The New York Taxpayer and International Debt Crises Protection Act in the Evangelist

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.

Read More

Devex Quotes Eric LeCompte on the New York Taxpayer and International Debt Crises Protection Act

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.

Read More

Bloomberg Quotes Eric LeCompte on NY Bills Impacting Private Creditors and Sovereign Debt Restructurings

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. 

Read More

African Catholic Bishops Urge G7 Action on Debt, Bank Reform and Aid to Navigate Africa Crises

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


African Catholic bishops, representing 23 countries, issued a statement to G7 leaders to take action on debt crises, development bank reform and greater aid for the continent hit by multiple crises. Finance ministers and central bank governors of the group meet this week, May 11th through 13th. Japan will host G7 ministers and presidents in Hiroshima on May 19th - 21st. 

The bishops raised Pope Francis’ call for effective and reliable processes to alleviate unpayable debts and advocated that private creditors participate in debt relief.

“The G7 include the major debt issuance jurisdictions that need to coordinate domestic legal reforms to deter [private] creditor litigation against countries renegotiating debts,” said the bishops. “Prompt passage of the New York Taxpayer and International Debt Crises Protection Act will do that for the large share of debt issued in that jurisdiction, and offers a simple and effective model other G7 countries can follow.”

New York State law governs more than 52% of contracts held by private creditors. Legislation pending in the state legislature and introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy would bring private creditors into international debt reduction agreements.

To prevent future debt crises, the faith leaders asked for greater use of debt contracts that increase risk-sharing between the borrowers and creditors, in the context of all types of lending.

African bishops commented on proposals that could expand multilateral development bank lending, currently under consideration by the G20. Since last year, shareholders led by the US and other G7 countries led a request for the World Bank to “evolve” through changes in its mission, operations and finances.

“[W]e approach with caution the intention to add new missions when the old ones – primarily poverty reduction and human development – remain so far from being fulfilled,” added the faith leaders. “Without an extremely bold injection of resources, such additions can only come at the expense of existing poverty reduction and development priorities in the places where they are most pressing.”

They also called for more African participation in the decisions on World Bank future.

The high-level religious leaders referred to the issuance of $650 in emergency liquidity currency – Special Drawing Rights – in 2021. More than $400 billion SDRs went to developed countries and only $33 billion to Africa. The IMF has two lending facilities that can receive SDR contributions to finance loans to developing countries.

“It is. . . essential to rethink Special Drawing Rights (SDRs) as an instrument of finance, and rechannel a significant portion of those held by wealthy countries to Africa,” stated the bishops.

The African Development Bank put forward a proposal for advanced economies’ SDR contributions to fund lending in the region, which the G7 currently considers.

“Africa's religious leaders know poverty in Africa because they lead so many major social services across the continent to alleviate poverty,” said Eric LeCompte, Executive Director of Jubilee USA Network, which supports Africa's Catholic Bishops in their advocacy. "Africa's religious leaders are positioned to explain to the G7 the need to address Africa's multiple crises.”

Find the African Catholic Bishops' Statement to the G7 here.

Read More

Executive Director Eric LeCompte Speaks With The Sanctuary For Independent Media On The NY Taxpayer and International Debt Crises Protection Act

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.

Read More

New York Can Change the World, Back Advocates in Albany

Friend,

Since you live in New York, I write to ask for your help in passing the most significant debt relief measure in the last 25 years. Today is the 3rd day that religious leaders, unions and constituents from across New York are meeting with your New York Assemblymembers and Senators to pass the New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). 

Because New York is the world's financial capital, most of the world's private debt is governed by New York law. Our Jubilee legislation will win relief, help stop economic shocks and protect New York taxpayers, consumers and our pensions.

