May, 06 2016, 04:00pm EDT
Global Witness on Panama Papers Impact, Steps Taken by U.S. Government to Address Anonymous Companies, Need For Comprehensive Beneficial Ownership Legislation
On Eve of Panama Papers Searchable Database Release, U.S. Admin Actions Display a New Sense of Urgency
WASHINGTON
The Panama Papers exposed the dark world of tax havens, anonymous shell companies,and the various facilitators - attorneys, incorporation agents, and others - who love them. Yesterday, The Treasury Department finalized a long-awaited rule requiring greater due diligence requirements by banks. Treasury announced a plan for new draft legislation specifically to increase transparency of the ultimate owners of American companies and to strengthen the U.S. anti-money laundering framework. While we are glad the Obama Administration clearly recognizes the seriousness of the problems here and wants to take action to address them, the fundamental question is whether their proposals will actually do the job. There remains a dire need to institute strong transparency measures that will help end the crime and corruption facilitated by these instruments of secrecy and deception.
We've seen swift response in other countries in response to the scandals laid bare by this historic leak.Government officials have resigned, others are under investigations, and still others have announced actions they plan to take to address this.
We have initially reviewed the rule and proposed legislation to see if they include the core elements needed to address this urgent problem. These include:
- Global Witness believes that in order for banks to conduct due diligence to effectively prevent dirty money flowing through their accounts via anonymous companies, and for law enforcement and others to be able to determine the real owners of companies that may be involved in corrupt or criminal activity, they must have accurate, complete and timely information about those companies' owners.
- The definition of a company's beneficial owner or owners must include a robust definition that includes both the concept of 'ownership' as well as 'control' to guard against bad actors using proxies to conduct business on their behalf. The threshold for disclosure ought to be low enough to cover most business activity and shouldn't provide an easy blueprint for money launderers to evade new requirements.
- The information should be collected at the right times - both when the company is first formed and when the ownership changes.
- Lastly, the information should be accessible to those who need it most; at a minimum there needs to be a clear mechanism for law enforcement to gain access to this information in the appropriate course of an investigation.
Unfortunately an initial analysis of Treasury's new rule indicates that it falls far short of this mark. For example, under the new rule, the threshold for reporting ownership information is 25%, and entities reporting beneficial ownership information to banks can list a senior manager - not an owner - as the primary name on the disclosure form. This means that it is possible to comply with the regulation without actually naming a beneficial owner. While ultimately it may be that the rule creates some forward momentum, the weaknesses in this rule represent a missed opportunity by the Administration to get the details right the first time.
Global Witness has reviewed a draft of the proposed legislation and based on that information, it seems unlikely the Administration's proposed bill will meet this test.If it doesn't, the Administration risks muddying the waters by offering half-measures, which could undercut more comprehensive solutions, put the U.S. out of step with the rest of the world, and increase our position as a haven for dirty money.
Global Witness continues to support stronger due diligence requirements for banks and other players in the financial system in order to prevent the U.S. from becoming a hub for the proceeds of corrupt and criminal funds generated at home and abroad. We continue to support the Incorporation Transparency and Law Enforcement Assistance Act (S. 2489/H.R. 4450) bipartisan legislation introduced in Congress by Senators Whitehouse (D-RI) and Feinstein (D-CA) and Representatives Carolyn Maloney (D-NY) and Peter King (R-NY).
And, we hope that the Administration will be willing to work with civil society and allies in Congress who have championed this issue for years to pursue meaningful and effective legislation to tackle anonymous companies that will truly address this problem in the years to come.
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On Kent State Massacre Anniversary, Progressives Decry Repression of Student Protests
"The militarized repression of young people speaking out against a terrible war was shameful then and it's shameful now," said one state lawmaker.
May 04, 2024
As U.S. Republicans push for the deployment of National Guard troops to quell nationwide student demonstrations against the Gaza genocide, progressive lawmakers marked the anniversary of the 1970 Kent State Massacre by condemning police repression of peaceful protesters and reaffirming the power of dissent.
