Offshore Financial Centres and the Law: Suspect Wealth in British Overseas Territories (The Law of Financial Crime)

This book considers the ability of island jurisdictions with financial centres to meet the expectations of the international community in addressing the threats posed to themselves and others by their innocent (or otherwise) facilitation of the receipt of suspect wealth. In the global financial architecture, British Overseas Territories are of material significance. Through their inalienable right to self-determination, many developed offshore financial centres to achieve sustainable economic development. Focusing on Bermuda, Turks and Caicos, and Anguilla, the book concerns suspect wealth emanating from financial crimes including corruption, money laundering and tax evasion, as well as controversial conduct like tax avoidance. This work considers the viability of international standards on suspect wealth in the context of the territories, how willing or able they are to comply with them, and how their financial centres can better prevent receipt of suspect wealth. While universalism is desirable in the modern approach to tackling suspect wealth, a one-size-fits-all approach is inappropriate for these jurisdictions. On critically evaluating their legislative and regulatory regimes, the book advances that they demonstrate willingness to comply with international standards. However, their abilities and levels of compliance vary. In acknowledging the facilitatively harmful role the territories can play, this work draws upon evidence of implication in transnational financial crime cases. Notwithstanding this, the book questions whether the degree of criticism that these offshore jurisdictions have encountered is warranted in light of apparent willingness to engage in the enactment and administration of internationally accepted laws and cooperate with international institutions. Cover Half Title Series Page Title Page Copyright Page Dedication Page Contents Foreword Preface Cases Legislation, regulations and treaties Abbreviations 1 Introduction and conceptual framework 1.1 Overview 1.2 Approach and chapter structure 1.3 Background, topicality and contribution to research 2 Concerns about economic crime and suspect wealth 2.1 Introduction 2.2 Why is economic crime an international concern? 2.3 Concerns about corruption 2.4 Concerns about money laundering and terrorism financing 2.5 Concerns about tax misconduct 2.6 Economic crime and its ambivalence 2.7 Conclusion 3 Offshore financial centres and the British Overseas Territories 3.1 Introduction to ‘offshore’ 3.2 The British Overseas Territories: law, governance and development as offshore financial centres 3.3 Perceptions about “sunny places for shady people” 3.4 Capacity issues in the overseas territories 4 Bermuda 4.1 Bermuda: an overview 4.2 Economy and development as a financial centre 4.3 Implications in economic crime cases and the Paradise papers 4.4 More sinned against than sinning? Bermuda and its critics 4.5 Analysis of Bermuda’s legal and regulatory response to economic crime and suspect wealth 4.5.1 Anti-bribery 4.5.2 Anti–money laundering and counter-terrorism financing, including FATF compliance and national risk assessments 4.5.3 Company law, beneficial ownership and transparency 4.5.4 Economic substance 4.5.5 Tax information exchange and cooperation 4.6 Development concerns 4.7 Conclusion 5 The Turks and Caicos Islands 5.1 TCI: an overview 5.2 Economy and development as a financial centre 5.3 Domestic corruption and impact on development 5.3.1 Trial of former ministers 5.3.2 Civil recovery 5.4 Implication in international economic crime cases 5.5 Analysis of TCI’s legal and regulatory response to economic crime and suspect wealth 5.5.1 Anti-bribery 5.5.2 Anti–money laundering and counter-terrorism financing, including FATF compliance and national risk assessments 5.5.3 Company law, beneficial ownership, economic substance and tax transparency 5.6 Development concerns and relationship with the UK 5.7 Conclusion 6 Anguilla 6.1 Anguilla: an overview 6.2 Economy and development as a financial centre 6.3 International concerns and implication in financial crime cases 6.4 Analysis of Anguilla’s legal and regulatory response to economic crime and suspect wealth 6.4.1 Anti-bribery 6.4.2 Anti–money laundering and counter-terrorism financing, including FATF compliance and national risk assessments 6.4.3 Company law, beneficial ownership, transparency and tax information exchange 6.4.4 Economic substance 6.4.5 Remaining legal considerations and constitutional reform 6.5 Development concerns 6.6 Conclusion 7 Privacy and increasing transparency: what does it mean for the future of offshore financial centres? 7.1 Introduction 7.2 The right to privacy 7.3 Confidentiality 7.4 Legal privilege 7.5 Confidentiality norm in offshore financial centres – and the limits of confidentiality 7.6 Bank secrecy 7.7 Transparency offshore and the ‘nothing to hide’ conjecture 7.8 International transparency standards: beneficial ownership registers and information exchange 7.9 Remaining paradoxes 7.10 Implications for the British Overseas Territories 7.11 Conclusion 8 Conclusion 8.1 Bermuda 8.2 Turks and Caicos Islands 8.3 Anguilla 8.4 Implications for the future of these jurisdictions Index "This book considers the ability of small jurisdictions with financial centres to meet the expectations of the international community in addressing the threats posed to themselves and others by their innocent, or otherwise, facilitation of the receipt of suspect wealth. In the global financial architecture, British Overseas Territories are of material significance. Through their inalienable right to self-determination, many developed offshore financial centres to achieve sustainable economic development. Focusing on Bermuda, Turks and Caicos, and Anguilla, the book concerns suspect wealth emanating from financial crimes including corruption, money laundering and tax evasion, as well as controversial conduct like tax avoidance. This work considers the viability of international standards on suspect wealth in the context of the territories; how willing or able they are to comply with them; and how their financial centres can better prevent receipt of suspect wealth. While universalism is desirable in the modern approach to tackling suspect wealth - a one-size-fitsall approach is inappropriate for these jurisdictions. On critically evaluating their legislative and regulatory regimes, the book advances that they demonstrate willingness to comply with international standards. However, their abilities and levels of compliance vary. In acknowledging the facilitatively harmful role the territories can play, this work draws upon evidence of implication in transnational financial crime cases. Notwithstanding this, the book questions whether the degree of criticism that they have encountered is warranted in light of apparent willingness to engage in the enactment and administration of internationally accepted laws, and cooperate with international institutions"-- Provided by publisher Inhaltsverzeichnis: Introduction and conceptual framework -- Concerns about economic crime and suspect wealth -- Offshore financial centres and the British overseas territories -- Bermuda -- The Turks and Caicos Islands -- Anguilla -- Privacy and increasing transparency : what does it mean for the future of offshore financial centres? -- Conclusion