Friend,

Last week we were voted through the New York Assembly Judiciary Committee so that the New York Assembly will have a chance to vote on Jubilee's New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Thanks to the actions you are taking we can pass this year this critical legislation that can provide debt relief and pandemic and climate aid to countries in crises. You can read more about the campaign in Eric's e-mail below and read more resources.

We need your help to make sure we get a vote in the New York Assembly and Senate before their session ends on June 9th. Please contact New York Senate Leader Andrea Stewart-Cousins and Assembly Speaker Carl E. Heastie immediately and urge them to co-sponsor and bring the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970) to the floors for a vote.

Since our legislation moved out of committee last week, hundreds of newspapers covered the growing momentum of the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Please take action on legislation that stops predatory debt collection, addresses inflation and economic shocks, protects our planet and helps lower global food costs.

Gratefully,

Aldo Caliari
Senior Director of Policy and Campaigns
Jubilee USA Network
[email protected]
www.jubileeusa.org/support-us

(View this email in web form)

Friend,

Eric LeCompte
Executive Director

Twitter: @Eric_LeCompte
www.jubileeusa.org/support-us

Ps. Gifts to support Jubilee USA's efforts are doubled now. Please make a tax-deductible, matching gift to support Jubilee USA Network today.

Jubilee USA Network
110 Maryland Ave. NE, Ste. 210 - Washington, DC 20002
(202) 783-3566 - [email protected]

The Evangelist mentions Jubilee USA as the driving forces behind the passage of the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Read an excerpt below, and click here for the full article.

A Catholic approach to global debt

By Walter Ayres

Earlier this month, Albany became the focus of a campaign to address the complicated issue of international debt in a way that is fair and just.

So I happily joined representatives of various faiths, advocacy groups and labor organizations for a rally at the Capitol in support of legislation that would, in the process, also address matters such as inflation, high-food costs and the reality that developing countries need debt relief as quickly as possible.

The focus of this concern is a bill known as the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970), sponsored by Assemblymember Patricia Fahy. The New York State Catholic Conference supports the bill because “these debt relief initiatives have direct, positive effects for our trading partners, the legislation addresses U.S. inflation and economic and supply shocks and helps bring down the cost of eggs, flour, coffee and other commodities.”

Read here for more.

Devex quotes Eric LeCompte on the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970) and its opposition. Read an excerpt below, and click here for the full story.

Devex Invested: Why IFC's solar program failed to take off in Africa

By Adva Saldinger

The World Bank and its private sector arm, the International Finance Corporation, are under pressure to deliver on projects that address climate change and attract more private capital to the table. The same was true back in 2015, when the “billions to trillions” narrative was at its zenith.

Back then IFC launched its Scaling Solar program in an effort to increase solar power in lower-income countries and use donor dollars to mobilize more private money.

So how has the initiative fared? That’s what I sought to find out as the program has come under scrutiny.

Read here for more.

Bloomberg quotes Eric LeCompte on the NY Bills that aim to limit the amount private creditors can recover in sovereign debt restructurings. Read an excerpt below, and click here for the full article.

New York Bills That Cap Key EM Debt Payouts Rile Pimco, Fidelity

By Zijia Song and Ezra Fieser 

Major investors from Pacific Investment Management Co. to Fidelity Investments are pushing back against New York bills that stand to limit the amount private creditors can recover in sovereign debt restructurings.

The legislation — comprised of proposals in both the state senate and assembly — would force investors in defaulted sovereign bonds to accept comparable losses to governments and other public creditors during restructurings. If passed, the new rules would apply to debt governed by New York law, which makes up about half of all emerging-market bonds.

While similar proposals have failed to gain traction in the past, momentum is building behind the new legislation and stoking concern among some of the world’s biggest asset managers.

Read here for more. 

Africa Faith Leaders Urge Passage of New York Taxpayers and International Debt Crises Protection Act (S4747, A2970)

Eric LeCompte speaks with Mark Dunlea from Hudson Mohawk Magazine on the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Listen to the full interview here.

Jubilee USA Pushes NY To Enact International Debt Relief Law

As the world’s leading financial center, NY law governs the majority of the developing world debt contracts. Third world debts have grown unsustainably large as COVID, climate change, and the war in Ukraine have worsened these nation’s financial conditions. Eric LeCompte of Jubilee USA Network explains how the NY Taxpayer and International Debt Crises Protection Act would help remedy this problem. With Mark Dunlea for Hudson Mohawk Magazine.

