Contact Information:

Center for
Freedom and Prosperity
 P.O. Box 10882
Alexandria, Virginia
22310-9998
202-285-0244

CFP Update, October 9, 2001

Center for Freedom and Prosperity's Weekly Update

1) Washington Update

2) CFP Strategic Memorandum on the sneak attack on Bush Administration's international tax policy

3) Letter to President Bush from 25 prominent free-market leaders and supporters of individual liberty

4) CFP Foundation says new Money Laundering legislation will discourage help from other nations

5) Financial Times runs Dan Mitchell's letter to the editor on Michael Peel's misguided article

6) National Journal's follow-up interview with CFP

7) Excellent article on how money laundering laws "could hit the wrong targets"

8) Dan Mitchell's op-ed on why tax havens are not the problem

9) CFP Clips
 

1) Washington Update

Sorry we did not get an update out at the end of last week, but we are part of a non-stop effort to stop politicians from exploiting the recent terrorist attack by adding OECD/EU tax harmonization language to anti-money laundering legislation. As the memo below details, we believe the legislation should focus on jurisdictions that are guilty of sheltering terrorist funds rather than democratic countries with low-tax rates, financial privacy and healthy financial service industries.

2) CFP Strategic Memorandum on the sneak attack on Bush Administration's international tax policy

The Strategic Memo discusses the sneak attack on Bush Administration's international tax policy and the piggybacking of the OECD/EU tax harmonization agenda into the House and Senate money laundering legislation making it's way through Congress.  The memo written by Dan Mitchell of the Heritage Foundation is linked below:

October 8, 2001, CFP Strategic Memorandum, Sneak Attack on Administration's International Tax Policy
http://www.freedomandprosperity.org/Papers/m10-09-01/m10-09-01.shtml

3) Letter to President Bush from 25 prominent free-market leaders and supporters of individual liberty

More than twenty-five prominent free-market leaders and supporters of individual liberty sent a letter to President George W. Bush to express concerns that proposed money laundering legislation will undermine international cooperation in the fight against crime. The letter pointed out that threats of financial protectionism will create animosity and instead advocated that the United States expand its network of mutual legal assistance treaties. Link to letter below:
http://www.freedomandprosperity.org/ltr/president1/president1.shtml

Link to Press Release:
http://www.freedomandprosperity.org/press/p10-03-01/p10-03-01.shtml

4) CFP Foundation says new Money Laundering legislation will discourage help from other nations

The Center for Freedom and Prosperity Foundation released an analysis detailing why Senator John Kerry's "International Counter-Money Laundering Act" (S. 398) and Senator Carl Levin's "Money Laundering Abatement Act" (S. 1371) will discourage other nations from assisting the United States in the investigation and prosecution of universally recognized crimes such as the murderous attacks of September 11. Language from Kerry's and Levin's bills have been folded in to the two new money laundering bills moving through Congress.  Link to full study:
http://www.freedomandprosperity.org/Papers/kerry-levin/kerry-levin.shtml

Link to Press Release:
http://www.freedomandprosperity.org/press/p10-03-01/p10-03-01.shtml

5) Financial Times runs Dan Mitchell's letter to the editor on Michael Peel's misguided article.

Link to Mitchell's letter:
http://www.freedomandprosperity.org/Articles/ft10-08-01/ft10-08-01.shtml

Link to original Financial Times article:
http://www.freedomandprosperity.org/Articles/ft09-27-01/ft09-27-01.shtml

Link to Andrew Quinlan's letter to the editor that the Financial Times declined to run (I wonder why?):
http://www.freedomandprosperity.org/Papers/peel/peel.shtml#1

6) National Journal's follow-up interview with CFP

From the October 6, 2001, National Journal column, "From the K Street Corridor," Louis Jacabson, one of four reporters contributing to the column, reports on his conversations with Andrew Quinlan and Dan Mitchell.  Both Quinlan and Mitchell discussed the shameful antics and allegations of the ant-tax competition forces.

Excerpt from the column below:

Anti-Tax Group Feeling Touchy

These are touchy times for the economic conservatives at the Center for Freedom and Prosperity.  The September 11 terrorist strikes have put them on the defensive.  The center has been leading the fight in Washington against proposals to penalize small, low-tax countries in the Caribbean and elsewhere that have stringent bank secrecy laws.  The Organization for Economic Cooperation and Development-a group composed of 30 rich industrialized countries-wants to restrict these offshore banking centers, accusing them of letting individuals hide their money and escape detection by law enforcement and other authorities. The center and other conservatives-with some backing from Capitol Hill Republicans-argue that the OECD proposals would hinder the flow of global capital and push up taxation levels.

