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Offshore centres face EU threat

Posted: 30 May 2008

According to a report in the Financial Times a new international ‘white list' of financial centres, those deemed by the EU to have complied with anti money laundering controls, has sparked considerable controversy by excluding a number of well-known jurisdictions.

The EU report includes Russia, South Africa and various other emerging markets but excludes Bermuda, Cayman and the BVI. The Channel Islands and the Isle of Man were given intermediate status meaning that EU member states may consider their money laundering standards to be equivalent. The fear is that those domiciles that are not on the list could be find it more difficult doing business with EU countries in the future.

One noticeable feature of the list is that excludes offshore centres that are closely connected with the UK. Officials in Cayman in particular are said to be outraged that they have been excluded whilst countries like Russia have been included on the ‘white list'. The FT report quotes the UK Treasury as stating that this list is just a first draft and that there is a chance that those excluded this time will be included at some point in the future.

 

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