New Ranking Reveals Corporate Tax Havens

New ranking reveals corporate tax havens behind breakdown of global corporate tax system; toll of UK’s tax war exposed.
Researchers call for new tax rules to “tax corporations where employees work, not where ledgers hide”

Decades of tax wars among the world’s richest countries are unravelling the century-old global corporate tax system, new research finds. Forty per cent of today’s cross-border direct investments reported by the IMF – $18 trillion in value – are being booked in just 10 countries that offer corporate tax rates of 3 per cent or less.

The Corporate Tax Haven Index, published today by the Tax Justice Network, has identified the UK and a handful of OECD countries as the jurisdictions most responsible for the breakdown of the global corporate tax system – with the UK bearing the lion’s share of responsibility through its controlled network of satellite jurisdictions. These countries have aggressively undermined the ability of governments across the world to meaningfully tax multinational corporations. An estimated $500 billion in corporate tax is dodged each year globally by multinational corporations1 – enough to pay the UN’s under-funded humanitarian aid budget 20 times over every year…..Taxjustice.net

Euro Babble

Cristina Kirchner Faces Corruption Charges

Argentina’s ex-President Kirchner faces first corruption trialCristina Kirchner, who recently announced a surprise vice-presidential bid, faces multiple corruption charges

Natalie Alcoba reports: Buenos Aires – All eyes in Argentina will be on a courtroom in Buenos Aires on Tuesday as the first corruption trial begins against former President Cristina Fernandez de Kirchner, who remains one of the most polarising figures in the country.

Days after announcing that she will run as a vice-presidential candidate in the upcoming election, Kirchner will stare down allegations that she headed up an illicit association that awarded 51 public works projects at inflated prices to a friend and businessman, Lazaro Baez, in her home province of Santa Cruz.

It is the first of 11 court cases against Kirchner, which include allegations of bribery and coverup….Aljazeera.com

by Dragan

Money Transfers in Seconds

A start-up that is trying to usurp Western Union and shake up the $689 billion money transfer market

Joel Dreyfuss reports: Like a lot of start-ups, TransferWise started with a simple idea, inspired by the frustrating personal experience of one of its founders.

Kristo Käärmann landed a job with Skype in London a decade ago but still had a savings account in his native Estonia. When he wired money home through his bank, he was surprised at the transfer cost. It was not just the bank fee that penalized him but the exchange rate the bank used to convert his pounds into euros. Käärmann’s fellow Estonian in London Taavet Hinrikus was paid in euros and needed to convert his pay into pounds, so they worked out a deal using mid-market foreign exchange rates. They soon had a network of friends exchanging money informally.

“We realized it was a problem not just for Estonians in London but for everyone who’s moving money internationally,” said Käärmann, now TransferWise CEO…cnbc.com
 
  • London-based TransferWise handles $5 billion a month in money remittances across 71 countries.
  • The flow of money between individuals across national boundaries totaled $689 billion last year and has benefited companies like Western Union and Moneygram.
  • TransferWise targets the cost of remittances, on average 7%, but as high as 10% to certain African countries.
  • In the last quarter, the money arrived in 19% of recipients’ bank accounts in less than 20 seconds.

    Retail Gazette

Money Laundering Remains A Major Risk For Banks

and not only for the Nordics.

Sam Theodore reports: The risk of being exposed to money laundering (ML) scandals is real for the European banking sector – and not just the Nordic groups currently under the spotlight. Investors and analysts are at a loss trying to anticipate when banks will be hit by ML troubles. There are no traditional analytical metrics to flag ML risk. Many believe that it is a black swan. “Bad things can happen to good banks out of the blue,” the market sighed in disbelief when Danske Bank’s ML problems surfaced….
Money laundering remains a major risk for banks

Money Laundering Through Bitcoin

Caught and Led to Astonishing Discoveries.

Shehryar Hasan reports:  After an undercover investigation, Cyprus R. Vance, the district attorney of Manhattan, has indicted money launderers and dark web drug dealers who reportedly sold and shipped drugs to 43 states in the U.S. and laundered $2.3 million using bitcoins.

Chester Anderton, Jarrette Codd and Roland MacCarty were indicted for dealing in Xanax tablets and other controlled substances like fentanyl-laced heroin, methamphetamine, ketamine, alprazolam, steroids, and pill presses on the dark web. They reportedly sold these drugs to 43 states. Apart from that, they also laundered $2.3 million using bitcoins.

