Financial Transparency Coalition

Task Force coordinating committee member Global Witness released Grave Secrecy today, a report telling the story of companies which were used to launder the proceeds of corruption, tax evasion and other crimes. The report shows how shell companies based the UK, Bulgaria, and New Zealand were used to launder corrupt money originating from Kyrgyzstan's AsiaUniversialBank.

This week the heads of state from the G20 are meeting in Mexico, where we hope they will take action to meet their 2009 promise to end bank secrecy. One step already taken is making tax evasion a predicate offence for money laundering. What does that mean? Money laundering is defined as taking the proceeds of a crime and making them legitimate.

The Financial Crimes That Are Destroying The Economy Of The Developing World Fast Company, June 14, 2012 Indian Telecom Company Bharti Airtel Ordered To Pay Rs 7 Billion For Tax Evasion International Business Times, June 15, 2012 Tax avoidance campaigners can challenge Goldman deal BBC, June 13, 2012 Punjab tightens its noose on tax evaders

The developing world has long been plagued with poverty, political turmoil, and corruption. This vicious cycle has been extensively researched, combated, and discussed from many different angles, but nothing has been able to completely ‘solve’ it. While it is unrealistic to seek a blanket solution to the issues that keep countries perpetually poor and unstable, one must look at the wider spectrum of developmental issues and ask, “Why do they persist?” Oscar Abello brings to light one huge reason why they do: financial opacity.