According to a new assessment of financial centres, both the US and Switzerland have become more secret, despite moves to reduce tax evasion, as Danielle Myles reports.

Switzerland and the US are the world’s biggest centres for bank secrecy, according to recent research by left-leaning advocacy group Tax Justice Network. Its Financial Secrecy Index 2018 ranks 110 jurisdictions according to their ‘secrecy score’, which is based on 20 qualitative indicators – including regulations and information exchange processes – and the volume of financial services a country provides to foreigners.

As with the previous index in 2015, Switzerland tops the table. Despite becoming a signatory to global standards designed to tackle tax evasion, its secrecy score has increased from 73 to 76. The US’s secrecy score is flat at 60, but it has moved up a spot to second place due to its increased share of the global export market for financial services.

The Cayman Islands jumped from fifth to third after its secrecy score soared 12 points, while Hong Kong dropped one place in both rank and secrecy score. Singapore also moved down one spot in the ranking.

The highest-ranking EU countries are Luxembourg and Germany, both of whose secrecy scores increased three points since 2015. The United Arab Emirates has overtaken Bahrain and Lebanon to become the highest ranked Middle Eastern jurisdiction, after increasing seven points.

All data sourced from the Tax Justice Network’s Financial Secrecy Index 2018.

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