US "best place" to launder money, Treasury Secretary
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The US Treasury Secretary argues the US cannot be a credible voice for free and fair governments abroad if those within the country "break the law with impunity."
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US Treasury Secretary Janet Yellen
In an address during the White House Democracy Summit, US Treasury Secretary Janet Yellen said the United States may in fact be the best place to hide and launder money. The summit is convened by Biden with the goal of "rallying the nations of the world against the forces of authoritarianism."
She added that the US cannot be a "credible" voice for promoting anti-democracy abroad if it fails to address corruption within its borders.
“If we want free institutions to thrive the world over, then first, we must model what they look like at home.
"There are far too many financial shadows in America that give corruption cover."
Yellen challenged the notion that countries with histories of "loose and secretive financial laws" are the prime havens for illegal activity or corruption.
According to the secretary, “there’s a good argument that, right now, the best place to hide and launder ill-gotten gains is actually the United States.”
The reason, according to Yellen, is the US' prominent presence in the global market, combined with loose regulations.
Days ago, the Treasury introduced new regulations that require shell companies to supply the department with specific details of persons managing the company, in an effort to make it harder for criminals who use shell companies to hide illegal money.
Money laundromats
The Treasury Secretary suggested that anti-laundering efforts may also be implemented in the real-estate sector, requiring the clear identification of anyone buying real-estate in cash.
“Sometimes the only thing these luxury properties are home to are ill-gotten gains -- they’re money laundromats on the 81st floor,” Yellen said.
The secretary took a hit at the faulty tax program as well, commenting on how the highest-paid individuals and largest corporations are the ones who get away with fraud the easiest.
According to the Treasury, tax fraud cost the country $600 billion in lost revenue last year.
