Maldives Slips Down Global Financial Secrecy Scale as Bank Secrecy and Tax Evasion Concerns Grow

Financial Transparency Takes a Hit

The Maldives has dropped to 94th place on the global financial secrecy scale, ranking it among the most opaque nations in the world. The country’s score of 81 out of 100 reveals a significant increase in financial secrecy over the years, with the Maldives falling from 79th in 2013 and 61st in 2011.

Limited Presence, Significant Concerns

Although the Maldives accounts for less than 0.1 percent of the global market for offshore financial services, making it a relatively small player compared to other secretive financial jurisdictions like the US and Switzerland, its financial secrecy has raised concerns among anti-corruption advocates.

Concerning Aspects of Financial Regime

• Partial or no public online access to information about bank secrecy and wealth registration
• Domestic and foreign tax evasion is not criminalized under anti-money laundering regulations

Lack of Comprehensive AML/CFT Regulations

The report reveals that:

• Money laundering is only criminalized with respect to proceeds of offenses listed in the Drugs Act
• Terrorism financing is covered to a limited extent under the ‘aiding and abetting’ clause of the government’s terrorism legislation

This lack of comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regulations hinders the government’s ability to effectively combat financial crimes.

Data Cutoff and Future Developments

The data cutoff point for 2018 was September 30, 2017. The Financial Secrecy Index is published every two years, with scores weighted for size, taking into account the relative importance of each country’s economy to the global financial system.

Concerns about Commitment to Transparency and Accountability

The Maldives’ slide down the financial secrecy scale has sparked concerns about the country’s commitment to transparency and accountability. As the government continues to grapple with issues related to corruption and money laundering, it is essential that it takes concrete steps to improve its financial regulatory framework and increase transparency in its financial transactions.

Conclusion

It is imperative for the Maldives to address these concerns and take immediate action to strengthen its financial regulations and increase transparency. Only then can the country regain its position as a transparent and accountable nation, and work towards a more stable and secure financial future.