Please write your Senator and Assemblymember now and urge them to co-sponsor our Jubilee New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). Tell your Senator and Assemblymember that all of New York's biggest unions and major religious groups, the United Nations and the world's most prominent development organizations want this legislation passed by June 1st. Tell your Senator and Assemblymember that the legislation will relieve the debts of countries dealing with the pandemic and food crises. Tell your Senator and Assemblymember the legislation immediately stops predatory vulture funds and that the legislation represents the most powerful and comprehensive solution to deal with global debt and the economic shocks that are faced in New York.

The bill, introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy, brings private creditors into debt relief deals at the same level as the US government, other governments and creditors. Because 60% of developing country debt is held by private creditors, this is crucial to lower the debt of developing countries. More than half of those private contracts are signed under New York law.

Those are countries the US trades with, so addressing debt crises quickly helps lower inflation. The bill also prevents the US contribution to debt relief deals, paid by taxpayers, from bailing out private creditors. As debt crises in developing countries shorten, the law supports pension investments that depend on their economies’ performance.

Today, advocates from all across the state gather in Albany for an Advocacy Day to ask their representatives to pass this critical legislation now. Call and add your voice to theirs.

Major unions, churches, development and environmental advocacy organizations, as well as global debt partners, support this legislation. Join them and help us move your representative in the New York State Assembly and Senate to get this legislation across the finish line by June 1st.

The United Nations Expert on Foreign Debt and Human Rights issued a letter to the entire New York State Legislature, underscoring how important the New York Taxpayer and International Debt Crises Protection Act is to the protection of human rights worldwide.

With your support, we can deliver on the Jubilee promise.

Gratefully,

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

 


FB Twitter Donate Blog Flickr

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

Read More

New York Assembly and Senate Champions Vow to Pass Global Debt Relief Bill

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.

Read More

Act: 25 Year Promise, New York Governor Kathy Hochul

Friend,

No matter what country you call home, the State of New York as the world's financial capital impacts every town and country in the world - and no matter where we live - New York impacts our lives and livelihoods. In fact, Jubilee legislation that's moving in the New York Assembly and Senate can win hundreds of billions in global debt relief and pandemic aid, stop our economic shocks and inflation and reduce the price of eggs, flour, fuel and coffee that all countries face.

Please write New York Governor Kathy Hochul to pass and sign our Jubilee New York Taxpayer and International Debt Crises Protection Act (A2970, S4747). Tell the Governor that all of New York's biggest unions and major religious groups, the United Nations and the world's most prominent development organizations want this legislation passed by June 1st. Tell Hochul that the legislation will relieve the debts of countries dealing with the pandemic and food crises. Tell Hochul the legislation immediately stops predatory vulture funds and that the legislation represents the most powerful and comprehensive solution to deal with global debt and the shocks that we face in the United States, New York and Puerto Rico.

As you write the Governor, New York's largest religious bodies and unions are demanding passage of the legislation. All of the major global debt and development groups are calling for the legislation to move forward. Puerto Rico's Archbishop and major religious leaders want this legislation. AND - a hundred young people from Africa are inundating New York Senators and Assemblymembers to co-sponsor the legislation. This is on top of thousands of people in New York taking action and the largest Jubilee mobilization of our grassroots in every single region of New York. On May 2nd and 3rd, from across New York State, New Yorkers are descending on Albany to move our legislation.
 
Read about the bill in Reuters and the New York Times here. Watch our video produced by our good friends from Jubilee Germany that explains how the New York Taxpayer and International Debt Crises Protection Act works. You can read the legislation, talking points and all materials on the legislation here.
 
E-mail and call New York Governor Kathy Hochul and tell her to support the New York Taxpayer and International Debt Crises Protection Act to protect our long term investments, our pensions and poor communities. The debt relief that poor countries win will allow them to address climate change, get vaccinations and respond to the pandemic. As these countries get relief on regional scales - it can reduce the costs of food, fuel and commodities in the US. Plus this legislation can make good, legitimate investments even more profitable.

Hundreds of New York, national and global groups are supporting the legislation. Oxfam America is deploying team members and resources so we can get the legislation passed before June 1st.

