Clark Gascoigne, the interim executive director of the FACT Coalition, spoke at the U.S. launch of the 2020 Financial Secrecy Index on February 19, 2020.
Wednesday, February 19, 2020
Join Tax Justice Network and the FACT Coalition for a discussion of the 2020 Financial Secrecy Index, the ranking of the U.S., and the status of relevant U.S. legislation.
Sometimes, ranking near No. 1 in the world is not a badge of pride. According to the Financial Secrecy Index released by the Tax Justice Network (TJN), the United States is the second largest contributor to financial secrecy in the world, placing it in the company of infamous tax havens such as Switzerland (ranked No. 1) and the Cayman Islands (ranked No. 3). Financial secrecy is enabling people to hide income from the authorities to evade taxes or financial regulation, launder profits from crime, finance terrorism, or otherwise break the law.
As the new TJN report explains, the United States contributes more to financial secrecy in the world than any country other than Switzerland for two reasons. First, this country has the largest share (22.3 percent) of the global market for offshore financial services. Second, several U.S. states promote financial secrecy by allowing individuals to form corporations without providing any real identifying information. In some states, people who want a library card must provide more identifying information than those who want to incorporate. The result is a huge amount of money held in shell companies in the United States that cannot be traced to any individual anywhere in the world.
Switzerland, the United States, and the Cayman Islands are the world’s biggest contributors to financial secrecy, according to the latest edition of the Tax Justice Network’s Financial Secrecy Index.
America Surpasses Cayman Islands, Second Only to Switzerland in Tax Justice Network’s Rankings of the World’s Largest Secrecy Jurisdictions
WASHINGTON, D.C. – The United States has become the second largest tax haven in the world, according to a new report published Tuesday by the Tax Justice Network.
January 30, 2018
Join the FACT Coalition in Washington on January 30th at 12pm EST for the 2018 launch of the Financial Secrecy Index and find out where the U.S. ranks among the world’s biggest tax havens.