"On the 54th anniversary of the Kent State Massacre, students across our country are being brutalized for standing up to endless war," Congresswoman Cori Bush (D-Mo.) said on social media. "Our country must learn to actually uphold the rights of free speech and assembly upon which it was founded."
Fellow "Squad" member Rep. Ilhan Omar (D-Minn.) said that "54 years ago, the Ohio National Guard opened fire on unarmed students at Kent State."
"Students have a right to speak out, organize, and protest systemic wrongs," she added. "We can't silence those expressing dissent, no matter how uncomfortable their protests may be to those in power."
On May 4, 1970, 28 Ohio National Guard troops fired 67 live rounds into a crowd of unarmed Kent State students rallying against the expansion of the U.S.-led war in Vietnam into Cambodia. They murdered students Allison Krause, Jeffrey Glenn Miller, Sandra Lee Scheuer, and William Knox Schroeder—all aged 19 or 20. Nine other students were wounded, including one who was permanently paralyzed.
"The militarized repression of young people speaking out against a terrible war was shameful then and it's shameful now," New York state Assemblywoman Emily Gallagher (D-50) said on Saturday.
Protests against Israel's assault on Gaza—which according to Palestinian and international officials has killed, maimed, or left missing more than 123,000 Gazans—have spread to dozens of campuses across the U.S. and around the world. Police have been called in to break up protest encampments at numerous schools. Hundreds of students, faculty, and journalists have been arrested, sometimes violently.
At the University of California, Los Angeles (UCLA), police stood by this week as a pro-Israel mob attacked a campus protest encampment before officers arrested peaceful protesters and supporters.
As law enforcement officials have tried to justify the crackdown by claiming "outside agitators" are behind the protests, some observers noted historical parallels.
"Watching what is happening at UCLA," Virginia state Sen. Mamie Locke (D-2) said on social media. "Old enough to remember Kent State, Jackson State, South Carolina State, and the dog whistles of 'law and order,' 'outside agitators.' So reminiscent of 1968."
On February 8, 1968, police shot 31 students—most of them in the back—at a protest against Jim Crow segregation at South Carolina State University in Orangeburg, murdering three young Black men: Samuel Hammond Jr., Delano Middleton, and Henry Smith.
Eleven days after Kent State, police opened fire on a crowd of Black students protesting the bombing of Cambodia at Jackson State College in Jackson, Mississippi, killing Phillip Lafayette Gibbs and James Earl Green and injuring 12 others.
"Our institutions must learn from these past mistakes to not use militarized responses against unarmed, peaceful student protesters by calling in the National Guard, bringing in state troopers, or deploying police in riot gear," Laurel Krause, the sister of slain Kent State protester Allison Krause, said in a statement marking the ignominious anniversary.
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While U.N. agencies have warned since March that famine was imminent in Gaza, McCain's remarks—which came during an interview with Kristen Welker that is scheduled to air on Sunday's edition of NBC News' "Meet the Press"—make her the most high-profile international official to date to publicly acknowledge a state of famine in parts of the Palestinian territory.
"It's horror," said McCain, who is American. "There is famine—full-blown famine—in the north, and it's moving its way south."
UN World Food Program @WFPChief: “There is famine — full-blown famine — in the north of Gaza, and it’s moving its way south.”
pic.twitter.com/eyk0OeOEzr
— Waleed Shahid 🪬 (@_waleedshahid) May 4, 2024
McCain's remarks come as hundreds of thousands of Gazans are on the brink of starvation. Dozens of Palestinians—the vast majority of them children and infants—have already died of malnutrition and dehydration in northern Gaza.
According to Palestinian and international officials, Israel's 211-day assault on Gaza—which many experts including Israelis call genocidal—has killed or maimed more than 123,000 Palestinians since the Hamas-led October 7 attacks, including an estimated 11,000 people who are believed to be dead and buried beneath the ruins of the hundreds of thousands of destroyed or damaged homes and other buildings.
In addition to not allowing adequate humanitarian aid into Gaza, Israeli forces have also repeatedly attacked both aid workers and desperate civilians trying to access the lifesaving provisions.
"What we are asking for and what we continually ask for is a cease-fire and the ability to have unfettered access, to get in safe through the various ports and gate crossings," McCain said during the interview.