Friend,

Largest New York Labor and Religious Groups Support the New York Taxpayer and International Debt Crises Protection Act 

Speaking at a press conference from the famed "million dollar staircase" in New York's State Capitol, State Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy vowed to pass debt relief legislation, the New York Taxpayer and International Debt Crises Protection Act (A.2970, S.4747).

“The global COVID-19 pandemic and climate disaster have all laid bare just how interconnected the global economy has become today,” said Fahy. “New York is the world’s global financial hub — positioning us well to enact basic changes that will ensure debt relief for developing nations through investments in sustainable growth, infrastructure and more.”

Fahy, the lead Assembly sponsor of the bill, asserted that the initiative will benefit taxpayers and consumers in New York and the US as well as protect the state’s status as the world’s leading financial center. Constituents from across the State of New York descended on Albany on May 2nd to meet with lawmakers to urge passage of the Fahy and Hoylman-Sigal legislation. 

“Our bill will help countries struggling to recover from challenges like climate change and COVID. At the same time, the bill will protect New York taxpayers and reduce the harmful impact of inflation,” said Hoylman-Sigal, the lead sponsor in the Senate of the The New York Taxpayer and International Debt Crises Protection Act.

Developing countries owe more than 60 percent of their debt to private firms. Since 52% of the world's private sector debt is governed by New York law, the New York Taxpayer and International Debt Crises Protection Act (A.2970, S.4747) ensures the private sector participates in relief agreements supported by the US Government.

“Most of the world's countries continue to struggle with the pandemic and food crises,” noted Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “When developing countries, our trading partners, are in crises we face higher prices for eggs, flour, fuel and coffee."

A large coalition of religious, development, labor and environmental organizations promotes the legislation. Supporters include major unions such as New York AFL-CIO; New York AFSCME and the New York State Public Employees Federation; churches such as the New York State Catholic Conference; the New York State Council of Churches, the United Church of Christ, the Methodist Church and the Presbyterian Church; development organizations such as Oxfam America; Bread for the World and the ONE Campaign; Puerto Rico's Speaker of the House and religious leaders on the island; and environmental groups such as Catholic Climate Covenant and the Rivers & Mountains GreenFaith Circle. 

"Major religious groups and unions support the legislation because it provides aid to people struggling with crises, protects our pensions and can help address inflation," noted LeCompte who serves on United Nations debt expert groups.

Last week, the United Nations Independent Expert on Foreign Debt and Human Rights, Attiya Waris, issued a letter to the New York legislature highlighting how the legislation will advance human rights. 

Read the New York Taxpayer and International Debt Crises Protection Act bill and bill memo here.

Read the talking points for the New York Taxpayer and International Debt Crises Protection Act here.

Read The New York AFL-CIO, the New York State Catholic Conference, the New York Council of Churches, New York AFSCME, Oxfam America, Bread for the World, Puerto Rico and other Memos/Letters of Support for the New York Taxpayer and International Debt Crises Protection Act here. 

Read the In-depth Frequently Asked Questions on the legislation here.

Read the media coverage on the legislation here.

Find Jubilee USA's press releases on the bill here.

Find all of the New York Taxpayer and International Debt Crises Protection Act resources here.

Friend,

Protect Taxpayers, Prevent Future Debt Crises

State legislators decide on laws that affect every aspect of US citizens' lives and in the case of the New York Taxpayer and International Debt Crises Protection Act, the lives of developing countries citizens' and our planet. In the face of unsustainable inflation, supply shocks, rising food costs and developing country debt crises, we are calling on New York State legislators to pass The New York Taxpayer and International Debt Crises Protection Act.

Join us on Tuesday, May 2nd for a day of action and press conference at the New York State Capitol to advocate for the New York Taxpayer and International Debt Crises Protection Act. 

To stay up to date on all the International Debt Crises Day of Action please register at the link below. If you have any questions feel free to contact [email protected] or [email protected].

