Transparency missing under the EU Christmas tree
BRUSSELS, 20 DECEMBER 2016. EU Member states today rejected the European Commission’s proposal to make information about who owns and controls EU companies and trusts public. Despite mounting concern from the public, fuelled by recent scandals such as the Panama Papers and the urgency to stop terrorist financing, EU member states have missed an opportunity to demonstrate they are committed to taking concrete action in the fight against corruption.
Emily Wigens, interim Brussels Director at ONE, said:
“More than a trillion dollars is siphoned out of developing countries every year due to money-laundering, shady deals and illegal tax evasion and the Panama Papers showed how anonymous shell companies can be easily used to launder money. It is therefore disappointing that EU member states have not taken this opportunity to implement critical action in the fight against corruption. Instead, they sought to defend the status quo by restricting access to information on company and trust ownership to those with a ‘legitimate interest’.
Only full transparency of who owns and operates companies and trusts can allow citizens and journalists to follow the money and ensure anonymous shell companies are not used to launder much-needed funds for the fight against extreme poverty. If these funds stayed in developing countries a portion could be taxed and invested in providing basic health care and education to the poorest communities.
Several member states are already committed to making beneficial ownership information public and governments around the world, including in Nigeria and Afghanistan, are looking to follow suit. Publicly accessible registers are on course to become a global transparency standard – the EU should get on board rather than get left behind. It is now up to the European Parliament to agree enhanced transparency measures for companies and trusts and press member states to make progress in this area.”
Notes to editors:
- Contact, information & interviews – Andrea Ghianda // [email protected] // +32 (0)2 300 89 42 // +32 (0)471 89 64 22
Money laundering and terrorist financing: Council agrees its negotiating stance. Read more
European Commission’s proposal amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and amending Directive 2009/101/EC. Read more
ABOUT ONE: ONE is an international campaigning and advocacy organization of more than 7 million people taking action to end extreme poverty and preventable disease, particularly in Africa. Co-founded by Bono, ONE raises public awareness and works with political leaders to combat AIDS and preventable diseases, increase investments in agriculture and nutrition, and demand greater transparency, so governments are accountable to their citizens.