Financial transparency remains top priority: G20 FMs
The G20 countries have reiterated the need to prioritise financial transparency and effective implementation of standards of transparency by all its member countries. This needs to be done to protect the integrity of the international financial system, and to prevent corruption, tax evasion, terrorist financing and money laundering. This was discussed in the G20 Finance Ministers and Central Bank Governors Meeting in Washington DC on Friday.
All countries and jurisdictions should fully implement the Financial Action Task Force (FATF) standards on transparency and beneficial ownership information for tackling tax evasion, terrorist financing and money laundering, the G20 Finance Ministers announced in an official communique released by the International Monetary Fund (IMF).
The IMF in its statement detailed that, “We ask the FATF and the Global Forum on Transparency and Exchange of Information for Tax Purposes, to make initial proposals by our October meeting, on ways to improve the implementation of the international standards on transparency, on the availability of beneficial ownership information, and its international exchange.”
It also said, “We ask the FATF to strengthen its work on identifying and tackling loopholes and deficiencies that remain in the financial system and ensure that the FATF standards are effective and comprehensive, and fully implemented. We call on the FATF-style regional bodies to be vigorous partners. We call on the IMF, Organisation for Economic Co-operation and Development (OECD), Federal Security Service (FSB), and the World Bank Group to support FATF in addressing the challenges,” it further stated.
On an affirming note the IMF declared, “We will resist all forms of protectionism. We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce policy uncertainty, minimize negative spill-overs and promote transparency. We have identified and agreed to the priority areas, based on which by July we will further develop and agree upon a set of guiding principles as a reference guide to national reform actions. We affirm the importance of monitoring and transparency of climate finance. We reaffirm our commitment to implementing the 2030 Agenda for Sustainable Development.”