Luxembourg is about to shed its reputation as one of the EU’s largest tax havens

Cracks to international pressure.

Luxembourg Finance Minister, Luc Frieden, announced today that Luxembourg was willing to share account information on global multi-national companies going forward. This extends current information sharing agreements which are limited to US and EU individual tax payers.

"Luxembourg is comfortable to share information about multinationals as well as individuals," Mr Friedan said. This will help shed Luxembourg’s reputation as one of the EU’s largest tax havens.

According to WealthInsight, Luxembourg is the 5th largest private banking centre in the world with assets under management (AuM) of US$350 billion at the end of 2012.

Luxembourg also had mutual fund assets of US$2 trn and additional bank assets of US$550 bn as of year-end of 2012. These figures together amount to US$2.8 trn, which equates to almost 50 times Luxembourg’s GDP of US$57 bn in 2012.

It also equates to over 30 times the total wealth held by locals in the country (US$91 bn). This is an extremely high ratio when considering that Luxembourg is one of wealthiest countries in the world (in per capita terms).

According to the Credit Suisse Wealth Report, Luxembourg has the 8th highest wealth per capita,in the world at US$178,000 per person. This is well above the worldwide (US$28,000) average. Notably, Switzerland is the highest ranked country based on this measure with wealth per capita of US$293,000, followed by Norway in 2nd place (US$243,000) and Australia in 3rd place (US$239,000). The United States had a wealth per capita of US$172,000.

Going forward, WealthInsight expects Luxembourg private banking AuM to stay remain relatively static at US$350 bn, while countries such as Singapore surge ahead.

Singapore is expected to have private banking AuM of over US$2 trillion by 2020, compared to US$550 bin in 2012 and US$50 bn in 2000.

Photograph: Getty Images

Andrew Amoils is a writer for WealthInsight

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Quiz: Can you identify fake news?

The furore around "fake" news shows no sign of abating. Can you spot what's real and what's not?

Hillary Clinton has spoken out today to warn about the fake news epidemic sweeping the world. Clinton went as far as to say that "lives are at risk" from fake news, the day after Pope Francis compared reading fake news to eating poop. (Side note: with real news like that, who needs the fake stuff?)

The sweeping distrust in fake news has caused some confusion, however, as many are unsure about how to actually tell the reals and the fakes apart. Short from seeing whether the logo will scratch off and asking the man from the market where he got it from, how can you really identify fake news? Take our test to see whether you have all the answers.

 

 

In all seriousness, many claim that identifying fake news is a simple matter of checking the source and disbelieving anything "too good to be true". Unfortunately, however, fake news outlets post real stories too, and real news outlets often slip up and publish the fakes. Use fact-checking websites like Snopes to really get to the bottom of a story, and always do a quick Google before you share anything. 

Amelia Tait is a technology and digital culture writer at the New Statesman.