Members of the Task Force on Financial Integrity and Economic Development and other signatories identified three key points for the Financial Action Task Force (FATF) to consider at its upcoming plenary meeting this month in a letter sent on June 11.
First, the Task Force on Financial Integrity and Economic Development offered suggestions on how to respond to FATF Recommendations 33 and 34, which are still debated. Recommendation 33 states the following:
Countries should take measures to prevent the unlawful use of legal persons by money launderers. Countries should ensure that there is adequate, accurate and timely information on the beneficial ownership and control of legal persons that can be obtained or accessed in a timely fashion by competent authorities. In particular, countries that have legal persons that are able to issue bearer shares should take appropriate measures to ensure that they are not misused for money laundering and be able to demonstrate the adequacy of those measures. Countries could consider measures to facilitate access to beneficial ownership and control information to financial institutions undertaking the requirements set out in Recommendation 5.
On June 11, the Task Force on Financial Integrity and Economic Development Coordinating Committee members and other signatories sent a letter to the Financial Action Task Force (FATF) urging them to consider various points at its upcoming plenary meeting.
These days it seems as though word of a country’s economic crisis is commonplace. The world watched as Greece unexpectedly veered toward bankruptcy, and then other European Union (EU) countries—namely Portugal, Ireland, Italy, and Spain—were eyed with suspicion. Dr. Dev Kar, Global Financial Integrity‘s lead economist, writes that “Portugal lost a total of about US$138 billion through illicit transfers over a five-year period ending 2009″ in an article published today in The Portugal News. Here it goes again…
Photograph by Andrea Guerra
With the global economy already on unstable ground, Greece’s economic crisis created doubt in the EU and spurred fears that the crisis might spread to other EU countries and even, possibly, the United States. Few saw Greece’s downturn coming, but as the true magnitude of their government debt has been released, few can avoid the seriousness of the issue. But how did we get here? And where did all of Greece’s money go?
In a blog post last month, Dr. Kar wrote that illicit financial flows “cost Greece an estimated US$160 billion over the last decade.” With Greece unable to tax the illicit money coming and going, the money needed for their consumption boom came in the form of external debt. Within the past decade, this debt jumped from a manageable 73% of GDP to almost 160% of GDP.
Global Financial Integrity released the following statement today.
WASHINGTON, DC — Pieces authored by Global Financial Integrity (GFI) director Raymond Baker and GFI director of government affairs Heather Lowe appear in the latest issue of the American Interest. The July/August edition of the bimonthly publication hits newsstands this week and may be viewed online at http://www.the-american-interest.com/.
In his piece, “Transparency First,” Mr. Baker discusses the on-going process of reform to the global financial system, including regulatory reform for banks and other financial institutions.
The range of current ideas for correcting flaws in the national and global financial system is extensive,” writes Baker. In lieu of “incremental changes that will leave holes big enough for the global economy to fall through again,” Baker explains how “transparency based reform accomplishes far more, far faster than regulation and oversight,” and could be the best insurance against another global financial meltdown.
Mr. Baker outlines a plan for legislating transparency noting that “an attack on secrecy is not at the same time an attack on privacy…Transparency does not diminish financial security, it adds to it.”
Global Financial Integrity Director Raymond Baker will be speaking on Capitol Hill in a panel discussion on June 16 where the OECD will formally present this years’ African Economic Outlook.
Full event details below:
Wednesday, June 16, 2010
8:30 AM Registration, 9:00-10:30 AM Presentation
Rayburn House Office Building, Room 2255
While admission is free of charge, space is limited. Please register by Tuesday, June 15 2010.
The final communiqué released following the conclusion of the G20 Finance Ministers and Central Bank Governors’ meeting on June 5, 2010 in Busan, Republic of South Korea.
Search for Common Ground (SFCG) will be hosting a panel discussion on corruption and violence this Friday, June 11th. The event, which will take place at the Council on Foreign Relations, feature’s GFI friend Nuhu Ribado, among others.
Full details below:
Friday, June 11th
9:00 to 10:30am
Council on Foreign Relations
1777 F Street, NW
First Floor
Washington, DC
Corruption is a leading driver of conflict and the closest affiliated condition with instability and violence. Corruption incites conflict, fuels fighting, complicates peacebuilding, and obstructs nation-building. Yet anti-corruption and peacebuilding have historically been unaligned fields and the relationship between them has been distant at best, adversarial at worst. This forum, the first in a series to examine economics and conflict, will investigate the nexus between conflict and corruption. How and where can peacebuilders work with anti-corruption efforts? What are the benefits – and the barriers – to collaboration?
Director of Global Financial Integrity Raymond Baker addressed international tax cooperation as a panelist at the informal United Nations panel discussion held yesterday in New York. Mr. Baker participated in the event’s second panel on innovative development financing initiatives under development.
Philippe Douste-Blazy, Special Adviser to the Secretary-General on Innovative Financing for Development, chaired the day-long event and provided opening and closing remarks. The meeting allowed for informal and interactive discussion of all the issues related to accomplishing the Millennium Development Goals (MDGs) by 2015. The first panel focused specifically on mechanisms of innovative development financing in operation.
The G77 and China statement said that the group “believes that innovative mechanisms of financing can make a positive contribution in assisting developing countries to mobilize additional resources for financing for development on a stable, predictable and voluntary basis.” The European Union also made a statement identifying its current initiatives and goals.
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