The global war on Black money .
European union Model and Plans :
Last March MEPs voted overwhelmingly to introduce a new transparency disclosure rule that would compel all 28 European states to make publicly accessible the real owners of companies and trusts.
The decision was hailed as a major breakthrough by anti-corruption campaigners fighting financial crime and tax abuse.
Lawyers working for drug cartels and corrupt individuals for years have used so-called shell companies to move money across borders on behalf of their clients.
In this way, criminals and tax evaders have remained hidden.
The EU parliament vote last March appeared to put an end to what has been dubbed “phantom firms” and “shell games”.
But as final negotiations on the EU’s Anti Money Laundering Directive are set to conclude this evening, it appears the resolve of European policymakers to pass what is seen to be a crucial new anti-corruption tool is weakening.
A leaked draft compromise agreement passed to the Bureau of Investigative Journalism shows that the directive may fall short of making registers completely public.
Instead, according to the draft: “Member States may restrict the use of data obtained …to the purposes connected with a legitimate public interest under the EU or national law, such as the fight against money laundering or terrorist financing or associated predicate offences.”
The introduction of this condition is seen by campaigners as watering down what MEPS voted for just eight months ago.
Additionally, the compromise draft allows member states to provide a case-by-case exemption “if this would expose the beneficial owner to the risk of identity theft, fraud, kidnapping, blackmail, violence.”
The exemption could make it far harder for public interest journalists and campaigners to collect information on a company or trust’s true “beneficial owners”.
MEPs are meeting this morning to finalise their position before entering into what are expected to be final negotiations on the new AML directive with EU member states this afternoon in Strasbourg, France. Talks are likely to conclude this evening.
Under the current draft compromise agreement, all European Union countries will be required “to obtain and hold adequate, accurate and current information on their beneficial ownership” which must be held “in a central register”.
Details of the real owners of companies’ and trusts’ nationality, country of residence and “number of shares, categories of shares (including the nature of the associated voting rights) and proportion of shareholding or control” will be supplied to central registers if the draft gets translated into EU law.
But it is understood that member states led by Germany are attempting to restrict the information collected to just the name and date of birth of beneficial owners.
It is thought unlikely that MEPs, led by co-rapporteurs Dutch Green MEP Judith Sargentini and Latvian EPP MEP Krišjānis Kariņš, will sign up to the German led attempt to restrict the information that has to be disclosed to the new registers.
If MEPs hold firm on this detail, it could mean any agreement on a new Anti Money Laundering Directive will have to wait until next year when the Latvian government assume the EU Council chair.
Last night a collection of campaign groups including Global Witness, Transparency International and the Financial Transparency Coalition wrote to Judith Sargentini urging her “not to accept any compromise … that does not include fully public information on beneficial owners”.
Last week 45 journalists from 23 countries urged EU Commission president, Jean-Claude Juncker to force through beneficial ownership public registers. On Friday, Juncker responded in a letter to the Bureau which fell short of outright endorsement of the measure. The EU president said he would seek “clarification on the possibility of access by third parties who demonstrate a justified legitimate interest.”
After days of high level negotiation and intense lobbying by campaigners, the EU last night agreed to introduce registers that will list the ultimate owners of companies.
The EU’s fourth Anti-Money Laundering Directive aims to make it harder for criminals and tax cheats to evade detection.
The registers will be accessible in all 28 member states to people “that can demonstrate a legitimate interest” such as investigative journalists.
Countries will now have to collect:
month and year of birth;
country of residence; and
shareholding of any one with an interest in a company.
The EU’s new Anti-Money Laundering Directive will also force member states to collect details on the ultimate owners of trusts.
But information on trusts will not be made available to the public. This, say campaigners, has created a loophole which could significantly weaken the new directive.
Countries such as Germany and the UK are understood to have blocked the public disclosure of trust owners in a move that has frustrated transparency campaigners.
“Today the EU has gone a long way towards making life harder for the corrupt politicians, money launderers and other criminals who hide their loot behind European shell companies,” said Robert Palmer, anti-money laundering campaign leader at Global Witness.
“It’s a big moment, but not as big as it should have been. By stopping short of giving the public full access to information on who really owns and controls companies, European leaders have missed an opportunity to show that the future of business in Europe is open and transparent.”
Campaigners will now be scrutinising how individual countries implement the new directive.
The directive still needs to be endorsed by EU member states’ ambassadors and by the European parliament’s Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees before being put to a vote by the full parliament next year.
