Bank secrecy in offshore centres, capital flows and blacklisting: it takes two to tango

In April 2016 revelations in the Panama Papers spotlighted the role that banking secrecy - which is offered in so called tax and financial centres and territories - perform in the global economy. The facts have caused increasing concern that banking secrecy lies at the centre of an international web of illegal and criminal conduct. In parallel, several policymakers in advanced countries have emphasised the need for enforcing the blacklisting tool against the territories that breach transparency standards. But does blacklisting work?