Flawed: Cayman Finance Challenges Credibility Of Tax Justice Network’s Biannual Financial Secrecy Index
Cayman Finance has today released a new study that critically assesses the methodology and data used to assess the Cayman Islands in Tax Justice Network’s (TJN) ‘Financial Secrecy Index’ (FSI). Significant flaws in TJN’s choice of data and scoring have rendered the 2020 report an unreliable source for accurate information about the Cayman Islands financial services industry. Future TJN reports’ will also lack credibility without critical changes in the application of their own methodology – and Cayman Finance will continue to scrutinise and analyse future editions to ensure continued accountability.
Ahead of the anticipated publication of the other TJN reports this fall, Cayman Finance commissioned the review to analyse the calculations of the previous report published in 2020, which incorrectly placed the Cayman Islands first globally in its secrecy ranking. This analysis, by accomplished economist Julian Morris, identified significant flaws in how TJN applied its own original methodology, which resulted in distorted final rankings, creating biased and misleading conclusions.
“The Cayman Islands has demonstrated its commitment to the common fight for effective global transparency and international cooperation standards. However, a report on transparency needs to be transparent itself and Tax Justice Network’s 2020 Financial Secrecy Index’s failure to meet that standard compromises the credibility of its conclusions,” said Jude Scott, the CEO of Cayman Finance. “TJN used estimates and unqualified assumptions when accurate data was publicly available. Without substantial changes to TJN’s application of their own methodology in future reports, the credibility of those assessments as independent resources used by other organisations will be lost.”
Cayman Finance’s analysis found that TJN’s 2020 Financial Secrecy Index had:
Used inaccurate methodology – the FSI report failed to follow its own methodology when calculating a Global Scale Weight (GSW) – the primary factor for determining a jurisdiction’s score -- for Cayman. TJN chose to use portfolio liabilities instead of publicly-available data for financial services exports. As a result, TJN’s estimate of GSW for Cayman was nearly 9 times what it should have been. If TJN had accurately applied their own methodology on just this point, Cayman would already drop down to 6th on the FSI.
Used biased criteria – the FSI report used biased Key Financial Secrecy Indicators, thereby skewing Cayman’s score further. For example, the FSI gives Cayman a 100% secrecy score for lack of public access to civil tax proceedings even though Cayman has no such proceedings because it does not have corporate or personal income tax. If these biased indicators were removed or more accurately scored along with a correct GSW calculation, Cayman would drop down even further on the FSI list to 34th position.
Julian Morris, leading economist and author of the Cayman Finance report, explains further: “While the FSI is clearly an ambitious attempt to identify jurisdictions that contribute to illicit financial flows, inappropriate and statistically questionable use of its metrics undermine the integrity of their findings. Unless TJN makes significant changes in future reports—in particular, to use accurate data, to adjust or remove biased indicators, and to aggregate data using proper statistical methods --the FSI should not be taken seriously as an assessment of jurisdictions’ contributions to illicit financial flows.”
Scott concludes: “We are confident in the leadership the Cayman Islands Government and our financial services industry have shown in adopting global standards for transparency and tax information sharing. While fraud is a global issue that we all have a continued role in tackling, both the EU and the OECD have recently reviewed the Cayman Islands tax neutral regime and found it to be transparent, consistent with good tax governance principles and without the existence of harmful tax regimes. Those are the kinds of internationally-recognised assessments that should be considered when assessing the Cayman Islands.”
A ‘Review of TJN’s Financial Secrecy Index’ by Julian Morris, as well as analyses of other TJN reports, can be found at www.caymanfinance.ky.
About Cayman Finance:
Cayman Finance is the association of the financial services industry of the Cayman Islands, a premier global tax neutral financial hub efficiently connecting law abiding users and providers of investment capital and financing around the world. Cayman Finance represents first rate service providers within investment funds and asset management, banking, insurance, reinsurance, capital markets, and trusts sectors and world class fiduciary, legal, and public accounting service providers. Additionally, Cayman Finance represents 15 industry associations. Learn more at:www.caymanfinance.ky
About Jude Scott:
Jude Scott is a respected and recognised expert on global financial services and has served as CEO of Cayman Finance since 2014. He retired as an Audit Partner in 2008 after spending over 23 years with Ernst & Young and previously served as the Global CEO of Maples and Calder. Jude attained extensive experience within the Cayman Islands’ financial services industry, having served on various government and private sector committees, including: the Cayman Islands Financial Services Council; the Cayman Islands Society of Professional Accountants; the Education Council; the Insolvency Rules Committee; and the Stock Exchange.
