The Luxembourg State Savings Bank BCEE targeted by German Tax authorities

My Orchids. Oncidium "Golden Gate". Photo ET

The Luxembourg State Savings Bank BCEE targeted by German Tax authorities

This story was reported by “Der Spiegel” Friday, and has been widely circulated in the Luxembourg German and French speaking Press, despite the traditional quiet time imposed by the All Saints Day.

In a move that has become a routine, the German Land of North Rhine – Westphalia is reported to have acquired a CD with bank data showing about 50,000 transactions over a total of Euros 70 billion. It is not clear yet that the data all are BCEE data. But the CD has been called of “high quality”. The fact that it was paid Euros 5 million lets suppose that the return on investment will be a high multiple.

The operation is similar to former ones where the Land got access to secret bank data. It is not yet clear if it is also similar to the now classic attack on HSBC Geneva, where Hervé Falciana copied bank data and brought them to the attention of the French authorities.

BCEE reacted to the news calling the operation, if confirmed, a violation of Luxembourg law. It also declares that the bank’s business practices are in compliance with Luxembourg and European regulations.

BCEE Luxembourg is owned 100% by the Luxembourg government. An exceptionally unwelcome situation for the government, not to speak about the inevitable revival of Luxleaks and policies over the last decades.

We'll hear more about this in Luxembourg and Brussels.