The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown

Research output: Contribution to journalJournal articleResearchpeer-review

During the financial crisis, G20 countries compelled tax havens to sign bilateral treaties providing for exchange of bank information. Policymakers have celebrated this global initiative as the end of bank secrecy. Exploiting a unique panel dataset, our study is the first attempt to assess how the treaties affected bank deposits in tax havens. Rather than repatriating funds, our results suggest that tax evaders shifted deposits to havens not covered by a treaty with their home country. The crackdown thus caused a relocation of deposits at the benefit of the least compliant havens. We discuss the policy implications of these findings.
Original languageEnglish
JournalAmerican Economic Journal: Economic Policy
Issue number1
Pages (from-to)65-91
Number of pages27
Publication statusPublished - 2014

Bibliographical note

Jel Classification: G21, G28, H26, H87, K34

ID: 99358941