For decades, offshore financial centres have offered legitimate international financial services. However, secrecy mechanisms have also been exploited by criminal organizations seeking to distance illicit profits from the crimes that generated them.
Human trafficking profits, corruption proceeds, forced labour revenues and environmental crimes frequently pass through complex corporate structures established across multiple jurisdictions before re-entering the legitimate economy.
The challenge is not that offshore centres are inherently unlawful. The challenge lies in identifying beneficial ownership, improving transparency and ensuring effective international cooperation. Every improvement in beneficial ownership transparency reduces opportunities to conceal assets linked to serious crimes.
Financial transparency therefore becomes a human rights issue.