Holding Individuals Accountable and Deterring Money Laundering Act Would Address Anti-Money Laundering Deficiencies and “Too Big To Jail” Problem at American Banks; Bring U.S. in Line with International Standards
Incorporation Transparency and Law Enforcement Assistance Act Would Tackle Anonymous U.S. “Phantom Firms”
WASHINGTON, DC – Global Financial Integrity (GFI) welcomed the introduction late Wednesday night in the U.S. House of Representatives of two pieces of legislation aimed at stemming the flow of trillions of dollars in dirty money through the U.S. financial system. The Washington, DC-based research and advocacy organization noted that the two bills would bring the United States in line with certain international anti-money laundering (AML) standards, target individuals responsible for laundering money, and bring an end to the abuse of anonymous U.S. shell companies.
The US is the second easiest country to open a money laundering firm in. And despite tax reforms, the government is perilously behind in the movement for corporate transparency
In March 2010, facing high unemployment in the wake of the largest financial crisis since the 1930s, the US Congress passed the Hiring Incentives to Restore Employment Act (Hire), hoping to stimulate the American job market. While the Hire act dominated news headlines at the time, a lesser-known provision of the legislation, known as the Foreign Account Tax Compliance Act (Fatca), was included in the bill as a means of paying for the stimulus measure. Few people remember the Hire act; Fatca was a real game changer.
GFI President Raymond Baker delivers remarks at the “Human Rights and Economic Justice: Essential Elements of the Post-MDG Agenda” conference at Yale University on October 18, 2013. Mr. Baker’s remarks provide an overview of the issue of illicit financial flows, and he explains how it plays into the Post-2015 Development Agenda.
One of the biggest advancements in curtailing illicit financial flows to date is the US Foreign Account Tax Compliance Act (Fatca) signed into law in March 2010. The law required foreign financial institutions to report to the US government information on all of their US clients. Almost immediately, foreign governments demanded the same from the United States, leading to a flurry of intergovernmental agreements between the US and foreign nations — many of them developing countries — establishing a system of automatic exchange of tax information.
In order for the law to work effectively, and in order for developing nations to benefit from it, each of these intergovernmental agreements needs to be negotiated and signed both by US treasury department officials and by their foreign counterparts. Unfortunately, with the US government shutdown for more than two weeks, those treasury department officials are unable to do their jobs.
Senators Levin, Whitehouse, Begich, Shaheen Introduce Legislation to Close Offshore Tax Loopholes and Foster Transparency
WASHINGTON, DC – As congressional leaders weigh presenting an overhaul of the U.S. tax code, Senators Carl Levin (D-MI), Sheldon Whitehouse (D-RI), Mark Begich (D-AK), and Jeanne Shaheen (D-NH) introduced legislation Thursday to increase transparency in the financial system and close several offshore tax loopholes. While the Joint Committee on Taxation estimates the bill would generate roughly $220 billion in U.S. government revenue over ten years, Global Financial Integrity (GFI) particularly welcomed the Stop Tax Haven Abuse Act (STHAA) for its impact on developing nations, which lose nearly $1 trillion per year in illicit outflows of money due to tax haven secrecy.
Hosted by Rep. Maxine Waters, CBC Foundation Forum to Discuss Rethinking Mandatory Minimums for Drug Crimes and Targeting Money Laundering and Major Drug Traffickers
Opening Keynote Address to Be Delivered by U.S. Attorney General Eric Holder
EVENT ADVISORY
WASHINGTON, DC – Heather Lowe, Legal Counsel and Director of Government Affairs at Global Financial Integrity (GFI), is slated to appear on a panel Thursday afternoon at the Congressional Black Caucus Foundations’ Annual Legislative Conference, discussing the importance of refocusing U.S. law enforcement policies on targeting money laundering and major drug traffickers. Hosted by the Honorable Rep. Maxine Waters (D-CA), the panel discussion will follow opening remarks delivered by U.S. Attorney General Eric Holder.
Transparency Advocates, Small Business Groups, Investors, Labor Unions Hail New Legislation as Key to Curtailing Crime, Corruption, Fraud, Tax Evasion
WASHINGTON, DC – The Financial Accountability and Corporate Transparency (FACT) Coalition applauded today’s introduction of bipartisan legislation in the U.S. Senate crucial to stemming the flow of dirty money hidden behind anonymous American shell companies. The alliance of civil society organizations, small business groups, investors, and labor unions urged lawmakers to move quickly to pass this critical piece of legislation.
GFI Optimistic That Decision Will Not Ultimately Prevent Implementation of Strong Extractives Transparency in the United States
Organization Urges U.S. Securities and Exchange Commission to Promptly Revise and Reissue Rules
WASHINGTON DC – Global Financial Integrity (GFI) expressed disappointment today at the decision by Judge John D. Bates of the United States District Court for the District of Columbia to vacate key extractive industry transparency rules. The decision prevents the rules from taking effect until the Securities and Exchange Commission (SEC) revises the rules to address the court’s concerns.
The rules—which the SEC finalized last summer after two years of deliberation—implemented Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Also known as the “Cardin-Lugar provision,” this statute requires all oil, gas, and mining companies that report to the SEC to publicly disclose all of the payments they make to governments worldwide. The rules took effect in September of this year despite the lawsuit, with companies due to file their first reports in 2014.