• 9:30 AM – 10:00 AM: Arrival and Breakfast at Bull Moose Club
  

• 10:00 AM – 10:30 AM: Opening Remarks & Testimonials from Local Leaders

  
  
  • Rev. Nicolle D. Jean-Simon, Duryee Amez Memorial Church 
    
    
  • Rev. Dustin G Longmire, Pastor at Messiah Lutheran Church
    
    
  • Jacob King, First Unitarian Society of Albany
    
    
  • Amaury Tañon-Santos from Schenectady Community Ministries

• 10:30 AM – 11:00 AM: Training
  
  
• 11:00 AM - 11:15 AM: Walking to NYS Capitol Building and going through security
  

Note: Our gathering space between meetings, from this time to 4 pm, will be a table by the McDonald's in the Empire State Plaza's food court. (Please find a Plaza map here.).

• 11:30 AM - 1:15 PM: Legislative Meetings
  
  
• 1:15 PM - 1:30 PM: Move to the Million Dollar Staircase for press conference
  
  
• 1:30 PM - 2:00 PM: Press Conference
  
  
• 2:00 PM - 4:00 PM: Later Advocacy Visits (TBD)
  
  
• 4:00 PM - 5:00 PM: Walk back and debrief at Bull Moose Club

Register at Jubilee International Debt Crises Day of Action Registration.

Jubilee USA submission to the consultation on the Notice of Proposed Rulemaking on Beneficial Ownership Information Access and Safeguards, and Use of FinCEN Identifiers for Entities

Click here to read this submission on the official consultation website. 

February 14, 2023

Acting Director Himamauli Das
Financial Crimes Enforcement Network (FinCEN)
U.S. Department of Treasury
P.O. Box 39
Vienna, VA 22183

Re: Notice of Proposed Rulemaking on Beneficial Ownership Information Access and Safeguards, and Use of FinCEN Identifiers for Entities (RIN 1506-AB49/AB59 / Docket Number FINCEN-2021-0005)

Jubilee USA Network appreciates the opportunity to comment on the notice of proposed rulemaking, “Beneficial Ownership Information Access and Safeguards, and Use of FinCEN Identifiers for Entities.”

We are an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners to build an economy that serves, protects and promotes the participation of the most vulnerable. We are concerned with how financial secrecy, corruption and tax evasion are connected to poverty in the United States and abroad. In particular, we have witnessed how anonymous shell companies have facilitated exploitation of vulnerable communities and supported corrupt regimes in the developing world.

The Corporate Transparency Act introduces transparency into otherwise anonymous corporate structures by requiring companies to report their true, “beneficial” owners to a secure directory housed at FinCEN.

We promoted and worked towards passage of this legislation for more than 10 years. During that time we built support with members of Congress, senators and Administrations from both parties. We made this investment because our members consider this legislation essential to: 1) stop ways that human traffickers hide and make profits, 2) prevent the exploitation of vulnerable communities in the United States through Medicaid and Medicare fraud, 3) curb the theft of development and debt relief aid, 4) reveal theft from corrupt foreign governments of public monies, and 5) help raise revenue in the developing world.

Our members have an interest in seeing strong, effective rules that maximize the law’s potential to contribute to such purposes. We commented in the FinCEN rulemaking process leading to the final rule on Beneficial Ownership Information Reporting Requirements and appreciate that many of our comments were considered and reflected.

The same spirit informs our formulation of responses to the current call for comments.

The CTA includes a mandate that the database provide “highly useful” information to law enforcement. We believe that law enforcement - federal, state, local, tribal, and, in appropriate cases, foreign – and financial institutions with anti-money laundering obligations, database auditors, and other authorized users should have simple, comprehensive, and timely access to this information. Only this level of access to the directorate of beneficial ownership information will meet the standard of “highly useful” set in the legislation.

State, Local, and Tribal Law Enforcement Access

In particular, regarding state, local, or tribal law enforcement agencies, the CTA has very straightforward language: FinCEN should disclose beneficial ownership information upon receipt of a request from a state, local, or tribal law enforcement agency “if a court of competent
jurisdiction, including any officer of such a court, has authorized the law enforcement agency to seek the information in a criminal or civil investigation.”

Contrary to this plain language and intent of the law, the proposed rule increases – with no foundation – the standard that state, local, and tribal law enforcement must meet to access the database in two key ways. First, the proposed rule requires that a requesting agency submit to FinCEN “copy of a court order from a court of competent jurisdiction authorizing the agency to seek the information in a criminal or civil investigation” as well as a “written justification that sets forth specific reasons why the requested information is relevant to the criminal or civil investigation.” A “court order” is a term of art more stringent than the CTA’s statutory language of “court authorization.” Requiring a court order increases the burden on investigators to justify their use of the database in investigations, as well as on courts themselves, by requiring most likely a judge to complete the order.

