The United States ranks No. 1 on the recently updated Financial Secrecy Index (FSI), placing ahead of other jurisdictions on the list. Unfortunately, the FSI is not a sweepstakes that you want to win.
The FSI is a research index that examines how jurisdictions enable financial secrecy and their contribution to global financial secrecy. It also reflects the scale of financial services a jurisdiction provides to foreign investors. These two metrics are known as the “Secrecy Score” and the “Global Scale Weight.” The two measures are combined to calculate the final 'FSI Value,' which determines each jurisdiction's position on the index. In the case of the U.S., the FSI Value is 2,029. The number two competitor, Switzerland, was not even close, with an FSI Value of 1,220.
A Quick Look at the Top Ten
-
United States (2,029)
-
Switzerland (1,220)
-
Singapore (1,082)
-
Hong Kong (1,022)
-
United Arab Emirates (720)
-
Germany (686)
-
Luxembourg (651)
-
Netherlands (560)
-
Japan (538)
-
Guernsey (538)
And at the No. 141 position on the list is the territory of Montserrat, which ranks near the bottom of the index. A low ranking reflects its relatively limited contribution to global financial secrecy, rather than an absence of financial secrecy risks.
Why Does the United States Rank So High?
There are 20 “Secrecy Indicators” in the FSI. These indicators gauge everything from international legal cooperation, exchange of information, and account transparency, to compliance, golden visas, and more. The U.S. did create the Beneficial Owner Registry, which required documentation of company ownership through the Corporate Transparency Act (CTA), enacted in 2021. In 2025, the incoming administration narrowed the reporting requirements to certain foreign entities and exempted U.S.-created companies from the federal reporting requirements.
In 2018, the U.S. reached the number two position on the list. Its first foray into the No. 1 spot came in 2022. According to the Financial Accountability & Corporate Transparency (FACT) Coalition, the U.S. likely reached that position at that time due to weaknesses in anti-money-laundering safeguards, regulatory loopholes, and gaps in financial transparency requirements. The U.S. retained the top position in the latest index.
There is a fine line between tax avoidance and evasion. The former is legal, and the latter is not. Depending on your perspective, the U.S. position atop the index may be concerning or unsurprising. However, a jurisdiction’s financial secrecy ranking does not necessarily indicate that its financial activities are illegal.
Are you concerned about possible allegations of tax evasion or fraud by the IRS? We can help.
If you are concerned that some of your investments cross the line with the IRS, our legal group can help. For additional background on what constitutes tax fraud, see our free guide, Understanding Tax Fraud. Unlike the opacity around financial secrecy, tax fraud involves specific legal standards, including requirements related to intent.
Contact our experienced tax attorneys when you have questions about an audit, a questionable “best practice,” or potential tax evasion involving your financial activities. Getting legal help sooner makes a difference. Call us at 440-250-9709 or reach out to set up a consultation. We serve domestic and international clients from offices in Cleveland and Chicago.
