Yellen vows war on graft at home and abroad

WASHINGTON • The US Treasury Department must play a major role in combating corruption at home and abroad, Treasury Secretary Janet Yellen has told President Joe Biden's democracy summit.

Unveiling a new fund at the event to reward tips on where corrupt foreign leaders hide their money in the US yesterday, she added that the Treasury was working to crack down on money laundering and illicit finance from overseas, while beefing up enforcement against tax evaders at home who cost the Treasury US$600 billion (S$818 billion) in revenues last year alone.

"The United States cannot be a credible voice for free and fair government abroad if at the same time we allow the wealthy to break our laws with impunity," she said.

Dr Yellen said the dominance of the US financial system in international markets and lax laws mean "there's a good argument that, right now, the best place to hide and launder ill-gotten gains is actually the United States".

The Treasury this week announced new rules requiring domestic and foreign-owned US firms to provide new information on ownership.

Congress' authorisation of the fund - the Kleptocracy Assets Recovery Rewards programme - is part of the fiscal 2021 National Defence Authorisation Act to "intensify the global fight against corruption" and aid US efforts to identify and recover stolen assets and return them to the country in question.

The legislation called for a US$25 million cap per year on payments for tips that led to seizure, forfeiture or repatriation of stolen assets at US financial institutions.

REUTERS, BLOOMBERG