But advocating bank secrecy laws isn't the most popular position when law enforcement officials are trying to strangle Osama bin Laden's financial network.  A recent "strategic memo" to supporters from one of the center's founders, Heritage Foundation senior fellow Dan Mitchell, used impassioned language to counter suggestions that the center's goals inadvertently help terrorists.

Mitchell described both the September 11 strikes and the actions of his group's critics and "reprehensible." "If my conversations with journalists in recent days are any indication," Mitchell wrote, "opponents of tax competition are using the terrorist attacks as a reprehensible prop in their campaign against low-tax jurisdictions."  In interviews, Mitchell and center President Andrew Quinlan said they have always encouraged tough law enforcement against such serious offenses as money laundering, drug running, and terrorism. Mitchell acknowledged that the center has long been accused of being "in bed with money launderers," adding that he's built up a thick skin for the "rough-and-tumble" of politics. But this time, he said, the critics have gone "over the line. It's McCarthyite." -- Louis Jacobson, National Journal

7) Excellent article on how money laundering laws "could hit the wrong targets"

October 2, 2001, The Times (UK), By Graham Mather, Money-laundering fight could hit the wrong targets
http://www.thetimes.co.uk/article/0,,37-2001341189,00.html

8) Dan Mitchell's op-ed on why tax havens are not the problem

October 5, 2001, an op-ed by Daniel J. Mitchell of the heritage Foundation, Don't Scapegoat Tax Havens
http://www.heritage.org/views/2001/ed100501.html

9) CFP Clips

October 6, 2001, Financial Times, By Edward Alden and Richard Wolffe,

FIGHT AGAINST TERROR ECONOMY: US Congress prepares sweeping new laws to combat money laundering: TERRORIST FINANCE: Legislation will bring in crackdown on movement of criminal funds after dramatic policy change by Bush administration
http://www.freedomandprosperity.org/Articles/ft10-06-01/ft10-06-01.shtml

October 8, 2001, The Weekly Standard, by James Higgins, Follow the Money...But don't hold your breath.
http://www.weeklystandard.com/Content/Public/Articles/000/000/000/280twzww.asp

October 4, 2001, Reason, by Michael W. Lynch, Following the Money: The September 11th attack revives an attack on offshore banking
http://reason.com/ml/ml100401.html

September 30, 2001, Fort Lauderdale Sun-Sentinel, By Antonio Fins, Terrorists' cash flows in secret world
http://www.sun-sentinel.com/business/local/sfl-sbmoney30sep30.story?coll=sfla%2Db usiness%2Dfront

October 8, 2001, Newsweek International, By Rana Foroohar, Storming the Fortress, Investigators are rushing to crack open the bank secrecy that allows terrorists to hide their money trail
http://www.msnbc.com/news/635882.asp?cp1=1

September 28, 2001, Cato Institute, by Adam Thierer, National ID Cards: New Technologies, Same Bad Idea
http://www.cato.org/tech/tk/010928-tk.html

September 30, 2001, Independent.co.uk, By Paul Lashmar and Heather Tomlinson, The sun goes down in tax-free paradise, A clampdown on money laundering may force some havens out of business. But will it hurt the terrorists?
http://news.independent.co.uk/business/news_analysis/story.jsp?story=96757

September 28 2001, Financial Times, By Edward Alden in Washington, Congress likely to approve tougher laws
http://www.freedomandprosperity.org/Articles/ft09-28-01/ft09-28-01.shtml

September 29 2001,The Guardian, After the twin towers: 1. The global economy must be policed
http://www.freedomandprosperity.org/Articles/tg09-29-01/tg09-29-01.shtml

September 27 2001, The Economist, Terrorist finances: Getting to them through their money
http://www.economist.com/finance/displayStory.cfm?Story_ID=798424

Best regards,

Andrew Quinlan
Center for Freedom and Prosperity
President
202-285-0244
208-728-9639 (efax)
quinlan@freedomandprosperity.org
www.freedomandprosperity.org

 

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