June, 09 2022, 11:04am EDT
For Immediate Release
Contact:
Clark Gascoigne
Phone: (202) 813-0290
Summit Anti-Corruption Commitments Must Include U.S. Domestic Anti-Money Laundering Reforms
Meaningful U.S. Reforms Are Key to Countering Illicit Financial Flows in the Americas
WASHINGTON
The Financial Accountability and Corporate Transparency (FACT) Coalition today reiterated the need for substantive U.S. leadership on key anti-corruption and financial transparency reforms after the opening speech by President Biden last night. Among the Summit's themes is the reaffirmation of still unfulfilled anti-corruption commitments from the previous Summit of the Americas in Lima, Peru.
"To fight global corruption, the Biden Administration must back up rhetorical leadership with needed U.S. reforms on an expedited timetable," said Ian Gary, Executive Director of the FACT Coalition. "The Corporate Transparency Act and other needed reforms present an opportunity to tackle U.S. financial secrecy and the worldwide corruption it enables, and the clock is ticking."
The Corporate Transparency Act (CTA) will effectively end the abuse of most anonymous U.S. shell companies by requiring entities to name their true, "beneficial" owner to a secure directory housed at the Financial Crimes Enforcement Network (FinCEN). Nevertheless, FinCEN, the agency tasked with implementing the law, has yet to publish a draft rule that outlines the protocols by which authorized users - including trusted foreign law enforcement partners - will have access to the directory. FACT has argued that a final rule should facilitate uncomplicated and fulsome access, as well as information sharing for both criminal and civil cases, including by foreign government partners in the Western Hemisphere. Access to the directory will be critical for U.S. partners to fight corruption and illicit financial flows in their own jurisdictions.
"The United States has a responsibility to take action because of its outsized role in facilitating money laundering in the Western Hemisphere," said Lakshmi Kumar, Policy Director at Global Financial Integrity.
Tackling illicit flows through U.S. markets that enable global corruption and criminal activity also requires bringing greater light to the $50 trillion U.S. real estate sector. "54 percent of all money laundered through U.S. real estate comes from Latin America. We need to see a permanent and nationwide regime to combat this issue and end the ability of corrupt and criminal actors from Latin America to use U.S. real estate to launder and hide their ill-gotten wealth," said Kumar.
This February, FACT submitted comments to FinCEN commending action to overcome a twenty-year "temporary" exemption on anti-money laundering reporting and bring the U.S. real estate sector under the purview of federal anti-money laundering safeguards. FACT's comment included guidance on how to craft an effective, permanent, and nationwide set of standards to combat illicit finance in real estate.
"This Summit should deliver strong shared commitments across the region to tackle corruption and illicit financial flows, which weaken economies and undermine democracy throughout the region," said Gary. "Outcomes from the Summit should include specific recommendations for beneficial ownership and steps to address real estate money laundering risks."
The threats posed by these unaddressed concerns are not limited to foreign countries; they also risk jeopardizing the stability of U.S. housing markets.
"By leaving itself vulnerable to foreign money laundering, the United States does more than obstruct the global anti-corruption agenda," said Jyotswaroop Bawa, Chief of Organizing and Campaigns at the California Reinvestment Coalition, a member of the FACT Coalition. "It has a direct cost on our communities right here in the States. Waves of dirty money push housing costs up across the board, squeezing the budgets of our local residents."
The Financial Accountability and Corporate Transparency (FACT) Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.
(202) 827-6401LATEST NEWS
Nancy Pelosi 'Making Calls' to Undermine AOC's Bid for Top Oversight Role
"It is so infantilizing to the House leadership to have a B team of octagenarians scheming behind their backs and aiming directly at their most promising young talent," said one progressive journalist.
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Progressives on Thursday were frustrated by reports that former House Speaker Nancy Pelosi is using her considerable influence on Capitol Hill to undermine Rep. Alexandria Ocasio-Cortez's bid to become the top Democrat on the powerful committee that could launch investigations into the Trump White House in the coming years.