The seizure of approximately 420,000 to 620,000 alprazolam tablets, 500 glassines of fenanyl-laced heroin, and other quantities of metamphetamine, ketamine, gamma hydroxybutyric acid, and other substances also marks the biggest seizure of pills in the history of New Jersey. The district attorney stated: Not only is this the first time state prosecutors in New York have taken down a dark web storefront, this take down represents the largest pill seizure in New Jersey’s history….Blockpublisher.com

Criminals use Bitcoin to Launder Dirty Money

Award For Journalists, Whistleblowers, And Defenders of The Right To Information

GUE/NGL award for Journalists, Whistleblowers and Defenders of the Right to Information, in Honour of Daphne Caruana Galizia

Commenting on the award, Daphne Caruana Galizia’s son,
Matthew, says:

“As corruption and crime continue to erode freedom and undermine security, our societies increasingly fall back on individuals who take personal risks to raise the alarm on wrongdoing.”

“Whistleblowers need protection and deserve recognition.”

The winners where announced at the European Parliament in Strasbourg on Tuesday 16th April 2019….

Watch here video intervention starts minute 37

guengl.eu
guengl-panamapapers.eu

Ladies and Gentlemen
 
from Yasmine Motarjemi PhD
Nyon, Switzerland
 
Today, after living nearly fourteen years in distress, in my thirst for justice, it is a day of hope. The sun is shining in my heart. Every day, for fourteen years, I have been looking through my mail in the hope of good news. A month ago, unexpectedly I saw that I had been nominated for this year’s Award for Journalists and whistleblowers in honour of Daphne Caruana Galizia ! What an honour it is to be associated with her ! 
 
I am very pleased to see that through this award, the importance of food safety, public health and human rights is being recognized. I hope that this award gives courage to employees in food and other businesses to stand for ethical practices and speak up when the health or interests of the public is at risk.
 
On this occasion, I would like to express my deepest gratitude to those who have nominated me, to the jury who has honoured me with this award and has given me the opportunity to speak in this forum. Also, I wish to express my warmest thanks and appreciation to those who believed in me and have stayed by my side during these difficult years. I hope that at this occasion I can also be the voice of other whistleblowers in Switzerland, France or elsewhere in the world, as well as those victims of abuse at work and those fighting for their justice. My thoughts are also with my family who have had to endure the consequences of the events.
 
***
 
Who am I and what did I do with my life? My name is Yasmine Motarjemi. I am a former senior scientist and Acting Director of the World Health Organisation. In my last position, I was an Assistant Vice President at Nestlé, in charge of global food safety. I held this position until 2010, when I was fired. It may be interesting for you to know that I was born in Iran but have a triple nationality in the countries of Iran, Sweden and Switzerland. 
 
However, today, I am speaking here as a citizen of the world to the world. I would like to speak about health and safety, about life – your life. I would like to say that, regardless of political inclination, race or religion, human life matters. I would also like to say that I stand for citizens’ rights to know how the safety of products are managed and what some employees endure to ensure the protection of people’s health. I would like the public to know that we, whistleblowers, pay a high price for reporting information that the public need to know. 
 
***
 
My battle for food safety, public health and human rights started 14 years ago. However, this was preceded by 25 years of hard work to improve food safety and public health in the world. In a competitive and macho world, the road to success was not easy. It involved many uphill struggles. My personal story of pain and suffering that Nestlé has inflicted upon me is nowhere near as important as the outrage that resides in me from my experience with the despicable manner that food safety has been managed in this specific case.  
 
Time does not allow me to go into the details of mismanagement that I experienced in Nestlé (For information on this subject see the  document entitled A battle in name of food safety, public health and human rights  https://issuu.com/ymotarjemi/docs/a_battle_in_the_name_of_food_safetyI can only say that I really did not mean to become a whistleblower, but Nestlé management did so much wrong, that I felt that I had no choice
Perhaps, the worst thing that the Nestlé management did was to refuse to pay attention to my internal reporting as a result of which incidents happened. To err is human, to persist in error is diabolical. 
 
***
Instead of addressing my food safety concerns, after several years of excellent performance, Nestlé Management subjected me to a severe case of sustained and persistent psychological harassment, which felt like torture to me. For four years, while continuing to fulfil the responsibilities of my senior position, my superiors stripped me from my projects and prerogatives, dismantled my team, humiliated me, isolated me, defamed me, denigrated my opinion, blocked my instructions, withheld information, spied on me, threatened me, forced me into impossible or humiliating jobs and they did all this and more without any regard for the implications of such practices.
 