Just some of the groups that wrote the legislature and Governor and support the legislation: The New York AFL-CIO; the New York State Catholic Conference and Catholic Bishops, the New York State Council of Churches; New York AFSCME; the New York State Public Employees Federation; Oxfam America; Bread for the World; the ONE Campaign; Puerto Rico's Speaker of the House; the Catholic Climate Covenant; The Hudson Mohawk Conference of the Evangelical Lutheran Church in America (ELCA) Upstate New York Synod; Presbyterian Church (USA); Rivers & Mountains GreenFaith Circle; the Leadership Conference of Women Religious, Jubilee USA Network, Jubilee Germany, Debt Justice UK, Afrodad, Eurodad, Latindadd and Jubilee Asia Pacific all are urging immediate passage of the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970).


WOW - and On April 21st, the United Nations Expert on Foreign Debt and Human Rights issued a letter to the entire New York State Legislature, urging them to immediately pass the New York Taxpayer and International Debt Crises Protection Act (S4747, A2970).

60% of developing country debt is held by private creditors. New York law governs 52% of this global debt. Private creditors are not participating in debt relief for developing countries, even though the US government and G20 are demanding that vulture funds and commercial banks participate. New York and US taxpayer money bails out private creditors when private creditors refuse to offer the same level of debt relief that the US government offers.

Introduced by Senator Brad Hoylman-Sigal and Assemblymember Patricia FahyThe New York Taxpayer and International Debt Crises Protection Act (S4747, A2970) ensures that private creditors participate in debt relief at the same level as the US Government, other governments and development banks. This will quickly cut and reduce unsustainable and unpayable debt so that developing countries can spend more money on essential public services, reducing poverty and address climate change.

Please write, call and send e-mails to New York Governor Kathy Hochul and tell her to move passage and immediately sign into law The New York Taxpayer and International Debt Crises Protection Act (S4747, A2970). Tell her this one page legislation is a rare breed as it is pro-people, pro-business, pro-labor, pro- United States, pro-investment, pro-relief and pro-planet.

25 years ago we, together, embarked on a global journey to end poverty, address inequality and protect our planet. We work on debt, tax, trade, corruption and climate issues because these are the root causes of issues that deal with people and planet. After we won successive global agreements on debt relief, transparency and new forms of economic aid - we realized the global financial system was changing.

That's why we started organizing in New York in 2012 and were the only organization to defeat vulture funds twice when they tried to take advantage of most of the world's countries. In 2014 we started leading new New York campaigns on debt relief legislation. THEN the pandemic happened and we found that all of our previous work in New York was no longer relevant - because now all private sector companies started to follow the vulture funds.

So with the best and brightest sovereign debt and development lawyers in the world, we created a piece of New York legislation that is only one page. The New York Taxpayer and International Debt Crises Protection Act moves debt relief in every past, present and future process.

The pandemic changed our lives and world and we needed a new type of global legislation. Now the New York Taxpayer and International Debt Crises Protection Act will transform our world and fulfill the promise we made, together, 25 years ago.

Tell Governor Kathy Hochul as a Catholic and Christian who believes in the Church's call to live justly, that she must support the New York Taxpayer and International debt Crises Protection Act.

With your help, we can win the promise - the Jubilee Promise to address poverty, corruption and inequality and to protect our planet. 

Gratefully,

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.


FB Twitter Donate Blog Flickr

 

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

Read More

International Debt Crises Day of Action

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].

 

Meeting location:

Bull Moose Club 150 State St 4th Floor, Albany, NY 12207 (Moving to NYS Capitol Building at 11:00 AM) 


Schedule for Tuesday, May 2nd

  • 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.

