It has been a torrid few years for the offshore finance industry. Intense scrutiny and criticism of its activities by a plethora of international agencies and national tax authorities has left many in offshore jurisdictions feeling rather battered.
The Channel Islands, for instance, underwent a UK government investigation in 1998, risked blacklisting by the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force, had their activities reviewed by the G7 countries’ Financial Stability Forum, were forced to enter into commitments by the European Union under its Savings Directive and were the subject of an International Monetary Fund (IMF) examination of their money laundering rules.
