Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Empirical Finance C16-V1
We use recently released bilateral locational banking statistics of the BIS to show the full circle of international tax evasion via tax havens. White-washed money from tax havens is withdrawn from banks in non-havens if an information treaty is signed. This complements the stylized fact of such a reaction on outbound flows into tax havens. We find different time lags and other plausible structures in these reactions and a puzzling decline of the effect of treaties on capital flows over time.