John Kerry is at anti-corruption summit in London, dealing with issues like eliminating tax havens

[karynnj]

Last week, Obama put out a statement calling for changes to end secret tax haven accounts in the United States. By itself, this is a big deal even though it is not the first US effort against tax havens. In 2010, Baucus/Kerry wrote an amendment that made it harder to move money into off shore tax havens. The likely revenue increase from that balanced costs in a jobs bill.

However, this is happening at the beginning of what appears to be a huge international anti corruption effort taking place now in London, where Secretary Kerry is representing the US. The goal is making tax havens unacceptable. This is another issue where Obama could not have asked had a better person to lead internationally on this issue than the man who took on BCCI. Secretary Kerry described both Obama's action and the international goal in London.

And we are going to ourselves – President Obama just announced – all 50 states, legislation will be put in place to require transparency with respect to businesses that are registered there. We will in addition engage in additional efforts which were already – we’re going to put $70 million into additional integrity initiative to help with local police training in order to help provide additional ability for digital – for internet transmission of payments, which reduces the opportunity for bribery and graft. And there are many different things that we can do technologically to improve this.

But here’s the most important thing that I think ought to come out of today, Mr. Prime Minister, and again, it takes courage to stand up, because in the beginning of this process there’ll be some outlier nations. They’ll say, “Wow, this is a great advantage. They’re going to tighten up their banking system. It’s an opportunity for us to proffer easier terms and we’ll be” – we have to say no safe harbor anywhere. We have to get the global community to come together and have no impunity to corruption. And the minute people begin to feel that enforcement and a broad standard of application, watch how rapidly the standards change. It’ll – you’ll be amazed at how quick this can happen.

http://www.state.gov/secretary/remarks/2016/05/257130.htm

It will be a huge thing if the international community is able to eliminate ALL tax havens. Back in 2008, I listened to a Finance committee hearing on the Cayman Islands shelters. One person who testified was Jack Blum, who had been the chief investigator for Kerry for the BCCI investigations. One key takeaway was that it would take an international effort to end this.
http://www.finance.senate.gov/hearings/-the-cayman-islands-and-offshore-tax-issues

I do not know the genesis of this anticorruption effort, but various foreign ministers, including Kerry, spoke of anticorruption as a major problem at Davos earlier this year, while not speaking of tax havens specifically. Clearly the Panama Papers added to outrage. Here is a letter from 300 economists calling for ending the tax havens - http://abcnews.go.com/International/300-economists-sign-open-letter-offshore-tax-havens/story?id=38980820

Before leaving for the summit, Kerry wrote this Oped - http://www.state.gov/secretary/remarks/2016/05/257175.htm

He also took the opportunity to speak to students at Oxford. The call for activism on this and other things reminds me of all the college graduations speeches he has given over the years. http://www.state.gov/secretary/remarks/2016/05/257109.htm

But, the time in Oxford was not all just inspiring young students, but when he said near the end that he was soon to have a beer - he was not joking. He joined US Marshall and Rhodes scholars for a beer at Kings Arms in Oxford. (picture rich UPI article - http://www.upi.com/Top_News/World/Photos/John-Kerry-pulls-pints-at-The-Kings-Arms-in-Oxford/fp/10157/ )