Considering the Consequences
The Development Implications of Initiatives on Taxation, Anti-money Laundering and Combating the Financing of Terrorism
What have been the consequences of recent regulatory initiatives on international financial centres in small countries? This study of three small Commonwealth countries – Barbados, Mauritius and Vanuatu – suggests that the costs of implementing these new standards have exceeded any identifiable benefits for the countries concerned.
Moreover the main factor explaining the adoption of the new standards, in all three countries, is the fear of the consequences of being blacklisted by international organisations in the event of non-compliance, rather than any identified benefit in terms of increased competitiveness.
The authors consider how policy on anti-money laundering should be developed in the future, taking into account the particular concerns of small developing countries.
The book will be of interest to all those engaged in setting international standards for financial regulation, and those regulating the finance industry in both large and small countries.
Contents
Foreword
List of abbreviations
Summary
1. Introduction
1.1 Rationale for the Study
1.2 Design and Methodology of the Report
1.3 Structure of the Report
2. The Barbados International Business and Financial Services Sector
2.1 Origins and Development of the IFS Sector in Barbados
2.2 The Importance of the IFS Sector in Barbados
3. Regulation of the Barbados International Business and Financial Services Sector
3.1 Regulation and Supervision of the IFS Sector pre-1998
3.2 Emergence and Evolution of the post-1998 Regulatory Regime for IFS
4. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Barbados
4.1 Incremental Costs of Adopting New International Regulatory Standards
4.2 Incremental Benefits of Enhanced IFS Regulation and Supervision
4.3 Overall Assessment of Net Benefits Accruing from the Adoption of New International Regulatory Standards and Strengthening the Regulatory Regime
5. Overall Conclusions for Barbados
6. Development of the IFS Industry in Mauritius
6.1 Inception and Early Regulation of the IFS Industry
6.2 Development of the Mauritian IFS Industry during 1992-98
6.3 Post-1998 Developments Affecting the Mauritian IFS Industry and its Regulation
7. Importance of the IFS Industry in the Mauritian Economy
7.1 Introduction
7.2 The Financial Services Sector
8. Regulation and Supervision of the IFS Industry in Mauritius
8.1 The Pre-2001 Regulatory Framework
8.2 The Post-2001 Regulatory Framework for the IFS Industry
9. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Mauritius
9.1 The Quantifiable Incremental Costs of New AML/CFT Regulation
9.2 Qualitative Assessment of Costs and Benefits
9.3 Overall Conclusions from the Analysis of Survey Findings
10. The International Financial Services Sector in Vanuatu
10.1 Introduction
10.2 Origins and Development of the IFS Sector in Vanuatu
10.3 The Importance of IFS to the Vanuatu Economy
11. Regulation and Supervision in Vanuatu
11.1 Structure of IFS Regulation and Supervision
11.2 Emergence/Evolution of the Post-2000 Regulatory Regime for IFS
12. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Vanuatu
12.1 Incremental Costs of Adopting New International Regulatory Standards
12.2 Incremental Benefits of Enhanced IFS Regulation and Supervision
12.3 Overall Assessment of Net Benefits Accruing to Vanuatu from Adoption of New International Regulatory Standards and Strengthened Regulatory Regime
12.4 Conclusions and Future Implications of Current International Regulatory Initiatives for Vanuatu
13. Case Study Synthesis, Conclusions and Future Directions
13.1 Costs and Benefits to the Public Sector in Barbados, Mauritius and Vanuatu
13.2 Costs and Benefits to the Private Sector in Barbados, Mauritius and Vanuatu
13.3 General Implications for the International Financial Centres
13.4 Conclusions and Further Directions
References and Bibliography
Annex
Index
Reviews
‘...this book is a valuable resource. It is well written and cogently argued.’
‘...the study provides valuable data and policy discussions of some critical issues.’
Tax Notes International, 12 January 2009
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