The G20 finance ministers and central bank governors who convened in London yesterday came up with countries which don’t comply with the international openness demanded to halt the shady banking secrecy practices which works against the world economy— by spuriously affecting the value of global assets.
Philippines, Uruguay, Chile, and Malaysian Territory of Labuan were blacklisted by the Organization of Economic Cooperation and Development (OECD) for failure to follow rules on financial transparency. The citation makes these countries among those which provide cover for tax avoiders who hide money from their home countries. Tax avoidance helps weaken the economy of the world especially those of the poor countries.
The incompatibility of the current Philippine laws to the international agreements is blamed for non-compliance. Faced with possible sanctions, the government is just about to work on reconciling local laws —something it should have done much earlier.
In 2001, Republic Act 9160, a money laundering law was passed, but was quickly revised to give protection to corrupt individuals who stash money away to avoid taxation.(Photo Credit: London Summit) =0=