According to the Secretary of the Treasury, “large-scale illicit funds” end up in the US financial system.
U.S. Secretary of State Thursday lamented that “large amounts of illicit funds” are found in the U.S. financial system if small countries are seen as a major haven for concealing or embezzling money from tax authorities.
“There is reason to believe that the United States is currently the best place to hide and launder fraudulently earned money,” Janet Yellen said in a speech at the Democratic Summit on Thursday.
Switzerland and the Cayman Islands have long been the crossroads of tax authorities around the world. But the US Secretary of State took the view that funds exposed by corruption or illegal activities would only be sent to “countries with soft and secret financial regulations”. He described the anti-corruption strategy used by President Joe Biden’s administration this week.
He justified that we should “lighten the focus” on the “gray areas” in the United States, citing some US states that allow shell companies to be created without knowing who they really are. Last January the US Congress passed a law requiring US companies to notify their beneficial owners to the federal government, which would mean leaving the United States, which would make the law more flexible in this area, for example in states such as the United States. Delaware, home of President Joe Biden.
The program will create a database to register the “beneficial owners” of all businesses and multiple trusts, meaning that 25% of a business owner or business can make decisions. Similar rules apply to real estate transactions because many corrupt actors can hide their money in skyscrapers in Miami or Central Park, “Janet Yellen said Thursday, calling them” 81st floor laundresses. “
He also commented that this “financial alchemy … mocks our independent and fair institutions”. He finally “condemned the failed tax system in the United States, which allowed high-paid individuals and large corporations to go unpunished during fraud.”