U.S. Government Fails Again to Hold Individuals Accountable for Wanton Violations of U.S. Sanctions Law, Providing No Deterrent to Future Misconduct
Settlement Fits Same Mold as Previous Cases, Perpetuates “Too Big to Jail”
WASHINGTON, DC – Global Financial Integrity (GFI) expressed skepticism today that the settlement reached between the United States government and BNP Paribas SA would effectively punish the company for its systematic subversion of U.S. sanctions over a decade-long period or effectively deter similar conduct in the future.
U.S. Attorney General Eric Holder announced late on Monday that “between 2004 and 2012, BNP engaged in a complex and pervasive scheme to illegally move billions through the U.S. financial system on behalf of sanctioned entities” in Sudan, Iran, and Cuba, going “to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities.” This pattern of behavior continued despite warnings by U.S. officials, opinions from reputable international law firms, and repeated statements from the bank’s own compliance officials that this conduct was illegal. According to the New York Department of Financial Services, the transactions involved totaled greater than $190 billion.
Council of the European Union Approves Text and Timetable for Directive, Including Crucial Measures on Beneficial Ownership Transparency.
WASHINGTON, DC – Global Financial Integrity (GFI) praised the Council of the European Union for continuing today the EU’s movement towards cracking down on anonymous companies, a major conduit for laundering the proceeds of crime, corruption, and tax evasion.
The Council, which is composed of government ministers from each EU member country, agreed on a revised text of changes to the EU’s Anti-Money Laundering Directive (AMLD), which will now return to the Parliament for a second reading and negotiations with the Council on final wording. The Council text retains the requirement, which the European Parliament overwhelmingly approved in March, that companies and trusts formed in every EU country disclose their “beneficial owners,” or the natural persons who ultimately own or control them, to a central authority.
“We strongly praise the Council for its movement to crack down on anonymous companies,” said GFI President Raymond Baker, a longtime authority on financial crime. “As our research notes, nearly $70 billion flowed illegally into or out of emerging EU economies in 2011. Anonymous companies are the number one tool for laundering the proceeds of crime, corruption, and tax evasion. Creating registries of the true, human, ‘beneficial’ owner of each company—as the Council endorsed today—is a common sense approach to curbing financial crime and the tremendous flow of illegal money.”
Civil Society Experts Call on Delaware to Create Public Registry of Beneficial Ownership Information
WASHINGTON, DC – Global Financial Integrity (GFI) and Global Witness expressed disappointment that the Delaware House of Representatives passed two bills this evening that do little to stop criminals from using Delaware companies to launder their illicit proceeds.
The two pieces of legislation are House Bill 327 and House Bill 328, which would establish a chain of people that need to be consulted, in turn, in order to identify a person at a limited liability company or limited partnership who has a list of the entity’s legal owners. Legal owners may be other companies with hidden ownership or nominees, which are essentially front people for the real owner. The bills will now proceed to the State Senate for consideration.
“These bills are little more than window-dressing,” stated Stefanie Ostfeld, Senior Policy Advisor at Global Witness. “Anonymous companies lie at the heart of many of the world’s worst problems, and this legislation will do nothing to pull back the curtain on who owns and controls Delaware companies.”
E.J. Fagan, +1 202 293 0740 ext. 227
GFI Urges G7 Leaders to Push for an Illicit Financial Flows Goal in the Post-2015 Sustainable Development Agenda
GFI Calls for Implementation Assessments on Beneficial Ownership Commitment to Be Published by End of 2014
WASHINGTON, DC – G7 leaders meeting in Brussels reiterated their commitment to curtailing illicit financial flows stemming from crime, corruption, and tax evasion in a communiqué released today, as Global Financial Integrity (GFI) called on world leaders to push for an explicit illicit financial flows commitment in the post-2015 Sustainable Development Goals (SDGs).
Fraudulent Trade Transactions Channeled at Least US$60.8 Billion Illegally in or out of 5 African Countries from 2002-2011
Tax Loss from Trade Misinvoicing Potentially at 12.7% of Uganda’s Total Government Revenue, followed by Ghana (11.0%), Mozambique (10.4%), Kenya (8.3%), & Tanzania (7.4%)
COPENHAGEN, Denmark / WASHINGTON, DC – The fraudulent misinvoicing of trade is hampering economic growth and potentially resulting in billions of U.S. dollars in lost tax revenue in Ghana, Kenya, Mozambique, Tanzania, and Uganda, according to a new report published Monday by Global Financial Integrity (GFI), a Washington DC-based research and advocacy organization. The study—funded by the Ministry of Foreign Affairs of Denmark—finds that the over- and under-invoicing of trade transactions facilitated at least US$60.8 billion in illicit financial flows into or out of the five African countries between 2002 and 2011.
Trade Misinvoicing Drained US$763.4bn from Poor Countries in 2011, according to GFI Research
Influential News Weekly Features GFI’s Research & Experts in Latest Issue
WASHINGTON, DC – The latest issue of The Economist profiles the problem of trade-based money laundering, which drains hundreds of billions of dollars from developing economies each year, according to Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization. The prestigious financial news magazine cites heavily from GFI’s research and experts, while warning that efforts to tackle trade misinvoicing are “the weakest link” in the international effort to fight illicit financial flows.
Follows Prime Minister’s Move to Create Public Registry of Beneficial Ownership for All UK Companies
Pressure Continues to Rise on U.S. Government to Follow Suit
WASHINGTON, DC – Global Financial Integrity (GFI) lauded UK Prime Minister David Cameron today for urging all British Overseas Territories and Crown Dependencies in a letter today to crack down on the abuse of anonymous shell companies by creating public registries of meaningful beneficial ownership information. The letter follows recent moves by the UK Government, which is currently in the process of creating the world’s first such public registry to do the same.
European Vote Increases Pressure on White House & Congress to Move
Full EU Parliament Endorses Creation of Public Registries of Beneficial Ownership Information; Follows Earlier Committee Votes
European Council Should Endorse Move to Curb Phantom Firms in Negotiations with Parliament
WASHINGTON, DC – Global Financial Integrity (GFI) praised the full European Parliament for voting today to crack down on anonymous shell companies, a major conduit for laundering the proceeds of crime, corruption, and tax evasion.
Following similar votes by two committees of the EU Parliament last month, the full legislative body voted today in favor of requiring public registries of beneficial ownership information for companies incorporated in the EU, as part of its revisions to the EU’s Anti-Money Laundering Directive (AMLD).
