Learn About Illicit Financial Flows
Key Terms



EU Savings Tax Directive to be repealed?

Nicholas Shaxson

This article originally appeared on the blog of the Tax Justice Network, a Coordinating Committee member of the FTC.

The EU Savings Tax Directive (EUSTD) has been the EU’s flagship transparency initiative since its introduction in 2003, and we have written about it on many occasions. It complements another EU transparency scheme called the Directive on Administrative Co-operation, which was beefed up this week, as the Wall St. Journal reported:

“European Union finance ministers agreed Tuesday on a far-reaching crackdown on tax evasion that will bring the bloc’s standards on par with global rules by 2017, although Austria is getting an extra year to build up a data-exchange system with its banks.”

The DAC currently covers only EU Member states, while the EUSTD is extended by agreement to cover also a range of third countries in the EU’s orbit, including Switzerland and a bunch of British (and Dutch) tax havens. Both are systems of automatic information exchange (AIE), the new global financial transparency standard which TJN has been fighting for for years but only came into vogue in the past couple of years. The DAC was being beefed up to accommodate the new global Common Reporting Standards (CRS) led by the OECD. The CRS is another AIE system, which we have described as a vast improvement on a bad situation – but it still has various holes.

Continue Reading »


On the Eve of the Annual Conference

Christian Freymeyer


We’ve arrived at the eve of the our annual conference, co-hosted this year in Lima, Peru by FTC member Latin American Network on Debt, Development, and Rights (LATINDAD). While the main conference begins tomorrow, journalists, civil society leaders and researchers are already hard at work. The week began today with a journalist training that included presentations from renowned investigative journalists like Hernán CapielloÁngel Páez, and former Wall Street Journal reporter Glenn Simpson. The training brought together more than 15 journalists from 10 different countries in Latin America to discuss how investigative journalism can be a tool for uncovering illicit financial flows. Alongside the journalist training, members of civil society gathered to discuss illicit flows, corruption, and financial transparency.

As today’s sessions have come to a close, we’re looking forward to the launch of the conference tomorrow. You can view the full agenda for the event here. If you’re unable to join us in Lima, you don’t have to be left out. Follow along and add to the conversation on Twitter using the hashtag #FTC2014Lima and by following @FinTrCo.

Continue Reading »


Countdown to Lima Conference: Transforming the post-2015 momentum into an enduring fiscal justice movement

Financial Transparency Coalition

This blog is part of a series ahead of our annual conference, which takes place next week. Each piece is written by a conference speaker and aims to give a preview of some of the issues to be discussed. 

Written by Niko Lusiani, Director of the Human Rights in Economic Policy program at the Center for Economic and Social Rights (CESR)

Experts, advocates, government officials and journalists from all regions of the globe will be gathering next week in Lima, Peru to scale-up strategic efforts to curb illicit financial flows in ways which ensure sufficient, equitable and accountable financing of sustainable development.

The timing couldn’t be more auspicious. As governments move into the final stages of negotiating a set of new Sustainable Development Goals (SDGs) to replace the Millennium Development Goals after their expiration date next year, this post-2015 momentum represents a once-in-a-generation opportunity to shape the contours of national government priorities, policies and financing decisions in areas from education to ecology, housing to health, climate change to care work. Beyond national commitments, the post-2015 process is also an important strategic opportunity to secure global commitments on tax cooperation in a truly multilateral institution whose reason of being and higher-order imperative—unlike other bodies like the G20—is to promote human rights in development.

Continue Reading »


Publishing tax breaks and subsidies for corporations – a good idea whose time has come

Nicholas Shaxson

The indefatigable US-based organisation Good Jobs First has sent a fascinating email, which relates to the United States but could have general relevance for other countries. This one is located at the fascinating, busy intersection between tax and transparency.

Continue Reading »


Countdown to Lima Conference: Tackling some of the biggest problems in the Americas

Max Heywood

This blog is part of a series ahead of our annual conference, which takes place next week. Each piece is written by a conference speaker and aims to give a preview of some of the issues to be discussed. 

There is just a week to go before the start of the Hidden Money, Hidden Resources conference in Lima, organized by the Financial Transparency Coalition and Latindadd, and the agenda covers a number of topics which are highly relevant to the Americas.

The panel I´ve been invited to moderate, for example, will be exploring the links between citizen security, organized crime, corruption and money-laundering. Latin America and the Caribbean as a region has the highest levels of citizen insecurity in the world, and is the only region where criminal violence increased between 2000 and 2010 according to UNDP.

Continue Reading »


56 reasons why anonymous company ownership is the biggest problem you’ve never heard of

Rosie Sharpe

Anonymous company ownership doesn’t exactly trip off the tongue does it?  Nor is it a phrase that many people have heard of.  But it should be.  Anonymous company ownership is behind much of what is bad in the world.

It’s behind the fraudsters who cheat vulnerable people like the young, the old and the sick out of the resources they need to get by in life.  It’s behind the tax dodgers who don’t pay their fair share towards society.  It’s behind the dishonest public officials who use their positions for personal gain, and the corrupt multinationals that bribe their way into a lucrative contract.  It’s behind the people traffickers who condemn people to lives of modern-day slavery.  It’s even behind the terrorists, drug cartels and mobsters who run criminal enterprises.

Continue Reading »


PWC report endorses country by country reporting for banks

Nicholas Shaxson

9144964712_3a080060a2_zFrom Euractiv, a statement that would have been unthinkable even just a couple of years ago:

“Publishing turnover, staff numbers, taxes paid and subsidies received in every country banks operate in, could boost competitiveness, increase lending and bolster financial stability, the independent study by auditors PwC will find. It will fight tax evasion and not harm investment or result in excessive compliance costs for banks, the report will say once published.”

