Global efforts essential to tackle money-launderers
Transparency International New Zealand Chief Executive Suzanne Snively has said that an Auckland company is caught up in an international money laundering controversy after it was identified helping to manage a network of New Zealand-registered companies and trusts for its secret clients.
Her article that appears in this issue under Homelink, say that New Zealand remains vulnerable to the flow of illicit offshore assets.
Most countries have in place Anti-Money Laundering and Countering Financing of Terrorism legislation to combat illegal monetary transactions.
There is little evidence that the statute is working, but we live in the hope that it would eventually and keep money where it should be- in the “official economy.”
About ten years ago, the New Zealand government froze $64 million worth of assets of a group of Australian tax evaders at the request of its counterpart in Canberra.
Illegal money beyond estimate
Putting a value on money laundering is, by its very nature, a matter of ill-informed guesswork. The International Monetary Fund reckons that the amount of dirty money being cleaned through the world’s financial system is a whopping $US 2 trillion a year, equivalent to more than 7% of Gross World Product.
Laundering has grown hand-in-hand with globalisation, and particularly with the lifting of capital controls and the development of international payment systems.
These allow money to be shifted in seconds between banks in different parts of the world that may not even be aware of each other’s existence.
The effective channel
Private banking is the laundering channel that has received most attention. Clients in this sector tend to be wealthy people who want their affairs handled with discretion, not least because they need help in exploiting opportunities to minimise their tax bills.
However, it is time to take more stringent action.
Cooperation of all governments and financial institutions is imperative.
Indian Newslink is published by Indian Newslink Limited from its offices located at Level 1, Number 166, Harris Road, East Tamaki, Auckland 2013 and printed at Horton Media Limited, Auckland. All material appearing here and on our web editions are the copyright of Indian Newslink and reproduction in full or part in any medium is prohibited. Indian Newslink and its management and staff do not accept any responsibility for the claims made in advertisements. Managing Director & Publisher: Jacob Mannothra; Editor & General Manager: Venkat Raman; Production Manager: Mahes Perera; Sales & Marketing Manager: Ronny Kumaran; Assistant Editor: Ratna Venkat; Financial Controller: Uma Venkatram CA; Phone: (09) 5336377 Email: info@indiannewslink.co.nz
Websites: www.indiannewslink.co.nz; www.inliba.com; www.inlisa.com
