Monday saw Singapore's Finance Ministry announcing that a new double taxation treaty was signed between Singapore and Britain. The ministry said that the treaty will bring the city-state towards meeting OECD standards on exchange of information.

This deal highlights the third agreement which Singapore has finalized. The agreement emphasizes the new internationally agreed standard for the exchange of information upon request to chase tax evaders, and keeps in track with agreements with New Zealand and Belgium.

It should be noted that strict bank secrecy laws are held by Singapore, which has been publicizing itself as a rival financial centre to Hong Kong to lure banks like UBS, Credit Suisse and Citigroup, in order to deal with money for rich local and foreign clients.

After the treaty with Singapore's Finance Minister Tharman Shanmugaratnam had been signed, Britain's Financial Secretary informed the Treasury's Stephen Timms: "Singapore's firm commitment to transparency and exchange of information is very encouraging, and I call on others to follow their example."

Back in April, the G20 group of successful industrialized and upcoming market nations nodded its head in 'yes' to crack down on countries that remained unsuccessful in helping in the cross-border tax evasion cases.

A 'grey list' of over 30 countries, of which Singapore was one, was published by the OECD at that time. Though the countries had agreed to improve transparency; they, however, had not signed the necessary international accords.

The Organization for Economic Co-operation and Development's (OECD) standard for the exchange of information was endorsed by Singapore in March for tax purposes; and, since then, the country has been renegotiating existing agreements for avoiding double taxation with various countries.