OECD (Syllabus: GS Paper 2 – IR)

Context: The Organisation for Economic Co-operation and Development (OECD) recently released a possible framework for enhancing tax transparency in real estate, which is seen as a source of leakage and money laundering, and also allow for sharing of tax-related information received from other countries for “non-tax purposes”.

Organisation for Economic Co-operation and Development (OECD)

• About: It is an international organisation with 38 member countries.
• Founded in: 1961 to stimulate economic progress and world trade.
• Headquarter at: Paris, France.
• Members: The majority of OECD members are high-income economies with a very high Human Development Index (HDI)and are regarded as developed countries. 
• Aim: Fostering economic development and cooperation and fighting poverty through the promotion of economic stability.

Money Laundering

• UN convention on money laundering (Vienna convention) defines money laundering as the conversion or transfer of property, knowing that such property is derived from any offense(s), for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in such offense(s) to evade the legal consequences of his actions. In simple terms: It is a process of converting illegally earned money into legitimate money.