Financial Cheating by Banks : case Study for people and companies who will use these routes for money laundering.other instruments diamonds,betting ,gold ,shell companies ,fake loans , drugs , woman trafficing , fake people , criminal brokers , terrorist funds , relegious donations .
Banking chiefs last month apologised for rigging the world’s $5.2tn foreign exchanges. They blamed a relatively small number of rogue traders saying they brought disgrace to the financial services industry.
But a recent devastating report by city watchdog, the Financial Conduct Authority (FCA) suggested the City could be over-charging pension funds and other investors to the tune of tens of billions of pounds through arguably the most basic financial services function: executing the buying and selling of shares, bonds and foreign exchange.
Last July, the FCA surveyed 36 banks, wealth management firms and inter-dealer brokers to establish whether they had adequate policies and compliance checks in place to give reasonable safeguards that clients’ orders were being executed in a timely, fair and efficient fashion.
The FCA’s probe into so-called “order execution” found widespread failure to get the best deal for clients through lax compliance, lack of appropriate management oversight and, on occasion, rule breaking.
Under FCA rules, all City firms have an obligation to provide clients with “best execution”. Firms must ensure that, taking into account the size of the deal and the market conditions, a trade is done at the best price, as speedily as possible and at the lowest cost in terms of commission paid.
But the Best Execution and Payment for Order Flow report suggested most banks, brokers and wealth management firms were failing on their obligations to clients – in many cases ordinary pension fund holders.
The cost to investors – pension funds, insurance companies and other savers – could be enormous. The FCA stated: “Given the scale of assets under management in the UK, how firms perform on best execution could have a significant impact on investor returns”.
To give an indication of the impact, the FCA calculates that over a 30 year period investors would be £37.5 billion better off if the costs of trading were reduced by just one hundredth of 1%.
On foreign exchange markets alone, analysis by New Change FX, a company that helps asset managers reduce the costs of transactions in global currency markets suggest that miniscule mark ups in the costs of transactions by banks and brokers could cost Britain’s 20.7 million pension holders £7.5bn every year: that’s £300 per pension holder each year according to New Change FX.
The US System and facts ;
Democrats made sport of decrying, vilifying and crucifying the billionaire Koch brothers for injecting hundreds of millions of dollars worth of Republican-boosting “dark money” into the 2014 elections.
But newly minted Federal Election Commission Chairwoman Ann Ravel — a left-leaning Democrat and campaign finance reformer, by most any political measure — has no appetite for such theater. Even if, as chairwoman of the California Fair Political Practices Commission last year, she helped levy massive penalties on Koch-backed groups caught circumventing state political disclosure laws.
“The Kochs, they are not a problem to me, nor are their activities specifically anything I want to address,” Ravel said. “Dark money is a broader problem — a much broader problem. It’s a problem for those on the Democratic side as well as the Republican side. It’s not a partisan question for me.”
“Dark money — it’s an issue that’s been of grave concern to me for the past two years,” said Ravel, who has served as FEC vice chairwoman this year. “The dynamics of political campaigns have changed so much, and we have to keep up. We have to talk about it.”
Indian system and facts ;
out side dark money : US$ 700 billion
In side dark moeny : US$ 200 billion
Money spent in recent elections : US$ 70 billons by all parties and all people.
Money routed through : Betting , drugs , gold , counter fit notes , benamies , terrorist links , land deals , media deals , Crony captilisim by indian comapnies who are in gas and oil , telecom , energy , contracts , media , drugs, land, coal , Divison of states and scandals , IPL betting and terrorist money routed to Protugal betting centers 40 thousand crores for each IPL season , lastly Summggeling of animals , tress etc
The world wistle blowers , transperency internatoinal and other anti corruption activists are open strop this global virus which is dangarous than HIV , Ebola , Cancer .
One immediate model ; If we have list of all glod , jewellary business registrations , individuals all over india we can get clear picture and list of imports.
Like swatcha barath All indians must be educated about gold and usage of gold no excess gold, diamonds model things will chage.
moniter and sacn : Global diamond , gold export cities and Africa.
This will make Dirty money to die and also make less Gold imports to save indian economy.
Gold , diamond ration and proxies monitering will bring lots of changes
Criminals who are destablising indian economy , growth and corrupt people must be executed like terrorists and Murders.
Dirty money , black money , drugs , terrorist funding is nothig but RAPING Indian Democracy and killing 400 Million indian youth and thier children , their family members.
Benamies , brokers can be punished.