Obama faces criticism as US state tops secrecy table
Delaware named as world's most secret financial location
http://www.guardian.co.uk/business/2009/no... Delaware in the US is officially the world's most secret financial location. The finding will embarrass President Barack Obama as the Stop Tax Haven Abuse Bill he supports comes before Congress this week.
In the first ever detailed ranking of 60 of the world's financial hubs, published today, Delaware was found wanting in 11 out of 12 secrecy indicators. London was also ranked in the top five most secretive jurisdictions.
The east coast state of Delaware, home to half of all America's quoted companies, fails to place on public record details of trusts, company accounts and, crucially, the identity of beneficial owners – the people who receive the profits. It also allows companies to relocate to other countries, leaving minimal trace.
The opaque nature of Delaware is seen as America's weak link in its fight against tax evasion, the financing of terrorism and drug money laundering. Both the FBI and the Financial Action Task Force, the high-level international body set up to combat money laundering and terrorist finance, have repeatedly expressed concern at the way some US companies use the state as a base from which to operate under their radar.
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Delaware's assistant secretary of state, Rick Geisenberger, told the Observer that companies did not choose the state for secrecy but for the sophistication of its judicial system. He admitted that Delaware was under pressure to amend beneficial ownership disclosure laws.