As Common Dreamsreported last week, Pelosi (D-Calif.) has publicly indicated that she is supporting Rep. Gerry Connolly (D-Va.) to succeed Rep. Jamie Raskin (D-Md.) as ranking member on the House Committee on Oversight and Accountability when the 119th Congress begins in January.
But Punchbowl Newsreported that Pelosi—well-known for her relentless and often successful efforts to whip votes within the Democratic caucus—is also "making calls" to other Democratic lawmakers on behalf of Connolly.
The outlet reported that the former House speaker is "actively working to tank" the candidacy of Ocasio-Cortez (D-N.Y.), with whom she has had a rocky relationship at times as the progressive Democrat has pushed the party to embrace far-reaching reforms on climate, immigration, and other issues.
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The centrist New Democrat Coalition endorsed Connolly on Friday, while a House Democrat told Axios that Ocasio-Cortez "has pretty much the entire [Oversight] Committee with her."
The Congressional Progressive Caucus announced its endorsement of Ocasio-Cortez on Friday, with Chair Pramila Jayapal (D-Wash.) and Chair-elect Greg Casar (D-Texas) arguing the congresswoman's "fearless advocacy leading the Oversight Committee will help ensure Democrats retake the House in 2026."
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As Axios reported, several older longtime members are facing challenges for leadership roles from the party's younger generation. Ocasio-Cortez, 35, was the youngest woman ever elected to Congress when she won her election in 2018, and is an outspoken member of the progressive "Squad" which advocates for policies such as Medicare for All and has reportedly angered Pelosi in the past with its embrace of calls to "abolish" Immigration and Customs Enforcement (ICE).
"Many members are concerned about [the] precedent these races are setting," a senior House Democrat told Axios regarding the progressive contests with members like Connolly, who is 74.
Ryan Grim of Drop Site News said Pelosi's lobbying against Ocasio-Cortez "reeks of pettiness."
David Dayen, executive editor of The American Prospect, said the new reporting shows Pelosi attempting to act as a "puppet master."
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Ocasio-Cortez wrote to colleagues last week to announce her bid for the ranking member position, highlighting her involvement in derailing Republican efforts to "weaponize the committee's investigatory power for partisan purposes" and pledging to balance the Oversight Committee's focus on President-elect Donald Trump's actions with fighting to better the lives of working Americans.
If Democrats win back control of the House in 2026, the committee would be empowered to launch investigations into the incoming Trump administration and would have subpoena power.
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"Our analysis suggests that mirror bacteria could broadly evade many immune defenses of humans, animals, and plants," according to a group of 38 scientists, including multiple Nobel Prize winners.
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Dozens of scientists are calling in no uncertain terms for a halt on research to create "mirror life," particularly "mirror bacteria" that could "pose ecological risks" and possibly cause "pervasive lethal infections in a substantial fraction of the plant and animal species, including humans."
The group of 38 scientists, who include Nobel laureates and other experts, addressed research into "mirror life"—mirror-image biological molecules—in a piece of commentary published in the journal Science published Friday, which accompanied a technical report that was released earlier in December.
One of the scientists, synthetic biologist Kate Adamala at the University of Minnesota, was working on creating a mirror cell but "changed track last year" after studying the risks, according to the Guardian.
"We should not be making mirror life," she told the outlet. "We have time for the conversation. And that's what we were trying to do with this paper, to start a global conversation."
To that end, the authors of the commentary plan to convene discussions on the risks of mirror life and related topics in 2025, with the hope that "society at large will take a responsible approach to managing a technology that might pose unprecedented risks."
The ability to create mirror life is likely over a decade away and would require sizable investment and technical progress, meaning the world has the opportunity to "preempt risks before they are realized," according to the scientists.
