In an explosive new development, the White House announced on May 5, 2016 that President Obama has signed executive orders to attack tax evasion, money laundering and corruption. The executive orders focus is on increasing transparency regulations as a tool to flush offshore tax abuses into the public view and subject them to both criminal investigation and prosecution. The key executive orders:
1) Immediate Executive Action to combat tax evasion/money laundering & terrorist financing by imposing tighter transparency rules on ownership of assets/transfer of funds;
2) New Treasury rules close a loophole allowing foreigners to hide financial activity behind anonymous US entities;
3) Stricter “customer due diligence” rules for banks handling money on behalf of clients.
President Obama’s Executive Orders are in response to the Panama Papers disclosure (i.e. millions of documents revealing the use of anonymous shell companies for tax evasion, bribery, corruption, terrorist financing and money laundering). As stated by President Obama: “There is no doubt that the problem of global tax avoidance generally is a huge problem. We need to make global tax avoidance illegal.”
As stated by US Treasury Secretary Jack Lew: “The US has long focused on countering money laundering and corruption, cracking down on tax evasion and hindering those looking to circumvent our sanctions…actions today increase transparency and prevent abusive conduct.”
See UK Guardian 5/5/16 article “Panama Papers: US Launches Crackdown on International Tax Evasion“