According to the Tax Justice Network the US ‘First State’ of Delaware topped the list as the most secretive financial jurisdiction. Next in the list came Luxemburg, then Switzerland, then the Cayman Islands, with the UK trailing in fifth place out of a total of 60.
The Financial secrecy Index has been drawn up by experts taking into account the amount of offshore activity and how much information is obtained about beneficial ownership and how co-operative they are with regulators. Delaware does not tax profits realised outside the state and also does not require companies to have a physical presence in the State.
So, the US has been striding the World berating the Swiss, whilst hiding their own dirty secrecy laundry. The Swiss have for years been considered as the dark model for banking secrecy.
In Delaware’s defence, a business law professor from Widener University (in Delaware) Larry Hamermesh, said that the state’s attraction lies in its flexible laws and expert courts, not its banking secrecy, which he said is no more or less than any other state. Well he would wouldn't he?