For Immediate Release
White House Acts on Corruption and Tax Evasion in Wake of Panama Papers
WASHINGTON - The Obama Administration announced actions to combat money laundering, corruption and tax evasion. In April, the "Panama Papers" leak exposed how "anonymous shell corporations" facilitate crime and corruption.
"It's crucial to global development that we stop corruption and tax evasion," noted Eric LeCompte, executive director of the religious development coalition Jubilee USA Network. "Developing countries lose a trillion dollars a year to corruption, crime and tax evasion."
According to a 2012 academic study from Griffith University, the United States is the second-easiest country in the world to set up an anonymous shell company. These types of companies are accused of being vehicles that can facilitate crime and tax evasion. Representatives Carolyn Maloney (D-NY) and Peter King (R-NY) and Senator Sheldon Whitehouse (D-RI) introduced legislation February 3 to address the issue. After the "Panama Papers" leak, which cited more than 200,000 shell companies in its revelations, the number of co-sponsors of the House bill nearly doubled. In announcing its own legislation, the White House noted that anonymous shell company formation in the United States "can only be resolved through Congressional action."
Some US-based anonymous shell companies enabled a range of crimes, including human trafficking, weapons sales, medicare fraud, terrorism financing and evading sanctions. The current bill, "the Incorporation Transparency and Law Enforcement Assistance Act," HR 4450 and S 2489, is endorsed by a number of law enforcement organizations and a broad range of faith, development and human rights organizations.
"While we are grateful for White House action, we need to see what impacts their actions will have," stated LeCompte. "I'm hopeful that we can reach bipartisan consensus to end the illegitimate use of anonymous shell companies."
Read more about the Panama Papers and anonymous shell companies
Read more about the Incorporation Transparency and Law Enforcement Assistance Act
Read a sampling of letters from law enforcement organizations on HR 4450 and S 2489: the Federal Law Enforcement Officers Assocation and the Fraternal Order of Police.
This is the world we live in. This is the world we cover.
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Won't Exist.