Monday, October 26, 2020

Cayman Islands tops EU’s blacklist of tax havens

-

British overseas territory the Cayman Islands, the United States and Switzerland do most to help the globe’s richest citizens hide and launder money, according to a ranking published on Tuesday by a group pushing for reform.

The study by the Tax Justice Network tests how much countries’ legal and financial systems enable the hiding of wealth by checking, for example, on money-laundering laws, controls and the amount of financial activity in a country.

The research comes amid a renewed debate around financial reform, following scandals in Europe involving Russian money using the Baltics as a stepping stone to the western world.

Alex Cobham, chief executive of the Tax Justice Network, said the “Anglo-American axis of secrecy” was exacerbating corruption and tax abuse.

- Advertisement -

In its analysis, the study’s authors said the Cayman Islands was part of what it dubbed Britain’s ‘spider web’ of satellites, where London influences laws and the appointment of officials.

A document showed on Tuesday that European Union finance ministers have added the territory to the EU’s blacklist of tax havens, along with Panama, the Seychelles and Palau.

The Cayman Islands, which is close to Cuba and was ranked in the study as the most prominent center for financial secrecy, hosts more than 100,000 companies, a number that outstrips the local population.

Its government said the TJN study ignored the fact that it met global standards, adding that it did not work “in secret” but cooperated with authorities around the world.

- Advertisement -

The British government said it was driving greater tax transparency globally and that the Cayman Islands was free to set its own taxes.

The study also singled out the United States for criticism, saying that although Washington had pushed other countries to reform, it had not done enough to stamp out illicit money flows at home, flagging secretive shell companies in some states.

The Tax Justice Network put Switzerland in third place in its ranking behind United States, saying its bank secrecy reform to share financial information with foreign authorities applied largely to rich countries rather than poor ones.

A Swiss government spokeswoman said it applied international standards and that its achievements were recognized by pan-national bodies. The U.S. Treasury did not respond to requests for comment.

The Tax Justice Network, which was set up in 2003 and funds itself from grants and donations, has successfully lobbied for greater exchange of information internationally between tax authorities.

MUST READ

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Two U.S. Navy service members get prison for defrauding military insurance program

Two U.S. Navy service members were sentenced in San Diego federal court Friday for their roles in an insurance fraud scheme that involved making false medical claims to...

Swiss court upholds money-laundering conviction of ex-Ukrainian lawmaker Martynenko

A Swiss court has upheld the conviction of former Ukrainian lawmaker Mykola Martynenko for laundering via Swiss banks millions of dollars worth of kickbacks...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks