Tax havens beware, fiscal transparency, and what else? The rules are changing and it's crazy out there!

Abstract

Globalisation, free trade and electronic commerce have facilitated easy business for transnational criminals in a borderless world. Governments and law enforcement have addressed these uncontrolled evils by designing and elaborating new international enforcement regimes. An international criminal cooperation regime establishes a set of rules among governments and international organisations that requires cooperation in the investigation, prosecution, adjudication and execution of judgments in criminal matters. International cooperation on criminal matters is an evolving regime that has recently given rise to a subregime whose purpose is to regulate international money movement. International and foreign laws that regulate the movement of money are a relatively recent phenomenon in international law enforcement. These laws, also known as anti-money-laundering law, reflect a steadfast commitment by governments and international organisations to combat illicit drug trafficking and other forms of illegal criminal activity, especially as conducted by organised crime. Laws are being ratified in several countries in an effort to develop an international criminal cooperation regime. The paper captures the elaboration of an international tax enforcement subregime, especially through the OECD harmful tax competition initiative, the anti-money-laundering enforcement subregime, and the new international financial architecture — all directed at ending or curbing abuses in the operation of international financial services in offshore financial centres, their responses, and implications for the private sector. This paper is reprinted with permission from the 19th Annual International Tax Conference by the Florida Bar, Wyndham Miami Beach Resort, 25th–26th January, 2001.