G7 financial leaders pledge to promote growth and equality and fight financial crime
The G7 Finance Ministers and Central Bank Governors' meeting in Bari, Italy (11-13 May) ended with the adoption of the Joint Communiqué and of three documents.
Global recovery is gaining momentum, yet growth remains moderate and GDP is still below potential in many countries, with the balance of risks tilted to the downside. At the same time, longer-term potential growth rates also remain subdued. Against this backdrop, leaders at the G& meeting reiterate their commitment to international economic and financial cooperation and remain determined to use all policy tools—monetary, fiscal and structural— both individually and collectively to achieve the goal of strong, sustainable, balanced and inclusive growth.
The vow to adopt a holistic approach to fighting tax and financial crime based on effective interagency and international co-operation, especially through improved access to and effective exchange of information, with consideration of domestic circumstances. Financial leaders pledge to continue to work to ensure access to beneficial ownership information for tax authorities, financial intelligence units and law enforcement agencies, and welcome the work by the FATF and the Global Forum on Transparency and Exchange of Information for Tax Purposes on reinforcing inter-agency and international cooperation, in particular on beneficial ownership information.
The meeting has also undertaken to ask the OECD to start discussing possible ways to address arrangements designed to circumvent reporting under the Common Reporting Standard or aimed at providing beneficial owners with the shelter of non-transparent structures, considering also model mandatory disclosure rules inspired by the approach taken for avoidance arrangements outlined within the BEPS Action 12 Report, and to report back to the Group of Seven by their next meeting.
Based upon information provided by G7 countries on money and value transfer services, improvements should be made as to the collection of updated information on entities acting as agents for a principal, as well as exchange of supervisory information. G7 Countries should improve the ability of supervisors and/or MVTS principals to maintain upda