New Zealand has edged out Singapore to take top spot for ease of doing business in the World Bank’s latest rankings, but money-laundering experts warned the honor masked the darker side of the Pacific nation’s vulnerability as a channel for illegal funds.
In its annual Doing Business report released on Tuesday, the World Bank cited tax improvements as a key reason for moving New Zealand to top spot from its previous runner-up position.
The nation also topped the World Bank’s indicator on ease of company formation, a particularly worrisome aspect for anti-money laundering efforts and one that has raised some alarm bells given the use of shell companies to launder funds.
Companies registered in New Zealand were among a network of opaque firms that were used to dupe Chinese investors out of millions of US dollars in a pyramid scheme called “EuroFX” earlier this year.
New Zealand also came under fire this year when the Panama Papers showed the nation’s shell companies and trusts were touted as a secretive way to channel funds around the world, including for tax-avoidance purposes.
“You want a jurisdiction that has a clean reputation, but doesn’t ask many questions when you’re setting up a company there,” said Jason Sharman, an Australia-based money laundering expert and coauthor of the book Global Shell Games.
New Zealand Minister for Economic Development Steven Joyce said the government is aware of the risks and is taking steps, such as bringing anti-money laundering regulations in line with international standards.
The New Zealand Ministry of Justice is also “looking into” the feasibility of a registry that shows the beneficial owners behind companies.
“It’s all about the management of risks and we’ve taken a number of steps,” Joyce said in a telephone interview yesterday.
Others said the risks are not being managed well enough.
“Anyone who wants to … hide dirty money, just needs a local director, a physical address and NZ$45, and in a few minutes they’ve got just what they need to do it with,” said Ron Pol, the Wellington-based head of anti-money laundering firm AML Assurance.
The World Bank report tracks regulatory changes in 190 nations for businesses throughout their life cycle — from the ease of business start-up regulations and getting credit to property rights.
It said a record 137 economies undertook reforms to make it easier to start and operate businesses in the past year, with more than 75 percent of the changes occurring in developing nations.
The World Bank says better performance in the Doing Business rankings generally equates to lower levels of income inequality and reduced poverty.
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has
PRICE SPREAD: Oil trading under the Brent futures contract is giving the US a hefty edge in pricing, increasing the rush to secure cheap fuel as winter approaches Asian demand for US oil is rising as the energy crisis boosts prices for other crudes that are priced against the global Brent futures contract. China and other Asian buyers have been snapping up supertankers of US oil for delivery next month and seeking more for December, some traders have said. Most buyers are seeking US grades that had recently slumped to the lowest levels in more than a year, with an added incentive after Beijing awarded millions of tonnes of crude oil import quotas. A wide spread between Brent and West Texas Intermediate (WTI) oil futures is accommodating higher US crude
RSS