Honourable Members of the OSCE Parliamentary Assembly,
Ministers and Authorities,
Mr. Deputy Secretary General of the Organization for Economic Cooperation and Development,
Distinguished guests,
It is a honour for me to take part in the 2010 Fall Meeting of the Parliamentary Assembly of the Organization for Cooperation and Security in Europe here in Palermo, which I am sure will be another milestone in the important and extended work carried out by this Organization.
I am particularly glad to participate in the section thereof centered upon the fight against corruption, an endeavour that is key to the strengthening and consolidation of democratic institutions, one of OSCE’s main objectives.
Fight against corruption must be a priority for every country in the world and it is crucial for any democracy to be able to succeed in this fight. We have to intensify our efforts, both at the national and at the international level, in order to further develop and effectively implement strategies for combating this worrisome and devastating phenomenon, which undermines social and economic development in all societies. We must also harmonize the work of the various fora at national, regional and global levels so that they complement one another towards the full implementation of our common objectives in this field.
In the last two years the Republic of San Marino has taken several important steps in order to contribute to the action taken by the international community to tackle such urgent issue, both at domestic and at international level.
Since its appointment in December 2008, the San Marino current Government has been deeply committed to a process of greater transparency and, since April 2009, it has signed a significant number of Tax Information Exchange Agreements (TIEAs) and Double Taxation Agreements (DTAs) according to the 2005 OECD standards with several countries and jurisdictions. As a consequence, on 23 September 2009 San Marino was placed in the OECD white list. Since that date, the ongoing commitment of the Government, also in the framework of the newly restructured OECD’s Global Forum on transparency and exchange of information, led to the signature of several other DTAs and TIEAs, reaching now the number of 27.
Indeed, as of today, San Marino has signed 9 DTAs or Protocols bringing the pre-existing DTAs in line with the latest OECD standards (Austria, Belgium, Hungary, Liechtenstein, Luxembourg, Malaysia, Malta, Romania, and Saint Kitts and Nevis) and 18 TIEAs (Andorra, Argentina, Australia, Bahamas, Denmark, Faeroes Islands, Finland, Iceland, France, Germany, Greenland, Monaco, Netherlands, Norway, Samoa, Spain, Sweden and United Kingdom).
In its Report to the G20 Finance Ministers Meeting in Washington D.C. on April 22-23, 2010 OECD’s Secretary General acknowledged that San Marino, as well as 11 other countries, “have passed legislation aimed at implementing their commitments to the international tax standard”.
The San Marino Government considers these important steps as a starting point and is currently negotiating agreements (DTAs and TIEAs) with 32 further jurisdictions. Furthermore, it is an active member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, as emerges from its participation in the Peer Review Process.
Furthermore, on 14 June 2010 San Marino adhered to the OECD Declaration on Propriety, Integrity and Transparency in the conduct of International Business and Finance, adopted at the Council Meeting at Ministerial Level on 28 May 2010, which sets propriety, integrity and transparency as the keystone of efficient and healthy markets and economies.
At domestic level, the San Marino Parliament amended in January 2010 the law on Bank Secrecy to allow an effective exchange of information according to the TIEAs an DTAs provisions (Law no. 5 of 21 January 2010).
In the last few years, San Marino has also taken and continues to take clear action in the context of the Committee of Experts of the Council of Europe on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) and the Financial Action Task Force (FATF). We have greatly improved our AML/CFT regime and have undertaken great efforts to ensure compliance with FATF Recommendations.
With respect to MONEYVAL, the San Marino Government and Parliament have adopted resolute and far-reaching measures in order to address the concerns voiced by this organization and has timely and effectively responded to its requests, thanks to the collaboration of all the national authorities concerned.
The action taken by the San Marino Government and Authorities has also been acknowledged and highly praised by FATF, which did not include San Marino in the list of countries subject to strict monitoring. This list was disclosed during the FATF Plenary Session of 25 June 2010.
In the specific context of OSCE, in November 2009, San Marino allocated funds in order to contribute to an anti-corruption project in Montenegro organized by the OSCE Mission to Montenegro and the Directorate for Anti-Corruption Initiative. This project, also thanks to San Marino’s support, was successfully finalized and recently launched.
During its sitting of 1 June 2010 the San Marino Parliament ratified the United Nations Convention against organized transnational crime, the Additional Protocol to the United Nations Convention against organized transnational crime to prevent, suppress and punish Trafficking in Persons, especially Women and Children and the Protocol against the Smuggling of Migrants by Land, Air and Sea, supplementing the United Nations Convention against Transnational Organized Crime, which were signed in Palermo on 14 December 2000.
Moreover, on 22 July 2010 the Parliament ratified the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism, adopted in Warsaw on 16 May 2005, which will enter into force on 1 November 2010.
Finally, on 13 August 2010 San Marino joined the Partial Agreement of the Council of Europe establishing the Group of States against Corruption (GRECO) as its 48th member. In order to ensure full and active participation to GRECO, one of today’s leading anti-corruption monitoring body, San Marino is in the process of drawing up some legislative proposals aimed at amending and supplementing its legislation in the relevant fields.
I add that the Parliament recently passed a significant number of laws aimed at the elimination of anonymous companies (Law no. 98 of 7 June 2010), the strengthening of instruments for combating tax fraud and offences (Law n. 99 of 7 June 2010) and changing the legislation on rogatory letters and judicial assistance in criminal matters in order to improve judicial cooperation with the authorities of other countries (Law no. 128 of 23 July 2010).
Moreover, through an administrative provision already in force since 26 April 2010, measures for combating missing trader fraud have been adopted.
As far as the banking and financial sectors are concerned, normative and structural measures will be adopted shortly with a view to strengthening supervision and independence of the Central Bank, in line with International Monetary Fund guidelines and in order to prevent and combat any phenomenon that could lead to distortions in financial relations. A draft bill aimed at the revision of the Statute of the Central Bank has been already examined by Parliament in first reading on 23 July 2010.
I stress that we are aware of the importance of the fight against corruption for the preservation of our ancient democracy. Corruption attacks democracy at its roots, since decisions are no longer taken in the interest of the community but in the interest of a few people and – quite often – to the detriment of the society as a whole.
For that reason, we have also recently introduced a legislation providing for phone recording under the control of the judicial authority for combating crimes, like corruption, that is nearly impossible to detect without using such technique. I have to confess that in a small country like mine, always afraid of any limitations to freedom, the introduction of a legislation on the matter took a number of years. However, today’s need to combat in the most effective way transnational crime and to ensure the best possible cooperation with the authorities of other countries has convinced the population of the need for such adoption.
As emerges from this presentation, transparency is today a main concern of the political agenda in San Marino. As OSCE members, we share the mission of promoting prosperity and good governance in our State and transparency is the key to the fulfilment of these objectives.
However, only a joint effort by all the international community can ensure the eradication of crimes having ancient roots and presenting a great capacity of their authors to understand when to move and where to move in order to thrive.
And I remain convinced that both at the national and at the international level only the capacity of Governments, Parliaments and the societies to work together looking at the same objective with the aim of reaching the important result of eradicating corruption and other major crimes can ensure the required change of mentality, without which I’m afraid that even the best legislation risks to remain unattended.
Thank you for your kind attention.
Antonella Mularoni
Minister for Foreign and Political Affairs,
Communications and Transport of the Republic of San Marino
