September 24, 2009
Monique Perry Danziger 202-293-0740

Washington, D.C.—As the Group of Twenty meets today in Pittsburgh, Global Financial Integrity (GFI) urges leaders to pursue measures to increase transparency in global finance and curtail illicit financial flows.

“Despite the fact that wealthy nations are experiencing a recovery from the global financial crisis experts are warning that the worst may still be ahead for developing nations,” said GFI director Raymond Baker. “The World Bank is predicting that 89 million additional people may be pushed into extreme poverty by the end of 2010 while the combined GDP of developing economies is projected by the United Nations to shrink by 4.1 percent. In the face of these dire forecasts having an effective plan for bolstering economic development in emerging economies is crucial.”

GFI recommends that discussions on development aid include examination of the link between the hundreds of billions in illicit financial flows coming out of developing countries each year, lack of progress achieving poverty alleviation and development goals, and the role played by facilitating secrecy jurisdictions.

September 24, 2009
Monique Perry Danziger 202-293-0740

New protocol signed Wednesday does little to enhance U.S. ability to pursue tax cheats with accounts in Switzerland

Washington, D.C. -  A protocol signed Wednesday by the United States and Switzerland amending the U.S.-Swiss Tax Treaty falls short of ensuring effective information-exchange between the U.S. and Swiss financial institutions, said Global Financial Integrity (GFI) Thursday.

"The protocol signed Wednesday is an improvement on the existing US-Swiss Income Tax Treaty," said GFI director Raymond Baker. "It establishes a stronger framework for and commitment to cooperation in mutual tax assistance matters, but there is still a ways to go before we have something in place that will enable the U.S. to effectively pursue tax evaders that hide assets in Switzerland."

September 17, 2009

Monique Perry Danziger,  202-904-3113

Washington, D.C. - Today the Task Force on Financial Integrity and Economic Development concluded a two-day conference which provided an opportunity to examine in-depth the linkage between global illicit financial flows and their adverse impact on development.

The massive flow of illicit money out of developing nations, estimated at some $1 trillion per year, outpaces current levels of foreign aid by a ratio of nearly 10 to 1.  Consisting of tax evasion, tax avoidance, and criminal and corrupt funds, this phenomenon is the most damaging economic condition hurting the global poor. 

Therefore, the Task Force calls on the G-20 nations to recognize publicly that the flow of illicit money out of poor countries, facilitated by the global shadow financial system, cripples the ability of these countries to work their way out of poverty. Recognizing this linkage is a vital first step in creating the conditions to eradicate poverty in developing countries. The second step is taking action to stop these flows.

 This, we believe, is a development imperative.

September 17, 2009

Monique Perry Danziger,  202-904-3113

Washington, D.C. - Day two of the Task Force on Financial Integrity and Economic Development’s 2009 Conference “Increasing Transparency in Global Finance: A Development Imperative,” began this morning with a panel on beneficial ownership. 

Speaking from District Attorney Robert Morgenthau’s office, Matthew Rosen talked about how U.S. incorporation standards lag behind many other countries in the world and that there is “overwhelming support” from U.S. law enforcement to update existing laws to include beneficial ownership disclosure.

September 16, 2009
Monique Perry Danziger,  202-904-3113

Washington, DC -"We have the means to end offshore tax abuse if we have the political will to act," was the message delivered by Carl Levin in his keynote speech for given before dinner guests at the Task Force on Financial Integrity and Economic Development's conference, Increasing Transparency in Global Finance: A Development Imperative.

The Senator's remarks included commentary on his extensive work as Chairman of the Senate Permanent Subcommittee on Investigations to increase transparency in offshore finance and combat illicit financial practices. He also warned against "popping the cork on the Champagne" too quickly in the wake of the UBS legal settlement and the recent adoption of OECD tax information exchange standards by many countries of late.

The Senator's address rounded-out Day one of the Task Force's two-day conference, which continues tomorrow at the Washington Hilton Embassy Row.