrote, explaining that:
"For example, the Swiss authorities have ensured that £75m looted from
Nigerian coffers by Sani Abacha have been returned to Nigeria. Another £220m
has been frozen pending the conclusion of legal proceedings instigated by Mr
Abacha's family. Other African heads of state such as Mobutu Sese Seko, Charles
Taylor or Eduardo dos Santos have also seen their funds frozen and restituted
by Swiss authorities."
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