Curtailing Illicit Flows

Global, Regional, and Domestic Policy Options

Raymond BakerPresident, Global Financial Integrity

September 9, 2014

Policy Themes

• Greater transparency in domestic and international financial transactions, and

• Greater cooperation between governments to shut down the channels through which illicit money flows.

Recommendations Include

• Instituting transparency of company ownership;

• Building capacity to effectively implement emerging tax information exchange arrangements; and

• Taking stronger legal measures against trade misinvoicing.

Curtailing Trade Misinvoicing

• Legislation• Declarative Statement• Real-Time Access to Pricing Data• Audit Verification

Legislation

Adopt legislation making abusive trade misinvoicing, on any transaction with this country, wherever and however it is done, against the law.

Declarative Statement

In relation to the importation or exportation of goods or in relation to the importation or exportation or utilization of services or intangibles, there has been no misstatement of price, quantity, quality, volume, or other substantive term of invoice i) for the purpose of manipulating customs duties, VAT taxes, income taxes, excise taxes, or any other form of revenues collected by or to be collected by the Government, or ii) for the purpose of evading or violating banking, capital, or foreign exchange controls or anti-money laundering statutes or terrorist financing prohibitions.

                                                                 ___________________

                                                                   

Chief Executive Officer

Real-Time Access to Pricing Data

Access to U.S. and E.U. trade pricing data on 25,000 Harmonized System categories of trade goods.

Audit Verification

Auditors required to sign a statement on audited accounts confirming that upon their examination and to the best of their ability to determine the Chief Executive Officer’s Declarative Statement i) has been fully complied with, or ii) has been or may have been violated in the following specified incidents [list].

Political Will

• Political Will• Political Will• Political Will

Contact Information

Today’s Speaker:

Raymond BakerPresidentGlobal Financial Integrityrbaker@gfintegrity.org+1 202 293 0740

Press Inquires:

Direct all press inquiries to:

Clark Gascoigne

Communications Director

Global Financial Integrity

cgascoigne@gfintegrity.org

+1 202 815 4029

www.gfintegrity.org