While addressing the Financial Accountability, Transparency, and Integrity (FACTI) on the sidelines of the 75th virtual session of the United Nations General Assembly, Prime Minister Imran Khan has proposed a 9-point action plan to curb the flow of money laundering from developing countries.
PM Khan revealed that more than $7 trillion is transferred out of developing countries through illegal channels each year, adding that these countries lose around $500 to $600 billion annually on account of tax evasion.
$7 trillion in stolen assets is parked in safe tax haven destinations all over the world.
The premier stressed upon the meeting participants to put an end to the bleeding developing economies and strengthen international cooperation to hold the financial criminals accountable.
Here is the detailed 9-point agenda tabled by PM Imran during the meeting of FACTI.
- Tax haven countries must immediately repatriate the stolen assets to developing countries.
- They must enforce criminal and monetary penalties on their financial institutions involved in receiving and utilizing the dirty money.
- They must regulate and monitor the accountants, lawyers, and other intermediaries serving as facilitators for transferring the dirty money from developing countries.
- Tax haven countries must disclose the beneficial ownership of foreign companies when any country makes an official request.
- A global minimum corporate tax must be introduced to prevent multinational companies from tax evasion by profit shifting to low tax countries.
- Revenue generated through digital transactions should be taxed at origin rather than anywhere else.
- Revise or repeal unequal investment treaties and introduce a fair arbitration system to address international investment disputes.
- All official and non-official organizations monitoring the flow of illegal money must include all developing countries.
- UN must notify a mechanism to supervise the work and ensure coherence and consistency in the functioning of these official and non-official bodies.