When broken down into simple terms, mirror life sounds like something out of science fiction. All the biomolecules that constitute life have a "handedness" to them—"right-handed" nucleotides make up DNA and RNA, and proteins are formed from "left-handed" amino acids.
"So when we're talking about mirror-image life, it's kind of like a 'what if' experiment: What if we constructed life with right-handed proteins instead of left-handed proteins? Something that would be very, very similar to natural life, but doesn't exist in nature. We call this mirror-image life or mirror life," explained to Michael Kay, a professor of biochemistry at University of Utah's medical school.
Some scientists like Kay are interested in the medical possibilities of mirror-image therapeutics—which Kay says holds potential for treating chronic illness in a more cost-effective way—but both he and the authors of the recently published commentary are concerned about the potential threats posed by mirror bacteria.
"Our analysis suggests that mirror bacteria could broadly evade many immune defenses of humans, animals, and plants. Chiral interactions, which are central to immune recognition and activation in multicellular organisms, would be impaired with mirror bacteria," according to the scientists.
Essentially, as Kay puts it, it’s unlikely that mirror bacteria would be subject to the same constraints as regular bacteria, such as the human immune system or antibiotics.
The scientists warn that further developing this research could open a Pandora's box: "Unless compelling evidence emerges that mirror life would not pose extraordinary dangers, we believe that mirror bacteria and other mirror organisms, even those with engineered biocontainment measures, should not be created."
The authors argue that scientific research with the goal of creating mirror bacteria should not be allowed, and that potential funders should not support work related to mirror bacteria.
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One critic said UnitedHealth Group chief executive Andrew Witty should "resign and then dedicate every dollar he has to dismantling the current system brick by brick and building one based on public health in its stead."
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UnitedHealth Group CEO Andrew Witty wrote in a New York Times op-ed Friday that the for-profit U.S. healthcare system "does not work as well as it should" and that "no one would design a system like the one we have," admissions that came as his industry faced a torrent of public anger following the murder of UnitedHealthcare's chief executive.
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"It is (barely) true that UnitedHealth didn't design the U.S. system of corporate insurance, which kills tens of thousands of people a year through denial of care," Alex Lawson, executive director of the progressive advocacy group Social Security Works, told Common Dreams. "But they certainly have perfected it and turned it into a medical murder apparatus at industrial scale. They not only block all attempts to change the system in the direction of public health, they bribe and bully with their billions in blood money to make it even crueler."
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"Medicare for All is the only proposal on the table capable of delivering universal, continuous coverage for everyone, while also securing the efficiency and savings only possible through the elimination of private insurance."
While publicly pledging to cooperate with reform efforts, Witty has defended his company's care denials in private and urged his employees not to engage with media outlets in the aftermath of Thompson's murder.
Contrary to Witty's depiction of his company in his Times op-ed, UnitedHealth has historically been an aggressive opponent of reform efforts aimed at mitigating the harms of for-profit insurance and building public alternatives. The Leverreported in 2021 that UnitedHealth Group "held a webinar to pressure its rank-and-file employees to mobilize against efforts in Connecticut to create a state-level public health insurance option."
At the national level, UnitedHealth has spent over $5.8 million this year lobbying the federal government, according to OpenSecrets.
Witty, who was born in a country with a public healthcare system, did not detail the kinds of reforms he would support in his op-ed Friday, but it's clear he would oppose a transition to a single-payer system such as Medicare for All, which would effectively abolish private health insurance and provide coverage to all Americans for free at the point of service—and at a lower total cost than the status quo.
In a column for The Nation on Friday, writer Natalie Shure argued that "the appalling amount of resources and energy we put into maintaining the existence of health insurance is wasted on an industry with no social value whatsoever."
"You could eliminate every one of these corporations tomorrow and build a system without them that works better, for less money, and with less hassle," Shure wrote. "Other countries already have systems like this. Medicare for All is the only proposal on the table capable of delivering universal, continuous coverage for everyone, while also securing the efficiency and savings only possible through the elimination of private insurance."
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