Nauru commits to AEOI to join the global anti money laundering movement push
Actions by past administrations that
used Nauru as a tax haven for offshore banking and dubious
financial transactions will never be repeated after the Waqa
Government committed to an international convention aimed at
stamping out illegal practices.
Part of the Organisation for
Economic Co-operation and Development (OECD) since 2009, Nauru has
applied to join the OECD's Convention on Mutual Administrative
Assistance in Tax Matters, a body set up to clamp down on the
practice of offshore tax evasion through the exchange of financial
and tax related information.
Nauru's Minister for Finance David
Adeang says this Automatic Exchange of Information (AEOI) is a
major move in strengthening Nauru's push to increase transparency,
accountability, and co-operation between stakeholder countries
holding offshore accounts.
"Under this convention, not only
will financial accounts in Nauru become more scrutinised, but it
will help our Treasury recover tax revenue from non-compliant
taxpayers."
"All past connections with Nauru
being labelled a tax haven are now well and truly over as
Government continues to show leadership and transparency in these
economically important matters."
Minister Adeang also says the
commitment to the AEOI is further proof of Nauru's economic coming
of age after the nation was awarded membership from the World Bank
and International Monetary Fund.