The accords call for exchange "on request".
Monaco is joining Switzerland, one of the countries that told the organization in the last few weeks that it would abide by the standards outlined under Article 26 of the organization's Model Tax Convention, which requires the tax authorities to exchange information on request if there is probable cause to suspect tax evasion.
More importantly, the convention doesn't require the automatic exchange of information, but rather exchange "on request", which has proven ineffective (because, in a classic Catch-22 situation, the requesting country often needs much of the information it is seeking in order to put together a request that meets the requirements of the jurisdiction where the untaxed money is thought to be stashed).
The government did recently agree to sign an OECD tax convention, but this calls only for "on request" (not automatic) exchange of information.
Bilateral tax treaties normally require such exchanges only on request.
Austria and Luxembourg fear losing lucrative business if Switzerland exchanges information only on request, while they do so automatically.
Since 1994, Russia and the United States have routinely exchanged requests for background information on residents traveling between the two countries on visa, criminal or terrorism issues.
He said: "They are now agreeing to tax exchange of information, not just on request but what matters is automatic exchange of information.
"They are now agreeing to exchange of tax information, not just on request, but on what matters – automatic exchange of information".