This research, carried out for the European Commission as due diligence for the fourth revision of the EU Capital Requirements Directive, is highly welcome, and it comes in the context of a statement by PwC’s chairman, summarised by the FT:

“The chairman of the world’s largest tax practice says tax advice has a moral dimension to it that professional services firms must keep in mind when advising clients.”

Continue Reading »


London Can’t Afford To Turn a Blind Eye To Corrupt Money

Transparency International

By: Scott Edwards, Communications Officer for Transparency International – United Kingdom


This piece is cross-posted from the blog of Transparency International

Boris Johnson’s call for new homes in London to be sold first to Londoners, “not to oligarchs”, made headlines this week.

The Mayor of London making this demand at the Conservative party conference in Birmingham highlights a growing acknowledgement that a vast number of properties in the city are being used as safe investments by the world’s mega-wealthy.  In fact, foreign buyers bought up to 75% of new homes in central London over the past year, and foreign buyers reportedly accounted for 49% of all properties above £1m. £7bn of foreign investment was spent on high-end London homes in 2013.

But what Johnson must consider when addressing the overheated top-end of London’s property market is the ease with which an overseas buyer can invest in a London property using stolen assets – the proceeds of corruption.

Continue Reading »


How Shell Corporations Undermine Schools in California

Ann Hollingshead

California spends about $8,500 per year to educate its public school students. That’s about $3,300 less than the national average. In fact, according to Education Week in a national ranking of states and D.C., California ranks near the bottom, at 49th, in terms of per-pupil spending. There are reasons to believe that one cause of this problem is the system of property taxation in California—and its loopholes.

The biggest player in property taxation and its policy in California is Proposition 13. Approved by California’s voters in 1978, Proposition 13 sets limits on the annual increases of assessed value of real property by an inflation factor. Proposition 13 also prohibits the government from reassessing a property’s new base year unless that property changes ownership. Broadly speaking, this means that in California, unless you sell your home, your property taxes cannot increase by more than a fixed percentage each year.

In fact, the market value of properties in California has significantly outpaced this fixed percentage, leading to a discrepancy between what Californians would have paid in property taxes without Proposition 13 and what they actually pay.

Continue Reading »


The “Big Mo” in the Drive to Address Illicit Financial Flows

Tom Cardamone

This post originally appeared on the blog of Global Financial Integrity, a Coordinating Committee member of the FTC. 

tomOn September 24th, tucked away in a quiet conference room in the basement of the UN General Assembly building, an extraordinary conversation took place on the future of global development.  But, despite the gathering of representatives from the OECD, UN, World Bank, USAID and the Mexican, Australian, and Nigerian governments, the event received exactly zero media coverage.

Titled “Curbing Illicit Financial Flows for Domestic Resource Mobilization and Sustainable Development in the Post-2015 Era,” the focal point of the two-hour discussion was how the international community could, as the program description put it, “identify concrete international actions needed” to curtail illicit financial flows out of developing country economies.  While other events were given more airtime and other issues may require more immediate attention, some ideas presented at the panel could be transformational in terms of how countries address the scourge of illicit flows and how the development agenda is funded.

Continue Reading »


Exposed: Illegal gold, trade mis-invoicing and tax fraud in South Africa

Naomi Fowler

Artisana_mine_interior_near_Lows_Creek_Mpumalanga_01A powerful 20 minute film just out from Carte Blanche, a major South African investigative news programme lifts the lid on the country’s illegal mining sector.

The film takes us on a journey where “poor, desperate people” brave gunmen to go underground to look for gold in atrocious conditions. We witness illegal gold trades by a headteacher on his own school grounds during school hours and hear from gold traders making 10 million rand a month (about $900,000).

The film shows us the “new randlords” and organised crime syndicates who rake in billions buying black market gold. But the value of this gold is only part of the story. The real money-spinner from this activity is a massive tax fraud.

Continue Reading »

Press Releases

Report reveals threat to U.S. interests from anonymous shell company owners

Global Witness

The Great Rip Off” shows range of crimes hidden by companies set up in U.S. 

Owners of anonymous companies registered in U.S. states are ripping off innocent people and businesses across America, says a new report by Global Witness. Drawing on 22 cases involving anonymous companies from 27 states, The Great Rip Off shows how fraudsters, mobsters, money-launderers, tax-evaders and corrupt politicians are able to use anonymously-owned American companies to cover their tracks and evade the authorities.

“We looked at all sorts of crimes across the U.S. and found two things in common. They were all carried out by anonymous owners of American companies, and the authorities are spending lots of time and money trying to stop them. These untraceable companies are the getaway cars for criminals – and it’s time to take away the keys,” said Charmian Gooch, Global Witness Director.

Continue Reading »

Pg 1 of 181 1234...1020...Last
Latest Press Releases

Report reveals threat to U.S. interests from anonymous shell company owners

Global Witness · September 25, 2014

Owners of anonymous companies registered in U.S. states are ripping off innocent people and businesses across America, says a new report by ...

G20 Introduces “Transparency” Behind Closed Doors

Financial Transparency Coalition · September 21, 2014

WASHINGTON, D.C.—The G20’s recent focus on financial transparency is a welcome development, but instituting bare minimum requirements, or plans that allow for ...

Press Release: No Role for Public Scrutiny in OECD Plan to Curb Corporate Tax Dodging

Financial Transparency Coalition · September 16, 2014

WASHINGTON, D.C. — The Organization for Economic Cooperation and Development’s (OECD) new recommendations to fight multinational corporate tax avoidance look robust from ...