Luxembourg and the FATF: Profoundly unethical conduct

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Jerome Turquey has an astonishing entry on his blog. As he notes, page 20 of the FATF Annual Report for 2006 – 07 says:

Thanks to a generous gift by Luxembourg the FATF is improving its IT systems to offer to its delegates a better access to confidential documents. This system will be reinforced in the coming year and the FATF will be able to improve its website opened to public consultation.

The FATF is inspecting Luxembourg’s money laundering compliance procedures next year.

Imagine the PWC annual report had said:

Thanks to a generous gift by Northern Rock PWC is improving its IT systems to offer to its clients a better access to confidential documents. This system will be reinforced in the coming year and the PWC will be able to improve its website opened to public consultation.

There would now be a massive public outcry. Thankfully, of course, it did not happen.

And so there should be an outcry about the FATF accepting bribes. It is, after all, an auditor. And it should be barred from receiving anything from Luxembourg as a result, not least because it’s a state where, as Jerome notes:

according to Transparency International, 6 % of respondents reported they paid a bribe to obtain a service.

I’m not often shocked these days, but this is shocking. I call this manifest corruption.