Financial Transparency Coalition

WASHINGTON, DC — The Task Force on Financial Integrity and Economic Development urges the G20 to focus on substantially improving transparency in the global financial system. Thus far in communiqués, discussions, and commentaries, greater emphasis has been given to strengthening regulation within the existing structure. While regulatory improvements are clearly needed, we believe that such steps alone are incomplete. If “the era of bank secrecy is over,” then more effective progress toward this goal can be accomplished by significantly curtailing the shadow financial system.

Last week was not kind to tax evaders. Liechtenstein agreed an information-sharing treaty with the UK that, should it serve as a model for the principality’s deals with other countries, would put it out of the tax-haven business. The OECD recognised the Cayman and British Virgin Islands as having implemented the organisation’s tax standards. The US forced more names of suspected tax evaders out of Swiss bank UBS. The war on tax piracy is making progress.

The summit meeting which is taking place in L’Aquila, Italy, at which the Group of 8 (Britain, Canada, France, Germany, Italy, Japan and the United States) is joined by South Africa, Brazil, China, India, Mexico and Egypt, will be the first since we realized the extent of the financial and economic crisis we are facing.

Our good friend and Task Force member, Richard Murphy, has gotten ahold of the UK/France Summit Communiqué and points out some very exciting language. 1st - both countries acknowledge that 12 TIEA agreements to do not a clean jurisdiction make. And 2nd - both countries call on the OECD to look at the benefits of country-by-country reporting. From the communiqué (emphasis added by Richard Murphy):

France and the United Kingdom will also address the task of implementing the decision of the G20 concerning uncooperative jurisdictions and remain vigilant in ensuring that the...