Tax havens have a central role in facilitating corruption. The development of transnational finance brought with it corresponding risks of corruption. Corrupt practices have utilised the same systems and channels developed by those wanting to evade and abuse tax.
The role of accountants, lawyers and other financial intermediaries frequently avoids the scrutiny it deserves in facilitating corruption. Financial secrecy laws and policies and the vast network of secrecy jurisdictions have played their part in unchecking, and worse, driving corruption. Corruption and related crimes of human trafficking thrive on secrecy and generate widespread human abuse and misery. Women and girls are disproportionately impacted as targets of traffickers. Corporate power, governments and intergovernmental institutions which influence the design and development of tax policy and secrecy laws, and who resist much needed reform, are complicit in perpetuating corruption.
Learn more about the role of tax havens in corruption here.