Hidden Money

Tax evasion and money laundering are generating major headaches and revenue losses for governments across the globe. In this shadow economy, wealthy investors and others use offshore tax havens and shell companies to hide money and avoid tax collectors. Drug cartels and other criminals, meanwhile, launder money by buying real estate or putting illicit gains in legitimate businesses. According to one estimate, the amount of hidden money worldwide tops $10 trillion. In response, experts are urging more cooperation among governments. The United States is seeking to collect more information on the overseas financial accounts of U.S. citizens, and other nations want Washington to share more data about their citizens' accounts in U.S. banks. But the Trump administration opposes a proposal that would require multinational companies to disclose their earnings in each country and pay a global minimum tax. And with U.S. states competing to attract businesses, the United States has become one of the largest tax havens in the world.