The Sentry’s report points to major ways the international community must act to deny kleptocrats the “brain trust” on which they rely to perpetrate their crimes. It’s up to the U.S. to be a leader, not a laggard, in implementing a robust anti-money laundering regime.
As world leaders gather this week in New York for the United Nations General Assembly (UNGA), an epidemic of offshore wealth looms large over efforts to safeguard a turbulent post-pandemic world. Faced with myriad unpredictable crises, ranging from historic floods and droughts to widespread food scarcity and brewing recessionary fears, governments around the world are facing a need to raise revenues to stave off disasters and have a chance to meet the UN’s Sustainable Development Goals.
Without public country-by-country reporting, investors have little knowledge about the tax strategies of companies they own and the degree to which they may be engaging in risky tax behavior. The Securities and Exchange Commission must address the chasm between what companies know and what they disclose to investors.
The growing nexus of environmental crimes and illicit finance is demanding action, and environment, conservation and anti-corruption advocates alike are taking note. On June 28th and 29th, FACT hosted a virtual convening of over 60 civil society activists, experts, and policymakers to discuss this policy intersection, identify shared priorities, and discuss joint advocacy strategies.
To tackle global corruption, the U.S. must start by cleaning up its own house through the reforms discussed in this blog, as well as by working collaboratively with African nations, civil society actors, and professionals to properly stem the root causes and key loopholes that enable capital flight, illicit financial flows, and corrupt or criminal financial abuses.
Africa loses significantly more cash to capital flight than it obtains from development aid, external borrowing, or foreign direct investment. In a real sense, Africa is a “net creditor” to the rest of the world.