Global economy severely affected by Tax abuse, money laundering, corruption, reveals UN Report

Global economy is plagued by tax abuse and fraud, money laundering and corruption, as revealed by a United Nations (UN Report).

According to a report submitted on the International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda (FACTI Panel), global economy is plagued by financial embezzlement, money laundering, tax fraud.

The report has been prepared by a high-level panel which was constituted by ormer presidents of the United Nations General Assembly and the UN Economic and Social Council (ECOSOC) and comprises of former heads of states, intellectuals, bank governors and other relevant individuals.

As per the report;

  • $500 billion losses to governments each year from profit-shifting enterprises.
  • $7 trillion in private wealth hidden in haven countries, with 10 per cent of world GDP held offshore.
  • Money laundering of around $1.6 trillion per year, or 2.7 per cent of global GDP (gross domestic product).

Furthermore, the report highlighted that the current global economic system is adding to woes of the world’s poor by deepening the social and material divide between the hierarchal divisions of the society.

In addition to it, the report stressed upon the fact that FinCen Files worth up to US$ 2 trillion reveal that some of the world’s prominent and major banks have facilitated criminals in money laundering.

The report had urged world leaders to develop and implement a comprehensive and thorough approach aimed at improving international tax cooperation.

It is to be noted that Prime Minster Imran Khan had also addressed the 15-member panel via video link.