The Washington-based Center for Freedom and Prosperity Foundation this week released a study, reportedly based on government data, demonstrating that there is no link between so-called tax havens and money laundering.
*”This new study uses State Department, CIA, IRS and FATF findings to show conclusively that countries with low tax burdens and financial privacy are not any more likely to be money laundering centres than high-tax countries. In fact, it shows the opposite. Dirty money is more likely to be laundered in high-tax countries because that is where the illegal activity is most likely to occur.”* according to the President of CFP, Andrew Quinlan.
In commenting on the Study, Author Daniel Mitchell of the Heritage Foundation said, *”This paper puts an end to the malicious stereotype that low-tax jurisdictions attract a disproportionate share of the world’s dirty money. It is time for politicians from high-tax countries to set aside their shameful demagoguery and put crime-fighting ahead of extra-territorial tax grabs.”*
The Study can be viewed on the Center’s web site (see link below) or under Special Reports on this site.