Financial Transparency Coalition

There is a lot about the world that defies explanation. But if we do know one thing it’s that the world is a complicated place. That answers aren’t always obvious. That you have to look at short-run and long-run dynamics, with the full inter-play of all the forces, to truly begin to understand why things in our world happen as they do. The tragic famine that struck Somalia this summer is no exception to this rule, which occurred as East Africa faced one its worst droughts in 60 years, precipitated by dangerously low rainfall, depleting food supplies, and rising...

WASHINGTON, DC – Senators Carl Levin (D-MI) and Chuck Grassley (R-IA) introduced bi-partisan legislation today, which would require companies to disclose the names of the beneficial owners of corporations and limited liability companies (LLCs) when formed. Anti-money laundering proponents, law enforcement groups, and financial transparency organizations consider the legislation, known as the Incorporation Transparency and Law Enforcement Assistance Act of 2011, a crucial step toward strengthening law enforcement and keeping criminal and tax evading money out of the U.S.

Last week, The Daily Show with Jon Stewart lampooned the failure to implement many elements of the Dodd-Frank Consumer Protection Act, even one year after the law's passage.  One of the most important elements awaiting approval is Section 1504 (also known as the Cardin-Lugar provision), which would require extractive industries to "Publish What they Pay" to governments in gaining access to the natural resources of a country, in order to prevent illegal activities and exploitation.  However, delays from the SEC prevent the regulations from actually being implemented.  Beyond the obvious humanitarian benefits, and improved economic competition that come with transparent...

On Wednesday, the SEC announced a $16 million settlement in an FCPA case filed against Diageo, Inc. The company, which dominates the global liquor market, was accused of spending at least $2.7 million on bribes through its Asian subsidiaries, and omitting or mislabeling those funds in SEC filings. These bribes were given to government and military officials in South Korea, India, and Thailand in order to gain a variety of advantages, from tax breaks to more beneficial policies in transfer pricing negotiations. Bribes included trips to Europe, while one Thai bureaucrat received $12,000 a month for helping...