Connect with us

Headlines

US Ranked World’s Most Secretive Financial Jurisdiction for Illegal Money

Published

on

By Derrick Bangura

The United States of America (US) has emerged the most secretive financial jurisdiction to hide illegal money in the world, according to the 2022 Financial Secrecy Index (FSI), a comprehensive study from the Tax Justice Network.

Other countries in the top five included Switzerland, Singapore, Hong Kong and Luxembourg, according to FACT Coalition’s FSI report.
The US ranking is deteriorating from prior Financial Secrecy Indices, in part due to unaddressed loopholes and lax rules in the country’s anti-money laundering and tax laws, it stated.
Its emergence as the world’s top destination of illegal money came on the heels of the recent declaration by the global financial watchdog, the Financial Action Task Force (FATF) that it would assess its member countries more frequently to assist them further in tackling money-laundering and combating terrorism financing.

Advertisement

The US emerged top on the list even as it continued to implement sanctions on Russia and some of its wealthiest elite following Russia’s invasion of Ukraine.
While it is collaborating with governments around the world to locate and freeze Russian oligarch assets, this task is made more difficult by existing systems of financial secrecy that allow people, including kleptocrats and criminals, to hide their financial assets from authorities and investigators.

It is not clear how much money is illegally hidden in the US, although the Treasury Department had estimated around two per cent of the nation’s gross domestic product (GDP)- about $480 billion was hidden, according to CBS News.

The process of setting up a shell corporation, a corporation without active business operations or significant assets in the US is an easier process than getting a library card due to applicants not needing to verify their identity, a terrorist-financing expert at Washington think tank Global Financial Integrity, Lakshmi Kumar said.

Advertisement

The US was identified as the second most secretive country for hiding money in 2020. Later in the year, Congress passed the Corporate Transparency Act, requiring corporations and companies to report who owns the corporations and companies to a central directory maintained by the Financial Crimes Enforcement Network at the Treasury Department.

Commenting on the new FSI report, the Executive Director of the FACT Coalition, Ian Gary said: “At a time when the world is being confronted by the very real and tragic consequences of enabling global corruption, these findings point the finger at U.S. secrecy and should be a rallying cry for financial transparency.

“The Biden administration has already committed to making a number of necessary anti-corruption reforms to make sanctions more effective and to close the U.S. financial system to corrupt and criminal actors whose actions are destabilising global markets and democratic institutions.

Advertisement

“This ranking underscores that while the U.S. is joining with global governments to locate and freeze Russian oligarch assets, kleptocrats and criminals are still able to hide and grow their financial assets with relative ease in the U.S.

“Enforcing sanctions is difficult when we don’t have the tools necessary to know how and where oligarchs are invested in the United States.”
“The U.S. simply cannot afford to slide backwards in the fight for financial transparency.

“To fight corruption, we need to implement the Corporate Transparency Act, and to implement the Corporate Transparency Act, we need to fully fund FinCEN now,”said Congresswoman, Carolyn B. Maloney, the co-author of the CTA.

Advertisement

Financial secrecy undermines national security, democracy and the rule of law globally, while enabling tax avoidance and evasion which robs governments of resources they need to fight inequality and address the climate crisis.

The 2022 FSI highlights other reforms necessary to assist with sanctions enforcement and to reduce the US role as a haven to hide and grow ill-gotten or other illicit financial gains. These include, among others: “Bringing greater transparency to the $50 trillion US real estate market; engaging in more reciprocal automatic information exchange of financial account information for tax purposes and sharing the very information that the US has required from foreign financial institutions since 2014; introducing consistent anti-money laundering due diligence and reporting requirements to the $11 trillion dollar U.S. private investment fund industry,” among others.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

Noble Ladies Champion Women’s Financial Independence at Grand Inauguration in Abuja

Published

on

Women from diverse backgrounds across Nigeria and beyond gathered at the Art and Culture Auditorium, Abuja, for the inauguration and convention of the Noble Ladies Association. The event, led by the association’s Founder and “visionary and polished Queen Mother,” Mrs. Margaret Chigozie Mkpuma, was a colourful display of feminine elegance, empowerment, and ambition.

The highly anticipated gathering, attended by over 700 members and counting, reflected the association’s mission to help women realise their potential while shifting mindsets away from dependency and over-glamorization of the ‘white collar job.’ According to the group, progress can be better achieved through innovation and creativity. “When a woman is able to earn and blossom on her own she has no reason to look at herself as a second fiddle,” the association stated.

One of the association’s standout initiatives is its women-only investment platform, which currently offers a minimum entry of ₦100,000 with a return of ₦130,000 over 30 days—an interest rate of 30 percent. Some members invest as much as ₦1 million, enjoying the same return rate. Mrs. Mkpuma explained that the scheme focuses on women because “women bear the greater brunt of poverty” and the platform seeks “to offer equity in the absence of economic equality.”

Advertisement

Education is also central to the Noble Ladies’ mission, regardless of age. Their mantra, “start again from where you stopped,” encourages women to return to school or upgrade their skills at any stage in life. The association believes that financial stability is vital in protecting women from cultural practices that dispossess widows of their late husbands’ assets, while also enabling them to raise morally and socially grounded families.