The daily humiliations felt like being lashed over and over with a whip. The isolation and exclusion from the professional world felt like a prison, a large prison without walls and yet still a prison as no one talks to you, no one sees you and no one hears you. Sometimes one wishes to be dead rather than go through such harassment. 
 
***
I share my story because my abuse is a symptom of an even deeper, much larger problem. If Nestlé or other companies can behave this way, break the law and bully individuals and communities alike, it is because public health and judicial authorities are failing to meet their responsibilities.
 
Even when I reported incidents to public health authorities, NGOs, Unions or my professional community, with few exceptions, they were not interested in investigating food safety management problems that I was reporting or in learning from my experiences.
 
What can explain this deliberate ignorance ? They are all afraid of Nestlé, I am told. Our society has been taken hostage by fear!  I may say.
 
***
The only option for me was to report my case to judicial authorities. However, even then I was subjected to retaliation. Nestlé counter-sued me for violating professional secrecy. Nestlé also teamed up with my litigation insurance company, which I had to challenge in another court. The Fonds de Pensions Nestlé (Nestlé Pension Fund) sued me for my publications and my efforts to survive professionally. These are just a few of the major hurdles I have faced. However, the path to justice is often long, arduous and full of pitfalls. Victims have sometimes to confront false medical examinations, mischievous lawyers, sham investigations, misleading facts or half-truths, character assassination and more. It is difficult to put into words the cost I have paid in terms of my health, the well-being of my family, the strain on my financial resources and the impact on my life overall. Although the impact on me has been profound, it remains a symptom of an even larger problem. 
 
The main problem is the justice system. After 8 years of judicial battles, standing alone against a giant corporation and other large companies, the Swiss court confirmed that I had been subjected to psychological harassment. However, surprisingly, the court refused to condemn Nestlé and to compensate me for my expenses and losses. To this end, after 8 years, it considered my request to be inadmissible and viewed that Nestlé had acted legally. The court decided to ignore the fact that Nestlé never examined my concerns for food safety. There were no consequences for the manager responsible for both the mismanagement of food safety and my harassment. He remained in his senior position and was never sanctioned. 
 
When the justice system allows companies to commit social and professional assassination of whistleblowers without sanction and turns a blind eye to their alerts against wrongdoings, then I can only conclude that our system is corrupt. 
 
***
Although my whistleblowing experience started by attempting to deal with lapses in food safety management, my story ends by showing a total dysfunction of our society. 
 
My experience is similar to the situation of other whistleblowers in Switzerland and in other countries, as if the same formula is applied again and again to dismantle the lives of whistleblowers, our health, reputation, social status and financial security. The irony is that my story is happening in Switzerland, the country that best symbolizes democracy and rule of law, and it is taking place under the nose of the very organisations set up to protect human rights and public health. 
 
Although, the events reported above took place in Switzerland, the results of Nestlé mismanagement in food safety can have consequences anywhere in the world. My case shows that, in a globalised world, the lack of a fair legal and judicial system in Switzerland, as it pertains to whistleblowers, is a threat to the interests of communities worldwide.
 
Thank you for this award which definitely brings a positive note to this chapter of my life. The Persian poet Rumi (1207-1273) describes well this day, this moment, of my life:
 
 “Your legs will get heavy and tired. 
Then comes a moment of feeling, 
the wings you’ve grown, lifting.

 

 

International Action Against Money-Laundering ‘Laundromats’

PACE urges international action against money-laundering ‘laundromats’

PACE has expressed its deep concern at the extent of money laundering in Council of Europe member States, notably the recent examples known as the “Global Laundromat”, the “Azerbaijani Laundromat” and the “Troika Laundromat”, and has urged improved national mechanisms and international co-operation to combat it.

In a resolution based on a report by Mart van de Ven (Netherlands, ALDE), the Assembly said these “laundromats” involved large sums of money from wealthy businessmen, organised criminals and high officials. They exploited various weaknesses across multiple jurisdictions, including shell companies, often based in the United Kingdom or its Overseas Territories, and poorly regulated banks, notably in the Baltics.

The Global Laundromat involved corrupt Moldovan judges, the parliamentarians said, while the Troika Laundromat involved people close to the heart of state power and the Azerbaijani Laundromat contributed to corruptive activities within the Parliamentary Assembly itself. None has been adequately investigated by national authorities.

The Assembly makes a series of recommendations to member States, to the European Union and to the Committee of Ministers intended to reinforce the international fight against money laundering, organised crime and corruption.

