Offshore News: December 2008
1.12.2008 In the end of November, the joint meeting of the Council of Europe Committee of Experts of the Evaluation of Anti-Money Laundering Measures and Financing of Terrorism and the Financial Action Task Force (FATF) was organized where the typologies of money laundering and terrorist financing were discussed.
The meeting, which was held in Monaco, allowed regulatory authorities and law enforcement experts to share experiences and discuss their practice cases. They mainly discussed the ways used by money launderers to operate through the money service businesses, securities industry and sports clubs, and examined the emerging trends and patterns in these sectors.
3.12.2008 Guernsey's Chief Minister announced that his government will play a constructive role in the review of financial supervision and international co-operation by the UK Dependencies and Offshore territories, which was announced by the UK government. By words of Lyndon Trott, this review will affirm high standards being achieved by Guernsey, and will not threat offshore jurisdiction's operations. Also, he said that the review will complement the IMF assessment planned to be carried out in January 2009. Mr. Trott and Chief Executive Mike Brown are going to meet with the UK Treasury to discuss the details of the review, to improve the cross-border co-operation and support in the context of financial crises involving financial services firms.
Mr. Trott admitted that the financial services in Guernsey jurisdiction are recognized for well regulated and transparent by the OECD, the Financial Action Task Force, and the Financial Stability Forum.
14.12.2008 The final version of Tax Information Exchange Agreement between the Isle of Man and Nordic countries of Greenland, Finland, Norway, Denmark and the Faroe Islands has come into effect, having been ratified by the parties. All the TIEAs will come into force on December 28, 2008, along with entering into force of jurisdiction's agreements with Sweden and Island, which were the last to notify the Isle of Man that they have completed their ratification procedures.
The Isle of Man concluded taxation and economic co-operation agreements with the members of the Nordic Council in October 2007, and ratified the agreements in March 2008. Upon the completion of the ratification procedures by the governments of the countries, the agreement between the Isle of Man and Greenland entered into force on April 11, 2008; the agreement with Finland entered into force on June 14, 2008: with the Faroe Islands – on August 23, 2008; with Norway – on August 23, 2008; and with Denmark – on September 26, 2008.
24.12.2008 Mauritius's Deputy Prime Minister and Finance Minister Rama Sithanen has defended Mauritius's status of a reliable offshore jurisdiction that should not be regarded as a 'tax haven'.
In talks with the OECD representative and the members of UK, France's and Germany's governments, the Minister reassured them of the integrity of the Global Business Centre in Mauritius, emphasizing that it has an “effective exchange of information mechanism”; also, he talked of jurisdiction's commitment to transparency and efficient legislation, regulated by the Financial Services Commission, and aimed at combating money laundering and terrorist activities.
The attempts of Mauritius government to promote the image of the country within the financial services sector and to satisfy OECD concerns follow the OECD proposal to implement tighter regulations for offshore finance centers.
Mauritius's most important steps to improve its reputation included the establishment of the Financial Services Commission and the Financial Services Promotion Agency, the Companies Act modernization and the introduction of a new Trusts Act.