About Julian Morris:
Julian Morris is an economist with over 25 years’ experience in think tanks and academia. A Senior Fellow at Reason Foundation, Senior Scholar at the International Center for Law and Economics, and Fellow of the Royal Society of Arts, he is the author of dozens of scholarly articles and the editor of several books. Julian’s work focuses on the role of political and legal institutions as they relate to entrepreneurship, innovation, and sustainable development. A graduate of Edinburgh University, Julian has Masters degrees from University College London and Cambridge University, and a law degree from the University of Westminster.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
+1 (345) 769-6200
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
SES-17 Successfully Launched on Ariane 524.10.2021 07:08:00 EEST | Press release
SES announced today that the SES-17 satellite was successfully launched into space onboard an Ariane 5 launcher operated by Arianespace from the Europe’s Spaceport in Kourou, French Guiana at 11:10 pm local time (02:10 am UTC). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211023005019/en/ SES-17 Successfully Launched on Ariane 5 (Photo: Business Wire) The multi-mission Ka-band satellite will provide comprehensive coverage across the Americas, the Caribbean and the Atlantic Ocean. From its orbital slot of 67.1 degrees West orbital slot, the very high throughput geostationary (GEO) satellite incorporating cutting-edge technologies is set to deliver the best connectivity experience for SES customers operating in the aeronautical, maritime, enterprise, and government markets. Built by Thales Alenia Space, SES-17 marks an important milestone in satellite technology as the first Ka-band geostationary satellite to embark a fully
Peru Holds a Ribbon Cutting Ceremony at Its Pavilion at Dubai Expo and Wins 4 World Travel Awards22.10.2021 20:15:00 EEST | Press release
The Dubai World Expo took place in an electrifying musical atmosphere where thousands of attendees were captivated by the variety of artistic, musical and cultural expressions that characterize the different regions of Peru. All this was part of the inauguration of the Peru Pavilion at the most important cultural event in the world. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211022005454/en/ Peru inaugurated its Pavilion at Expo 2020 Dubai and received four awards from the “Tourism Oscars.” (Photo: Business Wire) The Peru Pavilion was inaugurated by the Commissioner General for Peru at the Expo, Amora Carbajal, and Najeeb Mohammed Al-Ali, Executive Director of Expo 2020 Dubai, in front of official representatives from different country pavilions. “The purpose of the pavilion is to offer a complete learning experience about ancient Peruvian wisdom throughout the visit, communicating the importance of the heritage, biodive
Schlumberger Announces Third-Quarter 2021 Results22.10.2021 13:50:00 EEST | Press release
Schlumberger Limited (NYSE: SLB) today reported results for the third-quarter 2021. Third-Quarter Results (Stated in millions, except per share amounts) Three Months Ended Change Sept. 30, 2021 Jun. 30, 2021 Sept. 30, 2020 Sequential Year-on-year Revenue* $5,847 $5,634 $5,258 4% 11% Income (loss) before taxes - GAAP basis $691 $542 $(54) 28% n/m Net income (loss) - GAAP basis $550 $431 $(82) 28% n/m Diluted EPS (loss per share) - GAAP basis $0.39 $0.30 $(0.06) 30% n/m Adjusted EBITDA** $1,296 $1,198 $1,018 8% 27% Adjusted EBITDA margin** 22.2% 21.3% 19.4% 90 bps 280 bps Pretax segment operating income** $908 $807 $575 12% 58% Pretax segment operating margin** 15.5% 14.3% 10.9% 120 bps 460 bps Net income, excluding charges & credits** $514 $431 $228 19% 126% Diluted EPS, excluding charges & credits** $0.36 $0.30 $0.16 20% 125% Revenue by Geography International $4,675 $4,511 $4,210 4% 11% North America* 1,129 1,083 1,034 4% 9% Other 43 40 14 n/m n/m $5,847 $5,634 $5,258 4% 11% *Schlumbe
Disruptive.Asia: Huawei's Ryan Ding and Peng Song Discuss How Operators Can Leverage Connectivity to Unlock New Growth22.10.2021 13:30:00 EEST | Press release
