By Artyom Kobzev From The Voice of Russia

Combating money laundering is believed to be one of the key priorities of the UK as the current G-8 presidency holder. However, London failed to succeed in it, the Tax Justice Network, a coalition of researchers and activists, says. Two British overseas territories – the Island of Jersey and the Cayman Islands – were included in the top 10 list of the world’s secrecy jurisdictions. Now Russia, which to hold presidency of the G-8 next year, will have to resolve the problem of offshoring. And, as experts presume, it will do it in a completely different way.

Switzerland remains the best option for those who want to avoid taxes and hide their money without unveiling the source of its origin, an annual Financial Secrecy Index launched by TJN shows. The Cayman Islands and Jersey came second and seventh respectively. Both these offshore territories possessed by Britain don’t form part of the country but it has the sovereignty over them. Notably, enhancing of financial transparency and combating tax evasion became key priorities of the agenda set by the UK for the period of its presidency in the G8. However, London has failed to make much progress in this direction. First of all, due to the lack of interest, Igor Kovalev, Deputy Dean of the Faculty of World Economy and International Affairs, asserts.

“It’s a well-known fact that Britain obtains the major part of its profit through financial operations. Besides, it’s not a secret that it was Britain that blocked all the EU efforts to introduce new taxes on financial transactions which doesn’t correspond with the British strategy. Obviously, offshore companies are rather profitable for the UK,” Kovalev says.

Vladimir Rozhankovsky, the director of the Analytical Department of the NordCapital group of companies, shares the expert’s opinion. According to Rozhankovsky, over the last years British fiscal agencies turned the blind eye on the companies avoiding taxes in overseas territories in order not to destabilize the already precarious economic situation in the country. Next year, the G-8 presidency will be handed over to Russia and the approach to dealing with offshore companies might be changed, Rozhankovsky believes.

“Russia may ask why Cyprus was severely punished in contrast to other jurisdictions where the exact same things are going on. Let’s take another look at the war against money laundering which has been waged recently and try to explain in what way Jersey and the Cayman Islands are different from Cyprus. And try to ease on Cyprus as we have lots of companies there which lost money. I think Russia will say that it’s necessary to combat money laundering but it’s necessary to do it right,” he concludes.

It’s worth mentioning that Russia itself took the 25th place in TNJ’s list letting go ahead such countries as the US, Japan, Singapore, Canada, and Germany. We can’t leave out the possibility it will improve its rating next year. Experts note that in terms of combating illicit financial operations, Moscow achieved marked results. And the recent decision of the Financial Action Task Force was the indication of that. The organization granted Russia a milder monitoring regime while Japan, for instance, is still being strictly monitored by FATF.

© Photo: SXC.hu

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