Read More

Jubilee USA Comments on Proposed Rulemaking on Beneficial Ownership Information Access and Safeguards

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)

Read More

Jubilee USA Statement on G20 Finance Ministers Meeting

G20 Finance Ministers Struggle With Economic Challenges and Global Debt

G20 finance ministers conclude their meetings during the Spring IMF and World Bank Meetings. The ministers focused on the pandemic, Ukraine war and inflation shocks to the global economy, debt vulnerabilities in developing countries, food insecurity and the climate crises. 

Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who has monitored G20 and IMF meetings since 2010, releases the following statement on the G20 finance ministers meeting:

"The G20 is focused on a growing global debt crisis.

"Multiple crises are taking a heavy toll on the global economy.

"In developing countries, we lost decades of development and we are dealing with growing crises on poverty, food and climate.

"The G20 is taking steps to increase lending from development banks.

"$4 trillion annually is what developing countries need and increasing lending capacity of development banks is a way to help secure the resources that countries need."

Join us for a Jubilee USA, IMF and World Bank Press Conference: Friday, April 14th, 2:00 PM, Community Park Outside of IMF, view advisory and online and in-person press registration. (More info and and registration here).

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here

Read More

IMF Forecasts Lowest Growth in Decades as World Leaders Descend on Washington for Meetings

Debt Roundtable Meetings Attempt to Break Impasse on Debt Relief From China and Private Sector

The International Monetary Fund forecasted the lowest global growth in decades as world leaders attend IMF, World Bank, G7 and G20 meetings. The IMF flagship World Economic Outlook report expects growth to fall to 2.8% this year. 

“The ongoing war and high inflation and interest rates are pushing countries into debt and food crises,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. LeCompte has monitored IMF and World Bank policies since 2010. “In the US and around the world more people are facing hunger because of intertwined global crises.”

High debt ratios in low- and middle-income countries as interest rates rise across the world are a concern that the report highlights. The report suggests that debt restructurings will play an important role in reducing debt.

“In the IMF's key report issued this week, they noted the need for there to be processes for debt relief that can deal with multiple countries,” shared LeCompte. "Current debt relief processes are failing to cut debt and get countries the aid they need."

As part of pandemic and financial crisis response, the G20 created a process called the Common Framework to facilitate debt restructuring for more than 70 developing countries. On Wednesday, a group of stakeholders representing the private sector and lending and borrowing countries, met in a forum called the Sovereign Debt Roundtable.

"The Sovereign Debt Roundtable is an attempt to overcome some challenges regarding participation from China and the private sector in current debt relief initiatives," noted LeCompte. "Legislation is moving in New York State, the world's financial center, that ensures the private sector participates in debt relief."

The New York Taxpayer and International Debt Crises Protection Act (S.4747, A.2970) allows developing countries to receive debt relief from the private sector. The legislation sponsored by Senator Brad Hoylman-Sigal and Assemblymember Patricia Fahy ensures the private sector participates in global debt relief agreements and promote global financial stability.

On Tuesday, the IMF released the Global Financial Stability report and found that rising geopolitical tensions increase risks in the financial system through loss of capital, impacts on the banking sector and less opportunities to cushion external shocks.

“Based on IMF analysis, the shock of the Ukraine war is making other economic shocks worse,” added LeCompte. “The war in Ukraine means that the poorest countries have less capacity to face shocks and will suffer the most."

On Thursday, G20 Finance Ministers meet. On Saturday, the IMF and World Bank Spring Meetings conclude. 

Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here

Read more about the New York Taxpayer and International Debt Crises Protection Act here

Join the Jubilee USA Friday, April 14th, 2:00 PM Community Park Press Conference outside the IMF with leader from the Africa Catholic Bishops, Bishop Charles Kasonde, Rev. Charles Chilufya S.J., Latindadd's Patricia Miranda, Athena Peralta of the World Council of Churches, the AFL-CIO's Policy Director Candace Archer and Jubilee's Eric LeCompte. More info and registration here.

Read the full World Economic Outlook Report here.

Read the full Global Financial Stability Report here.

Find Jubilee USA's April 14th interfaith vigil and press conference details here.

Read More