Financial Transparency Coalition

WASHINGTON, DC – As G20 leaders gather in Moscow to discuss continued global economic instability and the pressing need for increased growth, the Financial Transparency Coalition (FTC) urges them to consider recent milestones as a foundation for action.

“Moscow’s G20 focus on ‘growth through trust and transparency’ as one of three summit priorities is commendable. Without greater transparency in financial markets, the chances of a real global financial recovery – one that benefits poor and rich alike – remain slim,” said Porter McConnell, Manager of the Financial Transparency Coalition. “Corruption, tax evasion and aggressive tax avoidance do very real damage to people and communities around the globe. If G20 leaders ignore the corrosive effects of a dysfunctional financial system, they will be imperiling the global growth and stability they seek to establish,” she added.

An important recent step towards the implementation of financial transparency measures was China’s signing of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Now that all G20 countries have signed this agreement, which has the potential to rein-in aggressive tax evasion and avoidance, we hope that G20 countries will move forward with implementation and oversight of the convention.

The FTC is also encouraged that the G20’s Working Group on Anti-Corruption will see its initial 2-year tenure extended to become a permanent fixture within the organization, and urges G20 leaders to also ensure continued adherence to Financial Action Task Force (FATF) regulations on money laundering. Following FATF regulations to prevent money laundering is critical as it facilitates international crimes including narcotics, illegal weapons trade, and terrorism, and is also a key tool for tax evasion.

At the G8 Lough Erne summit in June, those governments committed to implement individual national action plans on the transparency of company ownership. The FTC believes G20 leaders now have an opportunity to further their own commitment to mandatory public registers of beneficial ownership of trusts and companies.

Because accountability is an essential element of any democratic society or organization, the FTC is extremely concerned at the recent trend of clamping-down on civil society organizations in Russia and elsewhere. It is our fervent hope that civil society groups will continue to be able to function without intimidation so that they may continue to help ensure that world leaders are held accountable for meeting the economic and social needs of citizens.

“Governments and private actors have begun to show a willingness to adapt to the demands of the inter-connected financial system of the 21st century. Change isn’t always easy, but in this case it is necessary. We urge G20 leaders to rise to the challenge this week and next year in Australia,” McConnell concluded.

For Further Information or to Request Interviews Please Contact:

Moscow: Maggie Murphy Tel. +49 152 1161 4041 mmurphy@transparency.org
Global Outreach, Advocacy and Campaigns Coordinator at Transparency International, member of the Financial Transparency Coalition

United States: Dietlind Lerner: +1 202 577 3455 dlerner@financialtransparency.org

Europe: Nick Mathiason: +44 (0) 77 99 348 619 nmathiason@financialtransparency.org

Notes to Editors:

1) The Financial Transparency Coalition (FTC) consists of over 150 organizations across the globe and is led by Christian Aid, Eurodad, Global Financial Integrity, Global Witness, Tax Justice Network and Transparency International. This coalition works together with a panel of governments and a group of experts to address opacity in the international financial system, which creates inequalities that harm billions of people.

2) The FTC was formerly known as the Task Force on Financial Integrity and Economic Development.