51 economies sign pact to fight tax evasion

51 economies signed a pact in Berlin on Wednesday to exchange financial information in order to fight against tax evasion.

By signing the pact which was officially named as Multilateral Competent Authority Agreement, governments were committed to exchanging a wide range of financial information including account balances and beneficial ownership with other participating countries.

The agreement was an outcome of a two-day international meeting on tax transparency, which was hosted in Berlin and coordinated by Organisation for Economic Cooperation and Development (OECD).

"Banking secrecy in its old form has become obsolete," German Finance Minister Wolfgang Schaeuble told the meeting.

According to the agreement, data exchange would start in September 2017 among "early adopters". Others was expected to follow in 2018.

"This (agreement) will make it possible to stamp out the crime of tax evasion and to tackle tax fraud...Tax evaders have two choices - come forward or be caught," a joint statement by the 51 signers read.

"We are making concrete progress toward the G20 objective of winning the fight against tax evasion," said OECD Secretary General Angel Gurria after the signing ceremony.