The Jubilee Blog

White House Hosts Democracy Summit and Highlights Global Anti-Corruption Commitments

Treasury Releases Draft Rule Improving Transparency for "Anonymous" Shell Companies

By Olivia Engling

More than 100 leaders showcase initiatives to counter dictatorships, fight corruption and promote human rights at a virtual summit the White House hosts December 9-10.

“The White House meetings are incredibly important as we must make sure that pandemic relief aid gets to the people who need it most around the world,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Democracy and civic participation are powerful forces that can prevent corruption and hold leaders accountable during a crisis."

In advance of the summit, the US released a strategy to counter corruption.

“A critical part of the US anti-corruption strategy is stopping tax evasion and avoidance at home and abroad,” added LeCompte.

The US strategy follows a National Security Study Memorandum that President Biden issued to lead efforts to strengthen transparency for the US and international financial system.

On Wednesday, Treasury released a draft rule to enforce higher transparency in shell companies. The rule comes after Jubilee USA Network worked for more than 10 years on legislation that requires companies to disclose their true owners. The Corporate Transparency Act passed in January and Treasury shared the draft enforcement rule ahead of the White House summit.

“Treasury’s transparency rule takes us closer to ending the use of anonymous shell companies to support corrupt regimes and criminal networks,” shared LeCompte.

Jubilee USA organized nearly 300 religious, human rights, labor and environmental organizations to advocate that the Administration uses its voice in the G20, G7, IMF and United Nations to promote transparency and accountability in COVID crisis relief measures.

“Corruption is always an enemy of poor and vulnerable people," stated LeCompte. "For more than 20 years, we've worked with Republican and Democratic Administrations to strengthen transparency and promote citizen empowerment in the debt relief and aid we've won for developing countries."

The Biden Administration announced a second summit in a year's time to evaluate the implementation of the summit commitments.

Global Pandemic Aid for Developing Countries is Focus of High-Level Event

By Mahati Kalaparthy

On Wednesday, a high-level panel explores the role of IMF emergency currency or Special Drawing Rights in pandemic recovery. The event, Special Drawing Rights and Global Pandemic Recovery, is convened by Jubilee USA Network and features Ambassador Sam Brownback, former US Senator and US Ambassador at Large for International Religious Freedom, Africa Union Ambassador Hilda Suka-Mafudze and President of Bread for the World, Reverend Eugene Cho.

“We need to do more to address the health and economic crises spurred by the coronavirus," shared Jubilee USA Executive Director Eric LeCompte. LeCompte will introduce and moderate the panel. “The event focuses on a type of aid that countries can use for pandemic recovery.”

In August, the IMF issued $650 billion in Special Drawing Rights (SDRs) or emergency currency for countries to address the coronavirus crises. More than $400 billion of the aid went to wealthy economies, with the US receiving $113 billion. Wealthy countries can transfer their unused SDRs to countries in need.

“Already this aid is making a difference for countries responding to the crisis,” added LeCompte. "Wealthy countries can share the SDRs they won't use with developing countries."

The IMF accepts SDRs from countries to finance zero-interest loans for the poorest countries. Another IMF vehicle under development will accept SDR contributions to assist developing small states and vulnerable middle-income countries. Recent research released by Jubilee USA Network and LATINDADD determined the emergency currency can help overcome pandemic-related weaknesses in 24 Latin America/Caribbean countries.

To receive a link to ask questions and virtually attend, "Special Drawing Rights and Global Pandemic Recovery," register here. Alternatively, you can join through Facebook Live: https://www.facebook.com/jubileeusa/

Read about Jubilee USA's research on SDRs and pandemic challenges facing Latin and Caribbean countries here.