Small island states are not the only places to hide money. There are many onshore havens.
The United Emirates and its seven mini-kingdoms isare notoriously impenetrable. Switzerland still has strong banking secrecy laws, but a clampdown by American prosecutors fighting tax evasion by US nationals has eviscerated many of the smaller private banks in Zurich and Geneva. Much of their business has moved to Singapore and Hong Kong.
Americans looking for secrecy and low tax rates don’t need to leave home. The state of Delaware has a reputation for looser oversight than Caribbean havens. Its official website boasts that over 1m businesses have made Delaware their home. Business-friendly courts and the absence of many taxes traditionally levied on companies mean many of the largest American corporations register in the state. But dark money hides here too, because no information on company owners is collected at state level. The states of Wyoming and Nevada offer similar incentives. Ownership information may only be obtained by a court order.
The US senator Carl Levin retired in 2015 after fighting for a decade to sweep away the secrecy of America’s onshore havens. He put forward legislation backed by the president himself, but even Obama’s support couldn’t secure the votes needed.
For some, the City of London is the ultimate onshore haven. The Corporation of London, which governs the square mile and owns much of it, is more than a local authority. Even today, during certain ceremonies, the Queen must stop at Temple Bar to request permission to enter the City from the lord mayor. Its elections controversially allow businesses to cast a vote, and they far outnumber residents. It has been described by the tax writer Nicholas Shaxson as “an offshore island inside Britain, a tax haven in its own right”.