Leading US Treasury Advisor Speaks Out On Money Laundering

by Mike Godfrey, Tax-News.com, Washington

06 August 2002

General Counsel to the US Department of the Treasury, David Aufhouser didn't pull any punches when speaking at a symposium on money laundering in Bermuda organised by law firm Mello Jones & Martin last week.

Explaining the reasoning behind the US Patriot Act, and detailing the consequences for countries which fail to cooperate with the United States in its anti-money laundering crackdown, Mr Aufhouser told delegates to the symposium that:

'We are at war. Revenues are sorely needed,' adding that: 'The war requires international cooperation or it borders on political theatre.'

The locally-based Royal Gazette reported that the senior policy advisor to the Treasury admitted that the recent wave of corporate inversions to Bermuda had been caused by the United States' complex and uncompetitive tax code. However, he also stated that it is a 'privilege' for US citizens to pay taxes which amount to around $2 trillion per year, and for non-US companies to do business with the United States.

He went on to warn that the outside world must cooperate with the United States in its ongoing campaign to stamp out money laundering and terrorist financing, or face the economic consequences.

Controversially, according to the Royal Gazette, Mr Aufhouser also labelled Dubai's financial centre the 'epicentre of terrorist financing'.

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