Beautiful Virgin Islands

Tuesday, Jun 03, 2025

United Nations

UN Panel: The Global Financial System Needs Urgent Reform

The international financial system needs urgent reforms, as currently it enables illicit money flows and tax abuse, a high-level panel assembled by the United Nations concluded on Thursday, suggesting that tackling this issue is the world's best chance of improving its sustainable development goals.
The Financial Accountability, Transparency and Integrity Panel (FACTI) consists of former heads of state, other government officials, along with civil society leaders and academics who were appointed by the U.N. to find solutions to combat illicit financial flows.

In the wake of the FinCEN leaks, which uncovered over US$2 trillion in dirty money circulating the global economy, FACTI presented its own interim report and said its findings only reinforce the need for vast systemic changes.

The report estimates that between $500 to $600 billion is lost in corporate tax revenue each year due to tax avoidance by multinational firms.

It also says that an estimated $7 trillion in private wealth – or 10% of the world’s GDP– may be held in offshore financial assets, $20-$40 billion in bribes are received each year, and that money launderers move an estimated $1.6 trillion each year.

Dalia Grybauskaite, the former President of Lithuania, said that the report and the media coverage of the FinCEN leaks show that “we’re all being robbed, especially the world’s poor.”

She also argued that “too many banks are in cahoots and too many governments are stuck in the past.”

Munir Akram, the permanent representative of Pakistan to the United Nations, said the estimates from the report were “appalling.”

“We can’t afford these losses in the best of times, and we certainly can’t afford them now,” he said, alluding to the fact that many countries are now facing crippling budgetary burdens due to the coronavirus pandemic that only heightens the need to address policy solutions that would make meaningful changes to the international financial system.

While FACTI will produce a more concrete set of policy recommendations in its final report, to be published in February of 2021, panelists discussed certain proposals that would be necessary to combat illicit financial flows.

They argued that there must be more readily available and standardized beneficial ownership information, which would go a long way in helping authorities trace assets back to the individuals that are setting up offshore and anonymous assets to conceal criminal and illicit financial activity.

“If governments are serious about illicit flows, they will have to tackle anonymous ownership,” said FACTI panelist Gillian Dell, Head of Conventions Unit at Transparency International.

This was echoed by Che Sidanius, another member of the panel who works for Refinitiv, a company that provides market financial data globally.

“I really want to re-emphasize that the private sector really wants to engage with policymakers on this issue,” he said.

According to findings discussed at the conference, 90 percent of business leaders also approve of increased transparency regulations as long as all institutions are being held to the same standards. “I’m surprised the number is so low...I want to know the ten percent of individuals who wouldn’t be in favor of such measures,” Sidanius said.

Clarke Gascoigne, interim executive director of the Financial Accountability and Corporate Transparency (FACT) Coalition weighed in on the findings of the report and the media revelations this week, saying that both demonstrate that “the international community is failing to block criminals, tax cheats, and kleptocrats from exploiting the financial system.”

“World leaders must finally commit to combatting the secrecy and tax dodging that bankrupt public coffers, deepen global poverty, and undermine international security and public safety,” he said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×