Introduction
Financial crimes are growing in sophistication and often operate across international boundaries. Criminals accumulate significant sums of money by committing crimes such as drug trafficking, investment fraud, extortion, corruption, embezzlement and tax fraud. Tax administrators are increasingly recognising that they can play an important role in
detecting and deterring crimes such as corruption and money laundering, and at the same time tackle tax crimes. Tax administrations are well placed to play a greater role in uncovering the financial traces left behind by criminals through co-operation with their international counterparts as well as domestic and foreign law enforcement agencies.
In order to strengthen international co-operation, the OECD has advocated greater co-operation and better information exchange between tax and law enforcement agencies involved in the fight against financial crimes, both domestically and internationally. The OECD Council approved a “Recommendation on Tax Measures for Further Combating Bribery of Foreign Public Officials in International Business Transactions” in 20091, and a “Recommendation to Facilitate Cooperation between Tax and Other Law Enforcement Authorities to Combat Serious Crimes” in October 2010.2 Along with other OECD bodies, the Task Force on Tax Crimes and Other Crimes (TFTC) monitors and promotes both Recommendations.
Improving the flow of information between agencies within a country, including the tax administration, anti-money laundering authorities, and other law enforcement agencies, is a current issue for many countries and is a topic currently being addressed by the TFTC. At the same time, removing the barriers to cross-border information exchange
is critical for dealing with international criminal activity. Tax administrators and law enforcement agencies are reviewing and improving their strategies, structures and processes for enhancing co-operation in tackling all serious crimes including tax evasion, corruption, organised crime, and money laundering.
This note aims to catalogue the main international co-operation instruments which are available to tax authorities, anti-money laundering authorities and other law enforcement authorities. It looks at international agreements permitting the exchange of information and other forms of international co-operation. After describing the different agencies involved in the fight against financial crimes, it provides an overview of the instruments available and summarises current initiatives to improve domestic inter-agency co-operation and international co-operation between counterpart agencies.
The note contains a catalogue describing the features of different instruments for international co-operation in combating financial crimes. The catalogue contains general information in relation to each instrument, including the Parties to the instrument, its scope, the forms of co-operation it provides for, the authorities that can use the instrument, the conditions for requesting assistance and the grounds for denying assistance. It also contains details in relation to the use that the authorities can make of the information received, whether they can share such information with other local authorities or with foreign authorities, and the relationship between the instrument concerned and other instruments.
Detailed report link: click here
OECD Press release link (Tax: Joining forces to fight financial crime and illicit activities): click here