PHOTO: The Financial Secrecy Index (FSI) examines the legal and financial systems of each country.ABC News: Alistair Kroie
Australia continues to host significant quantities of illicit funds from outside the country and is not doing enough to counter money laundering and tax avoidance, according to the 2020 Financial Secrecy Index.
Key points:
- The Tax Justice Network’s index, released every two years, rates countries based on financial transparency
- Cayman Islands ranked as the world’s biggest contributor to financial secrecy, followed by the US and Switzerland
- Despite its relatively low ranking at number 48, Australia hosts significant quantities of illicit funds from outside the country
The Tax Justice Network’s index, released every two years, rates countries based on financial transparency.
The Financial Secrecy Index (FSI) ranks each country based on how intensely the country’s legal and financial system allows wealthy individuals and criminals to hide and launder money extracted from around the world.
The Cayman Islands ranked as the world’s biggest contributor to financial secrecy, as a result of the once-notorious tax haven increasing the volume of financial services it provides to non-residents.
The report also noted major risks emanating from Cayman’s hedge fund industry, which uses companies, trusts and limited partnerships that are “cloaked in secrecy”.
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