MONACO REACHES OUT ON TAX HAVEN COOPERATION

UNCLAS MARSEILLE 000005 STATE FOR EEB/IFD/OMA AND EUR/WE TREASURY FOR OIA AND OTP/ITA NSC FOR HENNESSEY-NILAND E.O. 12958: N/A TAGS: EINV EFIN ECON PREL FR SUBJECT: MONACO REACHES OUT ON TAX HAVEN COOPERATION ¶1. (SBU) On March 30, Monaco's Minister of State (Prime Minister-equivalent) Jean-Paul Proust telephoned CG. Proust said he wanted to pass the message that the Government of Monaco is fully engaged with the EU on "tax haven" matters already, but they are also fully disposed to engage on this issue with the US. He wanted to be sure we know that their negotiations with the EU are not restrictive and that they are ready to work with the U.S. directly. ¶2. (U) In mid-March, the Paris economic daily, Les Echos, reported that in the run-up to the G20 summit in London, Proust is leading Monaco's effort to ensure that it is not on the OECD's tax haven "black list." Les Echos quoted Proust as saying "The principality is ready to increase its cooperation in the fight against tax fraud....As soon as there is a suspicion of money laundering, of a swindle or any kind of fraud whatsoever, no (banking) secrecy exists." ¶3. (SBU) Bio Note: Proust, 69, had a long career as a French civil servant, serving as prefet of the Bouche du Rhone department and the Rhone-Alps-Cote d'Azure region, covering the area from Marseille to the Italian border, from 1997 to 1999. He then became chief of staff to Interior Minister Jean-Pierre Chevenement, 1999-2000, and subsequently took over responsibility for the greater Paris police department, 2001-2004. He became Minister of State in Monaco on June 1, ¶2005. Following the 2002 Monegasque constitutional reform, the Prince of Monaco no longer has to choose from a list of senior French civil servants when filling the post, but he still must consult with the French government before doing so. According to the press, Proust is close to French presidential advisor, Henri Guaino. As Prefect of Police of Paris, he had frequent dealings with Nicolas Sarkozy who was Interior Minister 2002-2004. RILEY