G-20 wants all nations to sign Convention on money laundering
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"We
call upon all countries to join the Global Forum on transparency and to
sign on the Multilateral Convention on Mutual Assistance...to combat
money laundering and the financing of terrorism and proliferation of
weapons of mass destruction," said the communique issued after G-20
meeting of Finance Ministers and Central Bank Governors in Washington on
Saturday.
G-20
is a grouping of rich and developing countries. The Multilateral
Convention on Mutual Administrative Assistance facilitates sharing of
tax information among the member countries.
India
for long has been pressing for automatic exchange of information among
the countries to deal with the menace of money laundering and terror
financing.
"India
believes that Automatic Exchange of Information is one of the most
effective ways to improve voluntary tax compliance and decrease tax
evasion and there is a need to make it obligatory," Finance Minister
Pranab Mukherjee had earlier said at the ministerial meeting.
The
G-20 also supported the renewal of the mandate of Financial Action Task
Force (FATF), which is an inter- governmental body formed to frame
policies to combat money laundering and terror financing.
The Communique said protecting investment was crucial for the global recovery and reaffirmed commitment to avoid protectionism.
It
said the growth expectations for 2012 remain moderate on the back of
constrained consumption and investment growth and volatility in
financial markets.
The
recent economic developments point to the continuation of a modest
global recovery followed by some significant policy action, the
Communique said, adding that the risk to global economic growth has
started to recede.
"High
levels of public and private indebtedness, the need for structural
reforms, insufficient global rebalancing, and persistent unemployment
and development gaps continue to weigh on medium-term global growth
prospects," it said.
In
the context of high unemployment and indebtedness in many countries,
Communique said "supporting growth and job creation, structural reforms,
restoring medium-term fiscal sustainability and promoting global
rebalancing remain at the core of our commitments".
It
said: "We remain committed to take the necessary actions to secure
global financial stability. This effort... shows the commitment of the
international community to safeguard global financial stability and put
the global economic recovery on a sounder footing."
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