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Austrian Parliament Falls Short Of Loosening Bank Secrecy Laws



VIENNA (AFP)--Austrian members of parliament failed Wednesday to approve a resolution relaxing the country's strict banking secrecy laws, which came under fire this year.

The amendment needed two-thirds of the vote to pass. The ruling Socialists and conservatives were unable to secure the support of any of the opposition parties.

The resolution has been sent back to committee and now will not be adopted before the autumn, since Parliament begins its summer recess at the end of this week.

Austria's banking secrecy came under fire from the Organization for Economic Cooperation and Development earlier.

But Vienna said in March it would supply information about individual bank accounts if suspicions were justified, in a bid to be taken off the OECD's "grey list" of tax havens.

Up til then, Austria had only supplied such information if criminal procedures had been launched against an individual and a court order had been issued.

Apart from relaxing its banking secrecy, Austria must also sign a series of bilateral agreements to satisfy the OECD.

Wednesday, Finance Minister Josef Proell said opposition parties would be responsible if Austria remained on the OECD's grey list.

Along with the Socialists, he accused opposition deputies of covering up tax evasion.

The far-right Alliance for Austria's Future and the environmental Greens, in an unusual alliance, called for more power for the Austrian Audit court in exchange for their vote on relaxing the banking secrecy laws.

The other far-right party, the Freedom Party, refused to approve the resolution, claiming it would only create problems for small savers.

-Dow Jones Newswires; 212-416-2900


  (END) Dow Jones Newswires
  07-08-091519ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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