Hong Kong second worst in financial transparency, says survey
Hong Kong is the world’s second least transparent financial center, making it vulnerable to tax evasion, money laundering and other wrongdoing.
It is topped only by Switzerland in a global survey by Tax Justice Network, a coalition of researchers and activists focused on tax avoidance issues.
The United States ranks third, followed by Singapore, Cayman and Luxembourg.
Rounding out the top 10 are Lebanon, Germany, Bahrain and Dubai.
The network said Hong Kong is one of the world’s fastest-growing tax havens, providing an array of offshore services and facilities.
These include tax exemptions, transfer pricing and consultancy services on China’s foreign exchange controls.
The Hong Kong government said it has been stepping up efforts to improve financial transparency.
Also, it has joined international counterparties to fight tax evasion.
A spokesman said the government has signed agreements on the exchange of tax information with these counterparties in line with Organisation for Economic Co-operation and Development standards.
