This week police chiefs, interior ministers,
international crime experts from Bulgaria, the rest of South
Eastern Europe and EU attended a conference at the Foreign Office
in London which heard Jack Straw and David Blunkett pledge
Britain's support for a new campaign against international crime in
South East Europe. International crime touches on all our
countries, whether they be EU Member states, Candidate countries,
Asian, African or American.
From the cocaine smuggled in from Colombia to the
gangs who transport people, drugs and cigarettes into Britain, the
front line of Britain's domestic security lies thousands of miles
from our shores. As usual it is the poor who suffer most from
global crime. Cocaine may be fashionable in the salons of well off
London districts but drug abuse in former mining villages and towns
of industrial England is devastating communities. Drug abuse is
also increasing in Bulgaria. But perhaps the worst abuse, which
demonstrates the pan-european nature of international crime, is
that of trading young, insecure women across Central and Eastern
Europe into the hands of the most ruthless sex industry exploiters
in Western Europe.
Bulgarian agencies cooperate closely with police in
Europe and the Americas. Such cooperation must continue, to help
strengthen the new armoury being developed to combat global crime.
Enhanced extradition procedures, confiscation of the proceeds of
crime, and a crackdown on the lawyers who protect international
criminals by abusing the legal systems of Europe and America are
all strategies we need to bolster. Such cooperation is expected of
all member states, and candidates are encouraged to play an active
role.
From an economic point of view, the unpalatable fact
is that crime pays. Money laundered from crime is estimated to
account for 2% to 5% of the global economy or about GBP 1 trillion
per year. That is larger than the value of the British economy.
Again, this is a worldwide problem. It involved many countries and
we must all work together in the battle to stop it. Both British
and, I know, American, officials have been working over the last
few years with the Bureau of Financial Investigation sharing
experience and best practice. But improving systems is not enough.
Results matter, and whether it is Britain, US or Bulgaria, we want
to see concrete cases of people apprehended for money laundering,
prosecuted and brought to justice.
The profitable conduits of global crime are eased by
one great secret left on earth that no one is prepared openly to
discuss. This is the money taboo - the deeply held belief that
ownership of money is no business of anyone other than the
owner.
The world's banks have stewardship of trillions of
dollars, euros, roubles and pounds but they guard information about
ownership of this money more jealously than any secret of state or
religion.
In the days of capital controls there were some fire
breaks but today 's post-national cyber economy allows money to be
stored or to flow without any public interest check or balance.
Owning land or owning shares provides wealth and
power but these ownerships are dwarfed by the ownership of money.
For centuries it has been accepted that ownership of land could not
be a secret matter.
From the Domesday Book to modern land registries,
ownership of land is in the public realm. So too, the modern market
economy cannot work if ownership of shares is a secret. The most
hard-edged market economies send people to prison for trying to
hide share ownership.
Britain's position is that all European states,
including those not in the EU, should exchange information about EU
citizens who have bank accounts in other countries for the purpose
of avoiding paying taxes. "Cherchez l'argent" will be the next cry
of those who want to make an open, international trading economy
work against the fears of the protectionists and the assaults of
globalisation's criminal class.
The terrorist, drug-runner, international criminal,
tax-dodger and even the low-grade smuggler all got on with their
business because collectively we are too nervous to pierce the
barrier of money secrecy.
Money laundering protected by banking
confidentiality has the effect of corrupting markets and even
destabilising the economies of certain states. It is a major
obstacle to growth in countries where kleptocratic elites pillage
state coffers and assets, and launder the proceeds. Terrorists
still exploit poorly regulated financial institutions to fund the
murderous activities.
The EU is getting tough on global crime and tough on
the associates and accomplices of global crime. The need for a
common European campaign against crime becomes ever more urgent -
for all of us.
The NGO and business community has a key role to
play in raising public awareness of such issues (and I thank CSD
for providing the platform for this event today). There are good
cops, decent judges and honest government officials in Bulgaria who
are courageous in fighting gangs that transit drugs, arms, young
women and cigarettes into the richer regions of Europe. But they
need help. The best step would be to end the taboo on money secrecy
and make money ownership an accountable, transparent component of a
modern society.
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