Maldives Ranked as One of World’s Most Secretive Jurisdictions Amidst Financial Crimes Concerns
A new report by the Tax Justice Network has ranked the Maldives as one of the most secretive countries in the world, sparking concerns about its role in facilitating financial crimes. The country scored 94th out of 119 countries on the Financial Secrecy Index, which assesses a country’s laws and regulations regarding transparency, bank secrecy, and financial reporting.
Lack of Transparency
The report highlights the lack of progress in opening up the country’s financial system, with no public online access to information about:
- Bank secrecy
- Wealth registration
Furthermore, it notes that domestic and foreign tax evasion is not a criminal offence under anti-money laundering regulations.
Quote from Tax Justice Network Spokesman
“This is not an accident,” said a Tax Justice Network spokesman. “Countries that have the most secretive financial systems often have governments captured by those who want to hide their money flows - criminals, money launderers, tax dodgers, and others who engage in illicit finance.”
Allegations of Financial Wrongdoing
The Maldives has faced numerous allegations of financial wrongdoing, including a recent Al Jazeera expose titled ‘Stealing Paradise’, which revealed links between government officials and money laundering. The report featured confessions from associates of former Vice President Ahmed Adeeb about delivering stolen cash to President Abdulla Yameen.
Consequences for Citizens
The Tax Justice Network spokesman warned that the Maldives’ secrecy laws have severe consequences for its citizens:
- “When governments focus on helping thieves and money launderers, they lose focus on helping ordinary people.”
- “This can lead to inflation generated by questionable money flows, making it harder for ordinary people to afford basic necessities.”
Impact on International Reputation
The country’s international reputation is also at risk, making it harder for legitimate businesses in the Maldives to trade. The Tax Justice Network has called on the government to take immediate action to address these concerns and bring transparency to its financial system.
Recommendations
- The government should prioritize transparency and accountability in its financial system.
- Immediate measures should be taken to prevent money laundering and tax evasion.
- Public online access to information about bank secrecy and wealth registration should be provided.