Eva Joly
Global Financial Integrity
On May 4, the Obama administration announced a plan to crack down on offshore tax havens, which it said are costing the United States tens of billions of dollars each year. The President’s proposals were primarily aimed at finding ways to increase revenue from wealthy companies and investors who use loopholes in the law and offshore subsidiaries to reduce their US taxes. But the administration is largely missing a far more devastating problem related to offshore finance: money gained from criminal and other illicit sources. With the use of tax havens and other elements of an increasingly complex “shadow” financial network, vast sums of illegal money are being shifted throughout the global economy virtually undetected.
The United States Justice Department recently announced the arrest of 1,200 individuals on narcotics charges as part of the four-year, multi-agency law enforcement investigation targeting Mexian drug cartel La Familia known as “Project Coronado.” In addition to arrests, law enforcement agents confiscated $3.4 million in U.S. currency, 729 pounds of methamphetamine, 62 kilograms of cocaine, and 967 pounds of marijuana.
WASHINGTON, DC — Global Financial Integrity (GFI) applauds the on-going work of the U.S. Department of Justice and the Internal Revenue Service towards bringing wealthy tax evading citizens to justice. Following the release today of the previously confidential “annex” of criteria UBS will use to choose which accounts it remits information on, GFI urges consideration of further comprehensive reform of global financial protocols as significant shortcomings remain in the diplomatic and regulatory landscape.
Krishen Mehta
Global Financial Integrity
What Can Be Done about This Major Source of Poverty?
What are some examples of major global issues that are still unresolved today? One can say that they are the environment and the effect of climate change, the arms race and resultant proliferation of nuclear weapons, the pressure on the earth’s resources in terms of food and water, and the challenges that societies face with respect to education and healthcare.
But there is one very important issue the public is not generally aware of. It has the effect of increasing poverty in developing countries, and making it more difficult for them to invest in infrastructure, healthcare, education, and other priorities. And that is the outflow of capital from developing countries through corruption, business mispricing, money laundering, and other means.
WASHINGTON, DC — As the Group of Twenty Finance Ministers meet tomorrow in St Andrews, Global Financial Integrity (GFI) urges leaders to acknowledge the devastating link between illicit financial flows from developing countries, secrecy jurisdictions (tax havens), and global poverty.
Expert Will Urge Senate to End U.S. Corporate Secrecy, Help Law Enforcement Fight Money-Laundering, Terrorism
WASHINGTON, DC – Global Financial Integrity (GFI) Advisor and Tax Justice Network – USA (TJN-USA) Chairman Jack Blum will testify tomorrow morning before the U.S. Senate Committee on Homeland Security and Government Affairs in support of S. 569, the Incorporation Transparency and Law Enforcement Assistance Act.
WASHINGTON, DC – According to a new analysis of financial jurisdictions prepared by UK-based civil society group Tax Justice Network, the state of Delaware is the most secretive financial jurisdiction in the world. Based on the laws and practices of 60 financial jurisdictions the Financial Secrecy Index (FSI) ranks jurisdictions according to their level of secrecy and the extent to which they cooperate with tax authorities in other countries.
WASHINGTON, DC — Global Financial Integrity (GFI) Director Raymond Baker issued the following statement following the news of Mr. McDonald’s passing:
