Despite Acknowledging Dangers of Phantom Firms, Obama Administration & G8 Fail to Endorse Public Corporate Ownership Registries

G8 Leaders Allow Multinationals to Continue Aggressive Tax Avoidance in the Dark

World Leaders Endorse Global Automatic Exchange of Tax Information, Transparency in Extractive Industries at Lough Erne Summit

June 18, 2013
Clark Gascoigne, +1 202 293 0740 x222
EJ Fagan, +1 202 293 0740 x227

WASHINGTON, DC – Global Financial Integrity (GFI) welcomed the statements from G8 leaders today reiterating the significant progress that has been made to crack down on international tax evasion and supporting a global standard of automatic tax information exchange, but the research and advocacy organization expressed disappointment in the White House and world leaders for failing to fully address the need for transparency in multinational companies’ basic financial reporting and in corporate ownership.

“Today’s declaration really solidifies the progress made to-date on battling international tax evasion and extends it to countries not actively pursuing such initiatives like Japan and Russia,” said Heather Lowe, GFI’s Legal Counsel and Director of Government Affairs.  “However, President Obama and world leaders generally failed to grasp the need for public transparency in corporate tax reporting and corporate ownership information.”

U.S. President Urged to Join David Cameron’s Call for Public Registries of Beneficial Ownership Information at G8 Summit Next Week

Multilateral Automatic Exchange of Tax Information Should Be Global Norm, Expanded to Developing Countries

Country-by-Country Reporting by Multinational Companies Essential to Deter & Expose Abusive Tax Dodging

June 14, 2013
Clark Gascoigne, +1 202 293 0740 x222

WASHINGTON, DC – As G8 leaders prepare to meet Monday and Tuesday in Northern Ireland, Global Financial Integrity (GFI) called on U.S. President Barack Obama to take aggressive action to curtail illicit financial flows and support public disclosure of corporate ownership information as essential to reducing crime, corruption, tax evasion, and terrorist financing.  Under the leadership of British Prime Minister David Cameron, the G8 Summit is expected to focus on curbing abusive tax dodging and corruption.

“President Obama has the opportunity to serve as the lynchpin of a global deal cracking down on the most damaging problem in the international financial system,” said Raymond Baker, President of GFI and a longtime authority on financial crime. “Illicit financial flows drain roughly $1 trillion per year from developing countries.  Tax haven secrecy and anonymous shell companies facilitated the illegal outflow of roughly $261 billion from the Greek economy in the lead-up to the European debt crisis, and tax haven abuse is estimated to cost U.S. taxpayers roughly $150 billion per year.  Illicit financial flows facilitated by tax haven secrecy and anonymous shell companies are a global epidemic undermining rich and poor nations alike.”

European Parliament Passes Landmark Transparency Provisions for Oil, Gas, Mining, and Logging Companies

Canadian PM Harper Announces Intent to Adopt Similar Policies for Canadian Firms

G8 Urged to Make Disclosure Global Norm at Next Week’s Summit; Expand Country-by-Country Reporting to Firms in All Sectors

June 12, 2013
Clark Gascoigne, +1 202 293 0740 x222

WASHINGTON, DC – Global Financial Integrity (GFI) lauded the European Parliament today for adopting new transparency rules for all EU listed extractive industries companies as well as all large, privately held extractive industries companies incorporated in the EU.  Announced informally by European leaders in April, the rules were officially adopted by the Parliament Wednesday in what GFI referred to as a major victory for anti-corruption proponents.  Also on Wednesday, the Canadian government announced that it intended to move forward to enact similar rules, a move lauded by GFI, a Washington, DC-based research and advocacy organization.

"The new transparency rules in Europe and the announcement from the Canadian Prime Minister are two key advancements for anyone who cares about fighting poverty, protecting investors, making markets more efficient, or reducing corruption,” remarked GFI Director Raymond Baker. "Our research shows that the developing world loses roughly US$1 trillion per year to crime, corruption, and tax evasion. This is a systemic problem caused largely by the opaque, secretive global financial system. For citizens of resource-rich countries, the new EU rules—as well as the potential Canadian rules—will shine a light in places that need it most."