Disruptive.Asia reported that Ryan Ding and Peng Song stressed the growing importance of connectivity in driving industry growth and generating value amid a rapidly evolving landscape at the 7th Ultra-Broadband Forum (UBBF 2021) in Dubai, which is jointly hosted by the UN Broadband Commission and Huawei. Ding, Executive Director of the Board and President of the Carrier Business Group, Huawei, said that connectivity has made it possible to innovate, especially in a digital age where increasing efficiency has become paramount. The pandemic has also ushered a paradigm shift in connectivity, as homes turned into multi-functional centers for education, work, and business. It became increasingly clear that connectivity not only drives digital economies forward but also maintains the functioning of society. Peng, President of the Global Carrier Marketing & Solution Sales Department, Huawei, said that looking at connectivity through Huawei's C.A.F (Coverage, Architecture and Fusion) model can
Suzano Brings Its Target for Capturing 40 Million Tons of Carbon From the Atmosphere Forward To 202522.10.2021 13:19:00 EEST | Press release
Suzano, the world's leading eucalyptus pulp producer and a global benchmark in the manufacture of bioproducts developed from eucalyptus, announces today that it has revised one of its 14 long-term goals – collectively known as Suzano’s “Commitments to Renewing Life”*. Suzano’s goal to remove 40 million tons of carbon from the air by 2030 has been brought forward by five years to 2025. With this revision, Suzano reinforces its capacity to make an even more positive contribution to the planet's climate by achieving net carbon removals from the atmosphere at a faster pace than previously expected. The new five-year target will be supported by the expansion of Suzano’s forest covering which will involve both an uplift in commercial planting operations and setting aside new designated conservation areas that were previously anthropized. Alongside these improvements, Suzano will maintain its focus on reducing carbon emissions across its own operations and supply chain and will continue to im
AntChain Launches Its First Security Chip and New Blockchain Platform Powered by Privacy Computing Technology22.10.2021 13:01:00 EEST | Press release
AntChain, the flagship technology brand of Ant Group, today unveiled two new products at the Apsara Conference 2021 in Hangzhou – the FAIR platform and the T1 security chip – to ensure the security and trustworthiness of data flows within blockchain networks. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211022005166/en/ Yan Ying, technical director of AntChain, unveiled the FAIR platform at the Apsara Conference on October 22, 2021. (Photo: Business Wire) Based on AntChain’s upgraded technical architecture, the FAIR platform natively integrates privacy-preserving computation (PPC) and blockchain technologies in a unified platform, unleashing the value of data flows over their entire lifecycle. FAIR is designed to address pain points in multi-party collaboration on data flows, which is increasingly common on the industrial internet. It replaces traditional “PPC plus blockchain” dual-system architecture, integrating the two
Total Telecom: Maximizing the Value of Connectivity22.10.2021 13:00:00 EEST | Press release
Total Telecom reported that i ndustry leaders gathered recently at Ultra-Broadband Forum 2021, organized by UN Broadband Commission and Huawei, held in Dubai to discuss building future-proof networks sustainably. Total Telecom thinks that the expectations from digital connectivity have been redefined in the last one year. From conducting financial transactions online to remote factory management, the digital way of life is becoming pervasive. "Connectivity reshaped how we live and work when the pandemic hit in 2020. Connectivity is more than an expansion of functions, it is an emotional bond. As long as there is connectivity, there is a bond. Where there is connectivity, there is innovation. It presents us with unlimited possibilities. I believe in our shared mission to create a connected world," says Ryan Ding, Executive Director of the Board, President of the Carrier BG, Huawei, in his inaugural address. The C.A.F (Coverage, Architecture and Fusion) model is emerging as a way for the
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom