First Impressions

They say first impressions count and maybe that’s what weighs so heavily against the Crown Dependencies Offshore Finance Centres (OFCs). Historically these OFCs were used for some fairly shady transactions. However, in the last ten years regulatory standards in British OFCs have been reached that are unparalleled in many ‘onshore’ jurisdictions.

I attended a conference yesterday entitled ‘Offshore in Crisis’, run by BakerPlatt in Jersey, and had prepared myself for an afternoon of gloomy predictions accompanied by much wailing and head shaking. I was pleasantly surprised to find that the event was enormously positive.

During two plenary sessions, one entitled “Threats” and the other “Opportunities”, attendees were requested to outline what they envisaged for the future of Jersey and other British OFCs. One issue was that of public perception. Lumbered with our past we don’t seem able to escape the trauma of our childhood as a recalcitrant jurisdiction. The reality is that our regulatory environment is stronger than many of the jurisdictions that criticise us.  Many felt that we are poorly represented and that we should join forces with other similar territories to plead our case in a more coherent and forceful way with the idea of a single office for the Crown Dependencies as a possible solution.

Necessity is the mother of invention and perhaps the Crown Dependencies can seize this opportunity to show the world that well regulated, low tax environments are necessary and vital to a thriving, diverse global economy.  Some felt that offshore needs to fight the stigma of its past, and proclaim its achievements and its positive benefits more forcefully. Many feared the impact of anti-money laundering legislation and other reforms, but they have been proved wrong. Perhaps Jersey, with a forward-looking regulator and the ability to provide a top-class but competitive service, should be able to turn the critics around and blaze a trail for other well regulated offshore jurisdictions to follow.

Further information:

Look at the KYC360 Factbook ratings for Jersey, Guernsey and the Isle of Man and compare them to 'on shore' jurisdictions. If  you're not a member join now for free.

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