Regulating Money Laundering and Tax Havens: The Role of Blacklisting

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Paper prepared for the European Consortium for Political Research (ECPR) conference; (Re)Regulation in

the Wake of Neoliberalism, Consequences of Three Decades of Privatization and Market Liberalization, Panel: Naming and Shaming, held at Utrecht University, June 5th – 7th, 2008

Prof. dr. Brigitte Unger* and Joras Ferwerda, MSc.**

 Abstract

Since ten years, and more so, since September 11, 2001, international organizations such as

the IMF,  OECD and  EU try to  combat  harmful tax competition,  money laundering  and terrorist financing. Blacklisting, the naming and shaming of uncooperative countries, was one of the strategies used from the very beginning of this new policy area. An analysis of the black listed countries over time shows, that the black lists got shorter and shorter over time. In 2006, Myanmar was the only country listed for money laundering, until it was finally also removed from the list.

 

The paper wants to explore a) the reasons for removing large countries and especially EU countries from the list b) the wanted and unwanted effects blacklisting had for the named and shamed countries and discusses c) whether this necessarily means the end of blacklisting. We want  to  show  d)  a  new  way  of  greylisting  which  might  be  more  compatible  with  the international diplomatic requirements. We developed a new indicator for rating countries with regard to cooperative behavior for tackling money laundering, which might also allow for

benchmarking, a concept probably more accepted within the EU than blacklisting.
Report location: here

Direct link to the report: here