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Luxembourg assessed by the Global Forum on Transparency and Exchange of Information for Tax Purposes

Published Monday March 18 2019

As part of the second round of peer review conducted by the Global Forum on Transparency and Exchange of Information for Tax Purposes, Luxembourg was rated "largely compliant" with the international standard of transparency and exchange of information on request.

The Global Forum assessed the legal implementation of the standard, as well as its application in practice, in particular concerning requests for information received and sent during the period from 1 October 2014 to 30 September 2017.

The report, published on 18 March 2019, concludes that Luxembourg pursued the necessary reforms to remedy the deficiencies identified in the previous report published in 2015. In this regards, it is worth highlighting the immobilization of bearer shares, as well as the continuous supervision of issuing companies and custodians in the fight against money laundering and terrorist financing.

The Global Forum report stresses that Luxembourg has correctly applied the international standard for the exchange of information on request during the evaluation period, and has transposed most of the recommendations made in the previous report.

As a result, Luxembourg has received a "compliant" assessment, i.e. the highest rating, for seven out of the ten elements of the standard. This result reflects a very good overall level of legal implementation of the standard and its application in practice. 

Following this positive evaluation, Luxembourg has the same rating as notably the United States, Australia, Austria, Belgium, Denmark, Germany and the Netherlands. This result confirms the policy of transparency to which Luxembourg has been committed since 2014.

Finance Minister Pierre Gramegna commented: "I am delighted that the Global Forum has recognized Luxembourg's efforts in the area of tax transparency. This rating reinforces Luxembourg's reputation as a reliable and cooperative partner, which contributes to the competitiveness of its financial center at the global level."