Russia, Canada and U.S. lawmakers oppose a key requirement of David Cameron's initiative to force corporations to publicise their beneficial owners to crack down on corruption
LONDON (Thomson Reuters Foundation) – A key requirement of British prime minister David Cameron’s G8 transparency push is in danger of failing amidst opposition from Russia, Canada and U.S. lawmakers, The Observer reported.
Cameron has called for corporations to be forced to publicise the names of the beneficial owners - those who ultimately profit from the business - as a way of cracking down on shell companies that allow criminals, corrupt officials and tax evaders to set up anonymous bank accounts in which to hide their wealth.
The British government has prioritised the areas of tax, transparency and trade as it assumes the presidency of the Group of Eight rich industrialised countries, which meets in Northern Ireland next week.
Cameron’s goal is in jeopardy because of opposition from Russia, Canada and some U.S. lawmakers who believe that it could damage the interests of Delaware, a U.S. state known for its light corporate regulation, the newspaper said on Saturday.
The newspaper cited a 2011 study by the World Bank which analysed 213 grand corruption cases over the past 20 years and found that in 150 of those cases, a trust or shell company was used to hold or transfer the illicit funds.
"We are concerned not all countries are going to sign up," The Observer quoted Robert Palmer of campaign group Global Witness, as saying.
"This is about the world's biggest economies saying 'we are going to get our houses in order'," Palmer added.
Cameron has proposed two separate corporate transparency scenarios which he intends to put to his fellow G8 leaders. In one, the register of corporate beneficial owners would be made public and in the other, the register would only be available to the relevant authorities.
It is likely that if any deal is reached it will be a patchwork solution, with some G8 members agreeing to a public register, some to a private, and others resisting entirely, The Observer said.
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