Saturday, May 20, 2017

Canadian banks dominate Caribbean's unsavoury financial sector


A recent photo in French daily Liberation hints at the Canadian Imperial Bank of Commerce's role in facilitating tax avoidance, which is partly an outgrowth of Canadian banking prowess in the Caribbean and Ottawa's role in shaping the region's unsavoury financial sector.

Just before the second round of the French presidential election documents were leaked purporting to show that Emmanuel Macron set up a company in a Caribbean tax haven. The president-elect's firm is alleged to have had dealings with CIBC FirstCaribbean, a subsidiary of Canada's fifth biggest bank.

While Macron denies setting up an offshore firm and contests the veracity of the documents, this is immaterial to the broader point. If the documents are a fraudulent political attack, those responsible chose CIBC First Caribbean because it is a major player in the region and has been linked to various tax avoidance schemes.

CIBC registered 632 companies and private foundations in the tax haven of the Bahamas between 1990 and May 2016, according to documents released in the Panama Papers.

CIBC was named 1,347 times in a cache of leaked files concerning secret tax havens released by the Consortium of Investigative Journalists in 2013.

FirstCaribbean was implicated in the 2015 FIFA corruption scandal. To avoid an electronic trail of a $250,000 payment to former FIFA official Chuck Blazer, a representative of FirstCaribbean allegedly flew to New York to collect a cheque and deposit it in a Bahamas account.  (more...)


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