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Luxembourg agrees to ease bank secrecy regulation

Luxembourg has principally agreed to ease bank secrecy laws from 2015, to deal with the financial crisis, which has largely destabilized many EU nations economies.

Announced by Luxembourg Prime Minister Jean-Claude Juncker, the lift off comes after the pressure exerted by the EU nations to share the data of tax evaders.

Addressing the parliament, Juncker told, "We can, without great damage, introduce automatic exchange of information as of January 1, 2015."

A data released by the European Central Bank underlines that the country with 90,000 population has banking assets 22 times more than its gross domestic product.

It is believed that the country will disclose the data related to interest payments on funds held by private EU investors and not those who are registered as legal or corporate entities.

According to an estimate by the Luxembourg Bankers’ Association, more than 50% of Luxembourg’s private savers are from the European Union.

The EU’s five largest economies including Germany, France, Britain, Italy and Spain have agreed to build a system for automatic exchange of data about tax evaders to bring transparency in financial system in EU and globally.

Luxembourg is discussing with the US to adopt the Foreign Account Tax Compliance Act, a regulation prepared in 2010 to tackle tax evasion by US citizens, which makes it vital for offshore lenders and financial organisations to disclose the US denizens transactions and balances to US.