The head of an international investigative firm, L. Burke Files, told Guardian Business that international financial watchdogs will not stop shifting the goal post on tax regulation and financial sector regulation until there is a “one-world regulatory regime and a one-world tax regime”.
Files said bodies like the Organization for Economic Co-operation and Development (OECD) and the European Union (EU) are using regulations that are designed to hurt small companies and in the case of The Bahamas, smaller economies.
“Regulation engenders the concentration of large, monopolistic companies around the world – the heavier the regulation the more you’ll build monopolies,” said Files.
He recently spoke at an advanced anti-money laundering seminar put on by the Preventative Measures Asset Protection and Prevention Management firm.
Files said international financial services regulators have to look at money laundering as a symptom of crime and crack down on the crime.
He said, however, that to protect itself from any negative reputation, there needs to be more investigations and audits specifically aimed at the ability to find money laundering. He added that banks also need to bolster their KYC (know your client) regimes.
“Some of the worst banks in the world in terms of knowing their clients are U.S. banks,” he said.
According to Files, current anti-money laundering laws from the OECD are not drafted to prevent crime, but to deal with what they view as harmful tax competition in international financial jurisdictionsto the general economy than they are doing at preventing crime or cleaning up after crime,” Files said.
He added that criminals are also ahead of the game when it comes to new laws being drafted to keep them out of it.
“Every time a new law is crafted the criminals are already ahead of it and have responded,” he said.
Education: Florida International University, BS in Journalism