Uruguay seeks support for banking secrecy reform

[Judi Lynn]

Uruguay seeks support for banking secrecy reform
By Conrado Hornos

MONTEVIDEO, Oct 4 (Reuters) - Uruguay's government is negotiating with the opposition over a bill to reform the country's banking secrecy rules, a drive that responds to global pressure to crack down on tax cheats.

The proposal has faced resistance from rightist lawmakers and banking groups in Uruguay, which is listed by the Organization for Economic Cooperation and Development (OECD) on its "gray list" of tax havens that have not fully implemented global transparency and data-sharing standards.

Under current rules, banking secrecy can only be lifted as part of a criminal fraud investigation. The reform proposal, which could be debated in the Senate next week, would extend that to cases of suspected tax evasion.

Banking secrecy is a sensitive issue in the South American nation because it forms a pillar of the financial system, so the center-left government is keen to get broader backing for the measure even though it controls Congress.

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