Do “offshore” jurisdictions launder dirty money?
There is no evidence that low-tax nations attract a disproportionate share of dirty money. Most criminal proceeds are obtained and laundered in the United States and Europe. The United Nations, moreover, has acknowledged that criminals avoid so-called tax havens since they’re a “red flag” for law enforcement. It’s worth noting that the Sept. 11 terrorists apparently relied on cash transfers — as well as the banking systems of England and America — to obtain funds. This isn’t to say that U.S. or English bankers were accomplices. In most cases, it’s impossible for a financial institution to know that a customer has criminal intentions. This is why it’s so ineffective to pass wide-ranging laws that undermine financial privacy. The best way to stop crime — including terrorist acts — is for law enforcement and intelligence agencies to focus their resources on suspected criminals and their associates. In any event, tax-hungry politicians shouldn’t use the Sept. 11 attacks as an excuse to
