Corruption — A perennial threat to society

The safe parking of funds in Shell Companies accumulated through corrupt practices and tax evasion is a global phenomenon. The problem came into sharp focus in many countries during the economic recession of 2007-2008,drawing the attention of the powerful countries to the negative fallout of secrecy laws, regulations and innovative methods of banks to seek clients and provide safe havens for their ill-gotten wealth. The wide network of the Shell Companies hiding treasures of tax evaders, drug dealers and corrupt politicians that had hit the USA and many other major economies of the world also came under rigorous scrutiny.

The banks and financial institutions involved in parking the tax evaded and illegitimate wealth were taken to task and laws and systems to oversee the cross border financial flows revamped. However, these measures proved ineffective to bring any reduction in the outflow of

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