On Saturday, Hamas spokesperson Osman Hamdan said there have been "some forward steps" toward a cease-fire agreement during negotiations in Egypt. Egyptian mediators proposed a six-week cessation of hostilities, the release of an unspecified number of Israeli and international hostages, and a partial withdrawal of Israeli forces from Gaza.
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"This is not about Israel, Palestine, or Gaza. This is old-fashioned American racism and misogyny," said one observer. "These are the types of young white men who will grow up to be Republican governors, senators, and members of Congress."
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Republican Georgia Congressman Mike Collins came under fire Friday over a social media post applauding video of white University of Mississippi students racially abusing a Black woman participating in a campus protest for Palestine.
Collins posted the video—in which numerous people can be heard grunting like apes and one young man is seen jumping up and down like a monkey in front of the Black woman—with the caption, "Ole Miss taking care of business."
Collins—or whoever's in charge of his social media accounts—sparred with Black leaders who called out his racism. When former Democratic Ohio state senator Nina Turner said the video showed "anti-Blackness," the congressman shot back, "*Anti-terroristness."
When Rep. Jamaal Bowman (D-N.Y.) accused Collins of "fueling white supremacy," the Republican retorted, "Don't take down any more signs at our workplace, please" along with a photo of the Democrat triggering a fire alarm in a House of Representatives office building last year.
Around 30 protesters were rallying in support of Palestine in the Ole Miss Quad when counter-protesters gathered near the demonstrators. Some booed and chanted, "We want Trump!" Others singled out the Black woman—who NBC Newssaid is a graduate student at the school—chanting "Lizzo, Lizzo, Lizzo," "take a shower," "your nose is huge," "fuck you, fat bitch," and "lock her up!"
The counter-protesters also sang the "Star-Spangled Banner." Republican Mississippi Gov. Tate Reeves shared a separate video of the singing students on social media, captioning his post, "Warms my heart" and "I love Mississippi."
No racist language can be heard in the video shared by Reeves.
The Daily Mississippianreports the demonstrators were escorted off the Quad after counter-protesters threw water bottles at them.
Collins is no stranger to accusations of racism. Earlier this year, he suggested murdering migrants by throwing them from helicopters into the sea, in the manner of U.S.-backed South American dictators in the 1970s.
He also
introduced the Restricting Administration Zealots from Obliging Raiders (RAZOR) Act, which would ban the federal government from removing or altering "any state-constructed barriers installed to mitigate illegal immigration," such as the razor buoys installed in the Rio Grande by Republican Texas Gov. Greg Abbott.
Collins was also
accused of antisemitism after he amplified a social media post by an avowed neo-Nazi targeting a Washington Post reporter for being Jewish.
Ole Miss said Friday that "statements were made at the demonstration on our campus Thursday that were offensive and inappropriate."
"We cannot comment specifically about that video, but the university is looking into reports about specific actions," the school added. "Any actions that violate university policy will be met with appropriate action."
The Ole Miss incident comes amid rapidly spreading campus protests across the U.S. and around the world in response to Israel's genocidal assault on Gaza, which has killed, maimed, or left missing around 5% of the embattled strip's 2.3 million people, most of them civilians, while forcibly displacing nearly 9 in 10 people and driving hundreds of thousands to the brink of starvation.
While numerous Ole Miss students said they did not understand what the pro-Palestine protesters hoped to accomplish, others voiced support for the demonstrators—and for Palestine.
"As we've seen throughout history, time and time again, the student movement is never wrong. Time and time again, anytime there's a student protest, and you're against it, you're on the wrong side of history," Xavier Black, a junior majoring in international studies, told
The Daily Mississippian. "So I would like to be on the right side."
One Palestinian American Ole Miss student was teary-eyed as she thanked the protesters.
"Hey guys, I know that what just happened was really intimidating, and it was a little scary, but I just want to say I'm so proud of you guys," the student—who gave only her first name, Jana—said,
according toMississippi Today. "This wasn't going to happen... without all of you guys. Palestine was being heard. And I just want to thank you guys so much."
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