The Tax Justice Network on Tuesday accused the US, UK, Germany, Italy and Japan of torpedoing global progress on financial transparency. The US is even the frontrunner among countries that help rich people hide their wealth.
The activists criticized that this would help Russian oligarchs, but also tax evaders, corrupt politicians and organized crime to launder money.
The Tax Justice Network cited an EU estimate that $10 trillion is being evaded from the rule of law by wealthy individuals through secret deals abroad. This corresponds to 2.5 times the value of all dollar and euro bills and coins that are in circulation worldwide today.
To create their ranking, the group evaluated how easy it is to hide money from other countries under the legal situation in different states. They then multiplied the index value by the range of financial services that each country provides for foreigners.
According to this, the global situation has improved slightly compared to the previous year – this is mainly due to smaller countries, which are increasingly demanding disclosure of the true owners of assets.
In contrast, the USA, Great Britain, Germany, Japan and Italy made no progress. The USA even deteriorated significantly and are far ahead of Switzerland.
Certain US states are known for facilitating the creation of anonymous shell companies and foundations through low taxes and few controls. However, during the election campaign, US President Joe Biden took up the cause of greater transparency in the financial world.