This leads to the second issue: the practical impact of a court order requirement contradicts the statutory language that “any” officer of competent court of jurisdiction can approve a request, and increases the risks of clogging up courts with administrative burdens. Moreover, Congress considered and rejected more restrictive requirements such as obtaining a court order or subpoena or ascertaining that a requesting agency’s request be reasonably relevant and material to an investigation. Legislators settled on the “authorization from a court officer” deliberately, and to lower barriers to usage and formalism in the request.

We encourage FinCEN to stay within the confines of the law and drop artificial new requirements that will limit effective access.

Access by Foreign Competent Authorities

In regards to foreign requesters, the CTA allows U.S. government agencies to make requests of the database on behalf of foreign law enforcement officials for countries that have existing information sharing agreements or that are “trusted foreign countries.” The proposed rule seeks feedback on whether FinCEN should define the term “trusted foreign countries.” We believe that the agency has appropriate flexibility to determine this list in accordance with potential shifting realities within other governments or in U.S. foreign relations, but we encourage FinCEN to define and follow some principles, in the interest of fostering multilateral law enforcement collaboration.

FinCEN is correct that the CTA has left the Bureau discretion in the determination of “trusted foreign countries.” But the approach and metrics to make such a determination, and motivation for changes to it over time, should be understandable and accessible. For instance, once a country X is deemed as “trusted” for the purposes of a request, denying other requests from the same country could fuel a sense that certain companies are less deserving of scrutiny than others. The determination that country X is “trusted” could, of course, change over time, but there should be clarity on the change and what justifies it. As currently drafted, the rule seems to leave too much room for case-by-case assessments. Failure to observe some consistency would ultimately harm US interests in maintaining bilateral arrangements for information sharing with the countries in question.

Access by Financial Institutions

In terms of financial institutions access, we believe they should have full, uncomplicated access to ownership records in the database following appropriate protocols. Further, we believe FinCEN has too narrow of a read on how financial institutions can use this information. While FinCEN’s proposed rule states that financial institutions can only use this information to carry out their antimoney laundering obligations under the 2016 Customer Due Diligence Rule (CDD Rule), it instead should allow financial institutions to use this information pursuant to all their customer due diligence obligations – e.g. anti-fraud or sanctions screening – required by applicable law.

The proposed rule suggests financial institutions information-retrieval process will be on more limited basis than that granted to law enforcement, which we find may render the registry less useful in combating illicit activity and create restrictions that have dubious grounds in the CTA and consistency with its spirit and purpose.

Verification of Data

Finally, we find the proposed rule fails to go far enough into the specifics of database design that will ensure its searchability and data quality yield the “highly useful” results for law enforcement the CTA intended. We proposed that FinCEN adds steps to verify data, but the proposed rule merely states the agency is considering options to do this “within the legal constraints in the CTA.”

There are multiple ways FinCEN can resort to existing information to verify beneficial ownership information reported by companies, and it should take advantage of as many of them as possible. Partnerships with the U.S. State Department, National Law Enforcement Telecommunications System or the U.S. Postal Service, among others, are viable options. Verifying the data is the best way to ensure the efficacy of the CTA database, and to make the information in the database highly useful to law enforcement and national security officials.

Conclusion

Corporate transparency will have a major impact in reducing international corruption, thereby providing vulnerable populations with the means to access resources for building schools, hospitals, and the infrastructure necessary for development. Additionally, the collection of beneficial ownership information will make it harder for those stealing from the most vulnerable to use the United States financial system as a safe haven to hide their money. Jubilee USA Network looks forward to working with FinCEN during its rulemaking on the Corporate Transparency Act to
ensure this mission is achieved.

In closing, we thank you again for your consideration of these comments. For any questions or clarifications on our comments please feel free to contact Aldo Caliari at [email protected].

Sincerely,

Aldo Caliari
Senior Director of Policy and Strategy

*Reflection of this broad support is a letter we organized last year in which more than a 100 religious organizations, congregations, faith-based communities and others urging U.S. Senators to support the Corporate Transparency Act (available at http://www.jubileeusa.org/jubilee_usa_anti_money_laundering_act_of_2020_letter)

G20 Finance Ministers Struggle With Economic Challenges and Global Debt