CAPITALISM'S ACHILLES HEEL Dirty Money and How to

408 NOTES
43. Two “name and shame” efforts bear mentioning. In 2000, the Financial
Action Task Force named 15 “Non-Cooperative Countries and Territories,”
cited for failure to adopt FATF recommendations. Additions to
and removals from the list followed in subsequent years. Also in 2000
the OECD named 35 jurisdictions with harmful tax practices in a “List
of Uncooperative Tax Havens.” Thereafter, most of the named jurisdictions
gave commitment letters promising to clean up their respective
money-laundering and tax regimes. Both the FATF and OECD initiatives
largely faded after the World Bank and IMF sought a more “cooperative”
approach to problem jurisdictions, beginning in 2003. The
current position of western governments stresses information sharing in
money-laundering and tax evasion cases, while basic haven and secrecy
structures are allowed to continue.
44. Interview by the author with a French banker, Paris, France, not for
attribution.
45. Holman v Johnson, 98 Eng. Rep. 1120, 1121 (K.B. 1775).
46. William S. Dodge, “Breaking the Public Law Taboo,” Harvard International
Law Journal 43 (Winter 2002): 161, 220, 219, asks the question,
“Why do courts refuse to enforce foreign public law when they routinely
enforce foreign private law?” He concludes that “governments
would be better off if they could cooperate by enforcing each other’s
public laws,” and adds, “If one can justify courts maintaining the public
law taboo at all, it is only as a strategy for achieving more effective cooperation
through international agreements.”
47. U.S. General Accounting Office, International Taxation: Problems Persist
in Determining Tax Effects of Intercompany Prices, report to the
ranking minority member, Committee on Foreign Relations, U.S.
Senate (GAO/GGD-92-89), June 1992, 20.
48. U.S. General Accounting Office, Tax Administration: Foreign- and U.S.-
Controlled Corporations That Did Not Pay U.S. Income Taxes, 1989–95,
report to the Honorable Byron L. Dorgan, U.S. Senate (GAO/GGD-
99-39), March 1999, 4.
49. U.S. General Accounting Office, Tax Administration: Comparison of the
Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations,
1996–2000, report to congressional requesters (GAO-04-358), February
2004, 29.
50. Ibid.