Founded on the vision of enhancing women’s skills and achieving financial stability, the association rests on a value system that discourages pity and promotes purpose. “You have a purpose and you build on that purpose to achieve great potentials and emancipation,” Mrs. Mkpuma said.

A criminologist by training and entrepreneur by practice, she cautions against idleness while waiting for formal employment. “There are billions in the informal and non-formal sectors waiting to be made,” she said, rejecting the “new normal of begging” and urging people to “be more introspective to find their purpose in life and hold on to it.”

Advertisement

Mrs. Mkpuma’s management style keeps members actively engaged, focusing on vocational skills and training to prepare them for competitive markets. She is exploring “innovative integration of uncommon technologies” and is already in talks with international franchises to invest in Nigeria, with Noble Ladies as first beneficiaries.

The association’s core values include mutual respect, innovation, forward-thinking, equal opportunity, and financial emancipation. With plans underway to establish a secretariat in the heart of Abuja, the group aims to expand its impact.

The event drew high-profile guests, including former Inspector General of Police, Mike Okiro, and a host of VIPs, marking a significant milestone in the association’s drive for women’s empowerment.

Advertisement
Continue Reading

Headlines

NEPZA, FCT agree to create world-class FTZ environment

Published

on

NEPZA, FCT agree to create world-class FTZ environment

The Nigeria Export Processing Zones Authority (NEPZA) has stepped in to resolve the dispute between the Federal Capital Territory Administration and the Abuja Technology Village (ATV), a licensed Free Trade Zone, over the potential revocation of the zone’s land title.
Dr. Olufemi Ogunyemi, the Managing Director of NEPZA, urged ATV operators and investors to withdraw the lawsuit filed against the FCT administration immediately to facilitate a roundtable negotiation.
Dr. Ogunyemi delivered the charge during a courtesy visit to the Minister of the Federal Capital Territory, Barrister Nyesom Wike, on Thursday in Abuja.
You will recall that the ATV operators responded to the revocation notice issued by the FCT administration with a lawsuit.
Dr. Ogunyemi stated that the continued support for the growth of the Free Trade Zones Scheme would benefit the nation’s economy and the FCT’s development, emphasizing that the FCT administration recognized the scheme’s potential to accelerate industrialisation.
Dr. Ogunyemi, also the Chief Executive Officer of NEPZA, expressed his delight at the steps taken by the FCT minister to expand the economic frontier of the FCT through the proposed Abuja City Walk (ACW) project.
Dr. Ogunyemi further explained that the Authority was preparing to assess all the 63 licensed Free Trade Zones across the country with the view to vetting their functionality and contributions to the nation’s Foreign Direct Investment and export drives.
“I have come to discuss with His Excellency, the Minister of the Federal Capital Territory on the importance of supporting the ATV to succeed while also promoting the development of the Abuja City Walk project. We must work together to achieve this for the good of our nation,” he said.
On his part, the FCT Minister reiterated his unflinching determination to work towards President Bola Ahmed Tinubu’s Renewed Hope Agenda by bringing FDI to the FCT.
“We must fulfil Mr. President’s promises regarding industrialization, trade, and investment. In this context, the FCT will collaborate with NEPZA to review the future of ATV, a zone that was sponsored and supported by the FCT administration,” Wike said.
Barrister Wike also said that efforts were underway to fast-track the industrialisation process of the territory with the construction of the Abuja City Walk.
The minister further said the Abuja City Walk project was planned to cover over 200 hectares in the Abuja Technology Village corridor along Airport Road.
According to him, the business ecosystem aimed to create a lively, mixed-use urban center with residential, commercial, retail, hospitality, medical, and institutional facilities.
He added that the ACW would turn out to be a high-definition and world-class project that would give this administration’s Renewed Hope Agenda true meaning in the North-Central Region of the country.
Barrister Wike also indicated his continued pursuit of land and property owners who failed to fulfil their obligations to the FCT in his determination to develop the territory.

Continue Reading

Headlines

Benue IDPs block highway, demand return to ancestral homes

Published

on

Vehicular movement along the Yelwata axis of the Benue–Nasarawa highway was brought to a standstill on Wednesday as Internally Displaced Persons, IDPs, staged a protest, demanding immediate return to their ancestral homes.

The protesters, believed to be victims of persistent attacks by suspected herdsmen, blocked both lanes of the busy highway for several hours, chanting “We want to go back home”.

The protest caused disruption, leaving hundreds of motorists and passengers stranded.

Advertisement

Eyewitnesses said the displaced persons, many of whom have spent years in overcrowded IDP camps, are expressing deep frustration over the government’s delay in restoring security to their communities.

“We have suffered enough. We want to return to our homes and farms,” one of the protesters told reporters at the scene.

Security personnel were reportedly deployed to monitor the situation and prevent any escalation, though tensions remained high as of press time.

Advertisement

Efforts to reach the Benue State Emergency Management Agency, SEMA, and other relevant authorities for comment were unsuccessful.

Continue Reading

You May Like

Copyright © 2025 Acces News Magazine - All Right Reserved.

Verified by MonsterInsights