From the EU Observer:
"EU member states Cyprus and the UK have been named by the World Bank as two of the world's leading destinations for money launderers. The Washington-based body in a new report noted that out of 150 high-level corruption cases exposed in recent years, the UK and UK overseas territories Bermuda, the British Virgin Islands, the Cayman Islands, the Isle of Man and Jersey hosted 172 companies used in criminal schemes."
This is taken from the World Bank's recent in-depth Puppet Mastersreport, and these numbers appear to be taken from Table B3 on p121. To be clear, it seems that by "UK" the report means the UK and its dependencies. The biggest single jurisdiction, in terms of corporate vehicles employed, was the United States. The table, which involves just a snapshot of the real picture, is below. Click to enlarge; click here for the full report which will serve as a useful reference for us for the future.
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A fascinating table, but it really just shows that money laundering goes on everywhere. These might be the top 20, but when you look at it more closely there are only 485 of the 817 corporate vehicles mentioned. That leaves 332 corporate vehicles in other countries and even if they all have 6 each that is at least another 55 countries we don’t see.
Furthermore the table would perhaps be more useful if it made it clear how many of the Commercial Vehicles were related to a single case of money laundering. For example the 8 in the UAE might all relate to the same offence, but the 7 in the India might relate to 7 difference offences, which would suggest it is a far more of a problem in India than the UAE.
http://www1.worldbank.org/finance/star_site/documents/Puppet%20Masters%20Report.pdf
Every student of tax haven abuse should have this at the top of their “Reading List”.
Clear, coomplete and informative.
Just how have these banks, accountants and lawyers got away with it for so long?
It’s brilliant
I need to blog it more
Money laundering is a Worldwide problem. Annual money laundered is estimated at around the US$2 trillion mark or an estimated 2-5% of World GDP.
I’m not surprised at the top ten (equating to approximately 50% identified in this report) being USA, BVI, Panama, Liechtenstein, Bahamas, UK, Hong Kong, Nigeria, South Africa & Cayman. It would appear from the report that the UK listing did not include dependencies.
Some of the other tables are interesting including those jurisdictions that still have service providers setting up entities without ID like USA, UK, Singapore and Hong Kong.
As you will know there are currently five UK banks currently facing enforcement issues from the FSA in respect of AML failings when dealing with high risk account holders and PEPs.
As I said at the start, money laundering is a truly global problem.
Interesting but not surprising to see Guernsey is not listed in the top 20. Anyone who has tried dealing with Guernsey banks recently will be aware that their procedures are such that you tear your hair out just opening a simple account!
Crafty people (or perhaps devious is a better word) “run” Guernsey.
They cover their tracks by pretending to be brainless..
Beneath this masquerade lies a professional team of bankers, lawyer and accountants equal in “organising” money to anything on the Isle of Man or Jersey.
They seem to believe that a veneer of stupidity will project an image of innocence …..