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Headlines
The
rush to regulate
Recent
Concerns in the Offshore Industry
Money
Laundering - The role of the FATF
OECD
Moves Forward in Counteracting Harmful Tax Practices
Has
The Dot Com Fever Hit The Offshore World?
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The rush to regulate
 Some offshore centres see themselves as coming under increasing “attack” from outsiders, keen to brand them as poorly regulated. Changes proposed by the UK government´s Edward´s Report are in progress in the “British” centres.
A Review of Financial Regulation in the Crown Dependencies, in short known as the Edwards Report, was commissioned in 1998 by the British Home Office to investigate the business practices in the Crown Dependencies, such as in the Isle of Man and the Channel Islands, which are estimated to administer USD640 billion (GBP400 billion). The author of this 200 page report is the Treasury servant Mr. Andrew Edwards. The Edwards Report makes a number of recommendations to the reader.
If the UK government endorses the Report, the targeted Crown Dependencies, providing they want to maintain their good relationship with the Crown, will have to implement changes to end the facilitation of "tax dodging". Since Westminster has no jurisdiction over the Isles in such issues, it is up to the islands people (by referendum) or their governments to make this decision.
According to Edwards there are a number of issues he believe should be changed are:
a refusal to help foreign tax authorities investigate tax evasion on Jersey.
the use of thousands of secretly owned unsupervised companies on the Isle of Man.
the use of fictitious nominee directors in Guernsey and Sark.
Changes recommended by Edwards are:
The offshore companies to file public accounts.
The disclosure of ownership of the estimated 100 000 offshore companies to the islands regulatory authority.
Strict regulations of professional offshore advisors and company formation agents or their intermediaries.
Strict supervision of lawyers and accountants who plan and implement offshore as well as onshore structures and or other related services.
Strict regulation of trust companies focusing on transparency and documentation with regard to beneficiaries.
Stricter regulations and aberrance to anti money laundering directives.
Mandatory co-operation with British Inland Revenue.
He also notes a drastic increase in the use of offshore trusts, which will undoubtedly make them a target.
For more information please click here:
http://www.official-documents.co.uk/document/cm41/4109/4109.htm
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