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Calls for reciprocity and a lack of participation from Asian-Pacific countries present significant challenges for the overreaching legislation.
April 1 -
Money was never meant to be a method of supranational identity tracking. Its use in that way could signal law enforcement desperation. When all other tactics fail, surveil the finances.
March 21
Like never before, financial privacy and safe havens are under attack the world over.
Banks and even entire jurisdictions are feverishly responding to increased government scrutiny from the world's monetary power centers in the name of exposing political corruption, combating terrorism, and preventing tax evasion.
Full financial transparency is the new mantra and it's being invoked in the name of social justice. The International Consortium of Investigative Journalists recently released
But why are private individuals lumped together with politicians who choose to be public figures representing the interests of their constituencies? Should private individuals and political figures be treated in the same manner regarding financial privacy?
Attorney Jenice Malecki of
Politicians who do not voluntarily submit to monitoring of their financial activities will not be trusted.
"Private individuals should have more privacy, as they have not placed themselves into the political arena. They have not agreed to give up their privacy," adds Malecki. However, she also concedes that when it comes to offshore numbered accounts, "it does seem that banking secrecy is eroding. Slowly, but surely, banks are releasing information for governmental investigations."
Violations of everything from know-your-customer rules to the
Almost simultaneously with the recent jihad against tax dodgers, decentralized cryptocurrencies such as
Think of bitcoin as your own personal financial safe haven or offshore bank. Previously, you had to board a jet or hire an attorney to set up legal entities and open bank accounts in private banking jurisdictions like Liechtenstein,
Simply by leveraging the distributed bitcoin
Today's best tax havens combine a no-tax jurisdiction with extreme banking secrecy enshrined in law where bank employees could face imprisonment for disclosing bank customer details to third parties or parties outside of the bank. Unsanctioned disclosure of bank account information in most tax havens is considered a criminal offense punishable by incarceration and monetary fines.
Sanctioned disclosure usually requires a recognized court order and typically hinges on the distinction between legal
The global trend persists toward cleaning up the high-risk and uncooperative countries on the intergovernmental
Future regulatory and confiscatory
"I think that determining 'legitimacy' is difficult," she says, "but as with political asylum, perhaps the financial world needs some financial asylum – which has very specific criteria, review and oversight. Without that, there is bound to be abuse" by governments.
Legitimacy is a politically charged term. One person's legitimacy may be another person's aggressive and unjustifiable overreach. Also, what a certain government sees as legitimate may be viewed in other parts of the world as a violation of fundamental human rights. This is clearest in authoritarian regimes that impoverish and imprison their political opponents for so-called crimes against the state.
It all depends of who is performing the oversight. I am not quite sure how any political oversight could function effectively while still protecting the financial privacy rights of individuals. Thankfully, it doesn't matter anymore.
Jon Matonis is an e-money researcher and crypto economist focused on expanding the circulation of nonpolitical digital currencies. His career has included senior posts at Sumitomo Bank, Visa, VeriSign, and Hushmail. Currently, he serves on the board of the Bitcoin Foundation. The views expressed are his own. Follow him on