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.
Johannesen, Niels, and Gabriel Zucman.
"The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown."
American Economic Journal: Economic Policy,
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
International Fiscal Issues; International Public Goods