The Secret Money Market: Inside the Dark World of Tax Evasion, Financial Fraud, Insider Trading, Money Laundering, and Capital Flight

Description

Few aspects of international finance are more fascinating than secrecy. Images flash through the mind of suitcases crammed with currency crossing national boundaries, of close-mouthed couriers slipping easily into and out of airports, hotels and banking offices, of expatriates living handsomely along palm-shaded beaches with no visible means of support, of churning money laundries and quiet slush funds. All find their parallels in the real world. But there are many other, less dramatic but much more important images as well: the tax evader skimming unreported income into an offshore account; the briber shuffling funds to the bribee; the violator of securities laws squirreling away illegal profits; the insecure politician or government official building a retirement fund abroad; the businessman fleeing his creditors; the husband fleeing his wife; the law-abiding citizen fleeing exposure to political or economic risk. All are players in the global financial secrecy game. Front cover Title page Copyright © 1990 Contents Tables, Figures and Exhibits Preface 1 The World of Secret Money The demand for financial secrecy The supply of financial secrecy The cost of secrecy The price of secrecy Market structure Plan of attack Note 2 What is Secret Money? The underground economy Internationalization of underground financial flows Secret money vehicles The problem of death Summary Notes 3 Demand for Secret Money: Capital Flight, Bribery and Corruption 4 Demand for Secret Money: Tax Evasion, Smuggling and Insider Trading Tax evasion Avoidance vs evasion Smuggling Violations of securities laws Notes 5 Demand for Secret Money: Fraud 6 Demand for Secret Money: Money laundering and undercover activities 7 Supply of Secret Money Elements of supply Patterns of secrecy supply Switzerland Notes 8 Global Secrecy Havens Caribbean and South Atlantic Channel Islands Gibraltar Luxembourg Panama Other havens United States Summary Notes 9 Combating International Financial Secrecy: Initiatives 10 Combating International Financial Secrecy; Patterns 11 Consequences Economic effects Political effects Social effects Personal effects Summary Notes 12 The Outlook Notes Annex 1. Theory of International Financial Secrecy Annex 2. Catalog of US Cases Involving Bank or Commercial Secrecy References About the author Back Cover