British overseas territories are “world leading enablers of tax dodging”

Untold billions in dirty wealth are still hidden in secretive offshore havens, our new research with the UK Anti-Corruption Coalition shows.

Almost all of Britain’s Crown Dependencies and Overseas Territories (CDOTs) are still very far from delivering on a years-old promise to clamp down on financial secrecy, according to the report.

Just 8% of CDOTs analysed – one territory – has made their register public.

Public registers of this kind make it much easier for key democratic stakeholders like the public, civil society, and journalists to see who owns shell companies, and to “follow the money”.

In short, this means the vast combined offshore wealth of gangsters, tax dodgers, corrupt politicians, warlords and oligarchs from across the globe can still be hidden from scrutiny in shell companies in at least 12 jurisdictions.

The report found that Gibraltar is the only one out of 13 jurisdictions reviewed that’s created a publicly accessible register of company ownership as agreed.

While most CDOTs have now pledged to make at least some progress during 2024, there is as yet no stated timeframe from Bermuda or the British Virgin Islands (BVI).

Recent polling by the UK Anti-Corruption Coalition and Survation found 72% of the British public think Britain should take more responsibility to work with CDOTs to tackle money laundering and tax evasion.

“Tax abuse is a scourge that robs governments of vital revenues, citizens of decent public services and small businesses of investment,” Rachael Henry, Head of Advocacy and Policy at Tax Justice UK said.

“British Crown Dependencies and Overseas Territories are world leading enablers of tax dodging, sitting at the heart of a web of financial secrecy which allows for criminality,” Henry added.

“Despite previous commitments to transparency, there hasn’t been enough progress. The UK government needs to acknowledge its presiding role in international tax abuse and work with territories like the British Virgin Islands and Bermuda to put an end to mechanisms that facilitate this behaviour.”

> Read the report in full here.