Freer, more open and better integrated financial markets have benefited people and companies around the world. They have lowered the cost of capital and encouraged greater competition in the provision of financial services. But they have also facilitated distortions such as money laundering and tax evasion.

Financial cases such as Enron, WorldCom, Parmalat, Siemens, the investigations into BAE Systems and now the German tax evasion inquiry have revealed serious weaknesses in governance and market functions. Some of the issues are for companies to address. But governments must also play their role in setting the rules and enforcing standards.