China now has significant new leverage to fight against tax evasion abroad, as it joins a US agreement on sharing bank account information.
The US Foreign Account Tax Compliance Act takes effect on Tuesday.
China has signed the agreement with the U.S. to be able to share information of Chinese nationals' offshore bank accounts in the United States.
That allows the Chinese government access to such information as account identity, addresses, deposites, and balance details.
The move is expected to help the Chinese government in its on-going campaign against corruption.
Tax-evasion abroad and money laundering are two of the most serious problems as corrupt officials transfer and hide illegally-gained wealth overseas.
For more on this, we are joined on the line by our financial commentator Cao Can.
Questions:
1. Does this agreement cause alarm for those officials who have hidden wealth in the States?
2. Earlier this year, Swiss banks collectively vowed to open a crack in their own banking secrecy rules to help fight international tax evasion. Has that helped the Chinese government's fight against corruption? Are you optimistic that these moves could make a difference?
3. Is there any legitimate concern to national financial security when it comes to open bank accounts to foreign governments? Any good example of practice to follow?
CRI's financial commentator Cao Can.
