MP Warns of Financial Corruption in UK Escaping ‘Toothless’ Enforcers

THE GUARDIAN: Economic crime needs to ‘be taken seriously’ alongside tougher anti-money laundering levy, says Hodge

The Pandora Papers leak shows that the UK is in danger of becoming a corrupt country because it is failing to take economic crime seriously enough, the former chair of the public accounts watchdog told MPs, as she called for more funding for financial crime enforcers.

Dame Margaret Hodge, a senior Labour MP, raised the issue in the Commons as part of a debate on the finance bill, highlighting the central role of London in facilitating economic crime.

She said the Pandora Papers, leaked to the International Consortium of Investigative Journalists (ICIJ) and shared with media around the world including the Guardian, comprised “the largest cache of documents we have ever received” in relation to tax havens.

“The UK lies at the heart of everything revealed there,” she said. “Others have talked about secret property transactions that took place – £4bn identified in the Pandora Papers. There are more UK citizens cited in that tranche of leaks than from any other country. The relationship between the UK and our tax havens is central to the facilitation of economic crime, and again we see the weak and toothless enforcement agencies.” » | Rowena Mason, Deputy political editor | Thursday, December 2, 2021

The Guardian View on Tax Havens: Bring Them to Heel

THE GUARDIAN – EDITORIAL: The Pandora papers prove that secrecy jurisdictions and their super-rich clients are still running rings around the rest of us

‘The chancellor, Rishi Sunak, was wrong to say that the prominent role of the City of London in this system is not a “source of shame”.’ Photograph: Getty
Five years after the Panama papers exposed the vast scale of offshore banking and business services via the activities of the wealth management specialist Mossack Fonseca, hundreds of billions of pounds are still being secreted away in tax havens. The leak of almost 12m documents, known as the Pandora papers, reveals that 35 current or former heads of state are among the customers of secrecy jurisdictions where huge sums of money are hidden in order to avoid tax and transparency. King Abdullah II of Jordan, Czech prime minister Andrej Babiš and Azerbaijan’s ruling Aliyev family are among those with serious questions to answer, along with more than 100 billionaires and rich individuals from all over the world.

Beyond any specific acts of venality, as outrageous as these are, looms a system whose existence is a global disgrace. As a matter of course, and in spite of their immense personal advantages, the ultra-rich are ripping off everyone else. They do this by refusing to pay their share towards the services and resources (health, education, energy, water and governance) on which everyone depends. And they are facilitated and encouraged in this by an industry whose purpose is to shield their wealth and conceal what they are up to. » | Editorial | Monday, October 4, 2021

Pandora Papers: A Money Bomb With Political Ripples: Revelations from nearly 12 million leaked confidential financial records have thrown light on the concealed wealth of powerful public figures around the world. How do they hide their money, and why is this information important? »

'Web of Financial Secrecy': UK Wins Title of Biggest Tax Haven for Rich

Great Britain has won the none-too-flattering title of King - of the world's tax havens. A new report says the UK's overseas territories make up much of the world's secret, offshore banking industry. And aside from making promises, London hasn't done much about it.

Screwed by Corporate America

G20 Summit: Global Financial Crackdown Is Cost of Solving Crisis
THE TELEGRAPH: • New Financial Stability Board as global overseer • Tax havens and hedge funds to be punished • Heavy scrutiny for banks

Gordon Brown and his fellow world leaders have pledged the biggest crackdown on tax havens, hedge funds and banks in modern history as the price to be paid for the multi-trillion dollar bail-out of the world economy.

"The era of banking secrecy is over", the Prime Minister declared, as the Group of 20 leading nations agreed to impose a new range of regulations on banks and non-bank financial institutions as a punishment for contributing to the crisis.

Harsh fines and sanctions will be levied on tax havens that refuse to publish details of their accounts; hedge funds will have to provide more detailed accounts in the future; and bankers will have their bonuses more heavily controlled and taxed throughout the world, the communique pledged.

The range of new regulations will be implemented by national governments in the coming months, officials said, after the G20 agreed on more significant and far-reaching reforms than had been expected.

In what will be interpreted as a victory for the French and German factions, which had emphasised the importance of regulation over new fiscal giveaways, the G20 also ordered the creation of a new Financial Stability Board dedicated to monitoring leverage and inter-connectedness of international financial institutions. >>> By Edmund Conway Economics Editor | Friday, April 3, 2009

THE TELEGRAPH: G20 Summit: Blacklisted Tax Havens Face Sanctions

Tax havens that refuse to sign anti-secrecy agreements face expensive sanctions under an unprecedented global effort to catch illegal tax evaders.

Liechtenstein is among 45 territories blacklisted by the OECD and threatened with punitive financial retaliation for banking secrecy. Photo courtesy of The Telegraph
Switzerland, Singapore, the Cayman Islands, Monaco, Luxembourg and Hong Kong are among 45 territories blacklisted on Thursday by the Organisation for Economic Co-operation and Development and now threatened with punitive financial retaliation for their banking secrecy.

Among the sanctions being considered by the G20 are the scrapping of tax treaty arrangements, imposing additional taxes on companies that operate in non-compliant countries, and tougher disclosure requirements for individuals and businesses that use shelters.

Of the offending jurisdictions, 40 "have committed to the internationally agreed tax standard" but have yet to implement it. Only Costa Rica, Malaysia, Philippines and Uruguay have refused to sign up altogether. Jersey, Guernsey and the Isle of Man are fully compliant already.

Illegal tax evasion through offshore shelters has been a long-standing irritation for Gordon Brown, President Barack Obama and French President Nicolas Sarkozy. An estimated $7 trillion of assets are held offshore and, according to pressure group Tax Justice Network, developed countries lose $180bn a year in evaded taxes. >>> By Philip Aldrick, Banking Editor | Friday, April 3, 2009