Why the UK is to blame for tax havens

Every year hundreds of billions of pounds of potential tax revenue is lost globally to money laundering and other forms of tax avoidance.

This money should be building hospitals and schools; reducing poverty and improving ordinary lives around the world.

Our government is partly to blame. Through inaction they are allowing billions in unpaid tax to disappear into tax havens in the UK's Overseas Territories.

A key component of a tax haven is secrecy. Their governments and financial sectors are not transparent about money flowing in or out.

Let’s take an example. The British Virgin Islands – ranked #1 in Tax Justice Network’s corporate tax haven index – is a British Overseas Territory.

In 2019 the British Overseas Territories (including the British Virgin Islands) committed to make their financial affairs more transparent, by publishing public registers of who owns the companies based in their jurisdictions.

The 2018 Anti-Money Laundering Act gives the UK government the power to ensure they do so.

But guess what: six years on and only one British Overseas Territory has published an open register: Gibraltar. The others have not.

It’s down to the Foreign Secretary to apply pressure to places like the British Virgin Islands – to make them more transparent and publish public registers.

And your MP can write to the Foreign Secretary and demand action is taken.

Send a message to your MP and ask them to insist action is taken against dirty money in British Overseas Territories.