The Jubilee Blog

Religious Development Group Responds to US/Mexico Trade Deal

By Lydia Andrews

President Trump announced on Monday that the United States reached a trade deal with Mexico that replaces the previous North American Free Trade Agreement, also known as NAFTA. As the announcement took place, religious groups met with the Office of the US Trade Representative (USTR) on the agreement.

"While we still don't have full details on the agreement, we hope the new agreement ensures greater protections for vulnerable communities than previous trade agreements," noted Jubilee USA Executive Director Eric LeCompte, who was at the USTR meeting. "We believe we've made some progress."

In May, major US religious groups wrote President Trump and Congress urging that trade agreements protect poor people in trade disputes and ensure access to life-saving drugs. The statement was issued by Jubilee USA and the Catholic, Episcopal, United Methodist, Presbyterian, Evangelical Lutheran and United Church of Christ Churches.

A final agreement has not been signed and would need to be approved by Congress. Canada may also join the negotiations on a final or separate agreement.

Read the statement NAFTA and International Public Health: An Interfaith Call for Access to Medicines

"Stop Corruption and Money Laundering," says United Nations and Multinational Companies

By Lydia Andrews

The UN Economic Commission for Africa renewed calls to tackle money laundering during a UN meeting this week in Addis Ababa. At the meeting, governments were urged to follow the recommendations in the Mbeki report that notes Africa loses between $50 and $80 billion annually through corruption, tax evasion and other "illicit financial flows."

“The revenue loss to countries from tax evasion and money laundering across Africa impact vulnerable communities across the continent," stated Eric LeCompte the Executive Director of the religious development group, Jubilee USA. "Too many African countries are facing new debt crises because of revenue shortfalls." LeCompte serves on United Nation finance expert groups. 

In an opinion piece in The Hill on Thursday, the vice president of the National Foreign Trade Council urged Congress to adopt transparency regulations to tackle money laundering and corruption in connection with Russia. The author cites recommendations from a report of the Atlantic Council that would reveal the actual owner of a shell company. "Anonymous" shell companies can be used as vehicles for corruption and to hide the identity of the owner who benefits from the corporation. Board members of the National Foreign Trade Council are a who's who of multinational businesses including Amazon, Chevron, Ford, Facebook, Deloitte and Walmart.

"Congress is considering legislation that can help address global corruption and tax evasion," noted LeCompte.

Legislation currently under consideration by the US Congress could help address the money laundering problem. Representatives Carolyn Maloney (D-NY) and Peter King (R-NY) introduced the Corporate Transparency Act (HB3089) in the House. Senators Ron Wyden (D-OR) and Marco Rubio (R-FL) introduced the companion Senate bill (S1717). The legislation would create a registry for the true owners of shell companies.

Last week 24 US Attorneys General wrote Congress asking for legislation like the Corporate Transparency Act.   

Over 20 State Attorneys General Call for Shell Company Transparency

By Lydia Andrews

24 State Attorneys General wrote to Congress supporting action to disclose the actual owner of a shell company to law enforcement. "Anonymous" shell companies can be used to hide the identity of the owner.

"Shell companies are used by corrupt government officials to steal money from their people and hide the identities of people involved in the modern day human slave trade," stated Jubilee USA Executive Director Eric LeCompte who serves on United Nations financial expert groups.

The Attorneys General letter raises concerns of how shell companies are sometimes used. "The use of anonymous shell companies by those engaged in human trafficking, drug dealing, and other crimes, allows criminals to launder and spend money attained through criminal activity without accountability," wrote the Attorneys General.

"Shell companies provide vehicles for tax evasion and corruption that contribute to an annual trillion dollar loss to developing world," said LeCompte.