The fight against ML and FT is about how to protect the rule of law, human rights and democracy against dangerous, destructive forces. Forces that have already damaged European democracy.

Pls. see the speech from rapporteur Mart van de Ven (Netherlands, ALDE) presenting his report to the Council of Europe…occrp.org/en/troikalaundromat

Watch the Video Report:

https://vodmanager.coe.int/coe/webcast/coe/2019-04-11-2/en/4

Artist Fernando Lllera
https://www.w-t-w.org/en/fernando-llera/

A Whistleblower’s War Against Off-Shore Banking

Rudolf Elmer
‘‘I feel really destroyed. I went through a financial, social, professional death.’’

It was in 2011 when Rudolf Elmer stood in front of the press with two CDs in his hand, allegedly containing the names of over 2,000 offshore banking clients. That the disks were, in fact, empty did not prevent the publicity scoop, he recalls in our interview. “What went through my mind is I’m sending a message out to the world. And the message was my story.’’

Tamara Davison reports:

Rudolf Elmer is one of many whistleblowers that have attempted to take on some of the world’s largest institutions and expose illegal handlings. But speaking out came at a high personal cost, culminating in months spent in prison and a psychological breakdown. Fourteen years later, the question remains as to whether justice has been served.

In the pursuit of truth 

Last week the owner of Wikileaks, Julian Assange, was rumoured to be expelled from the Ecuadorian embassy where he is currently seeking asylum for breaching ‘asylum terms’.  Assange’s name has briefly made headlines again and the debate about whether he is a hero or a criminal reared its head.  But as with many whistleblowers, the struggle continues even after the media storm has settled.

‘‘What is happening to Julian Assange is actually the very same thing what happens to most or even every whistleblower,’’ Elmer told me.  ‘‘After having blown the whistle life becomes difficult…and secondly, civil society loses interest in what happens with the lives of whistleblowers.’’

‘‘What is happening to Julian Assange is actually the very same thing what happens to most or even every whistleblower”

Elmer had been a private banker and trusted employee of the Swiss financial institution Julius Baer Bank & Trust Company Ltd since the 80s.

After a long career in Zurich, Elmer was promoted to internal auditor at the company in 1994. His new role for Julius Baer would also lead him to the Cayman Islands. When he arrived, the chief accountant of the company welcomed his move to ‘‘the other side of the fence’’.

Indeed, the picturesque Cayman Islands have long become a symbol of shadow banking, the dark side of the financial industries. They are one of many off-shore sanctuaries where tax freedoms and financial loop-holes make for a lucrative place to protect money, and there are a number of recognisable bank institutions that can be found there. The small Caribbean island has been the subject of institutional mishandlings which has since led to the introduction of the Island’s Whistleblowing Protection Law in 2015.

This was not in place, however, in the controversial series of events that led to Elmer losing his job. In 2002, he failed a lie-detector that is employer claimed to be routine – a measure he later tried to dismiss as unlawful with the help of a lawyer.  He was abruptly fired from his position without any severance pay or contractual promises.

Threatened and arrested

‘‘They threatened that if I take the bank of court, they’re going to finish me off: a clear message,’’ Elmer recounts upon returning back to Switzerland. Elmer claims that himself, his wife and daughter were all terrorised by individuals associated with his former bank after losing his job.

He instead chose to send confidential back-up data that he still had within his possession to Swiss tax authorities in a bid to raise the alarm. In 2005, instead of going after the bankers implicated in his data he was arrested and held for 30 days for breaching confidentiality laws for attempting to leak the information.

Two years later he threatened to take data public if they didn’t stop following Elmer and his family. The whistleblower claims that Julius Baer employees, set on discrediting Elmer, then disclosed information to his next employer which led to Elmer’s firing, and failure to find further work.

Allegations of other threats conducted by the former financial employee also came to light in the coming years, such as falsifying a document and conducting threatening phone calls, and the pressure on Elmer continued to grow.  

In 2011 the story erupted when Elmer delivered the mentioned CDs to Wikileak’s Julian Assange at a public press conference. Among the files shared with WikiLeaks were the alleged names of countless politicians and officials from all over the world, who were implicated in unlawful financial handlings. ‘‘The disks where empty…I’m not that stupid to hand over CD’s publicly when the UK police is next door,’’ Elmer explains. Yet he was arrested shortly after, once again, and this time spent 220 days in solitary confinement.  

‘‘My wish was when I was 22 was to have an interesting life, that really happened”, he says when he recalls how his decision to go public would change every aspect of his previous life.

The results of whistleblowing led to an ongoing legal battle between Elmer and various pillars of the Swiss financial and legal systems.  In addition, he was discredited from working in finance, a sector he loved, was required to pay staggering legal fees and even had a dramatic collapse which left him in a psychiatric ward for a brief period.

Is Switzerland shielding its financial industry?

Image courtesy: Rudolf Elmer.

Elmer suggests that Switzerland has a ‘‘morally corrupt judicial system to protect the financial industry, as simple as that’’. Although the country’s Supreme Court ruled 3-2 last year that Elmer was not guilty of breaking Swiss financial confidentiality laws – which could have seen him imprisoned for three years – there have been legal hurdles throughout the process.

‘‘(The authorities) have to protect the golden coffer and they can’t accept that a whistleblower or any truth teller or conscientious objector who reports a crime in the financial industry in Switzerland walks away and is the hero. That can’t be’’.

There are examples that back up Elmer’s claims that the Swiss judicial system is either choosing not to pursue criminal cases linked to banks or being ineffective at doing so. In 2017, HSBC paid French prosecutors 300 million euros to end a probe into the Swiss-arm of their company for tax evasion.

Swiss sentences for whistleblowing also appear harsher than other countries. For example in the case of Swiss Leaks’ Hervé Falciani, who Spanish authorities refuse to extradite to Switzerland because there are no equivalent Spanish laws linked to his charge of ‘aggravated financial espionage’.  Earlier this year the Financial Times explained that Switzerland remains behind other countries when it comes to protecting whistleblowers, and structures mean that the Swiss financial system is able to continue working unabated.

‘’Has Justice been served? In my case, justice no, on the contrary, life is punished.’’

Rudolf Elmer has pried open the lid on his country’s secretive banking industry and attempted to fight the legal system singlehandedly. However, as of yet, there is no change to the Swiss financial system or the laws established to protect it. And so far, there is little coordination between countries or larger institutions such as the EU or the UN on whistleblowing protections.

‘’Has Justice been served? In my case, justice no, on the contrary, life is punished”, Elmer concludes.

Even though the cost of professional suicide has left a permanent mark on Elmer, he remains an advocate for holding the financial and legal systems accountable. And he considers himself lucky as opposed to other whistleblowers who are now in exile or imprisoned around the world: “‘I do so for the whistleblowers who actually went down the drain, I feel I have a responsibility to do it because I can”…..150sec.com

Isabell Hemming
www.w-t-w.org/en/isabell-hemming

Jammeh’s Taiwanese Alliance and the Hezbollah Laundromat

One of Yahya Jammeh’s first diplomatic acts after seizing power in Gambia was to establish diplomatic ties with Taiwan.

The move was a clear-cut case of checkbook diplomacy, common in West Africa at the time, but it still rocked the boat in 1995. Gambia had violated Beijing’s golden rule of foreign policy – that all countries must see Taiwan as part of China.

The recognition ended up being worth millions for Jammeh.

He also amassed vast sums from business deals he struck with financiers of Hezbollah, a militant group based in Lebanon, which the United States has designated as a terrorist organization since 1997.

In Hezbollah, Jammeh found wealthy investors who needed to launder their money to get around international sanctions — and gave them access to his country’s economy in exchange for a cut of their business.

The two moves defined Jammeh’s approach to international relations. Throughout his 22 years in power, from 1994 to 2016, he often defied the foreign policies of global superpowers – sometimes on principle, sometimes to line his pockets…..– OCCRP

occrp

No Money For Terror

This week, an international project to disrupt the funding of terrorist activities brought together more than 50 experts in counter terrorism financing (CTF) at Europol’s headquarters in The Hague. The conference’s key objective was to strengthen the international network of CTF investigation units, enhance public-private partnership cooperation and improve big data analysis to fight terrorist financing efficiently.

The conference is part of a two-year project coined BeCaNet (best practice, capacity building and networking initiative among public and private actors against terrorism financing). The BeCaNet initiative brings together public and private players and is directed by the German Federal Criminal Police (Bundeskriminalamt, BKA). Official partners of BeCaNet are the police state security units from France (Sous-Direction Anti-Terroriste, SDAT), the Spanish National Police (Comisaría General de Información, CGI), the United States Federal Bureau of Investigation (FBI) and Europol….No money for terror/ europol

Arend van Dam
www.w-t-w.org/en/arend-van-dam