NCJ Number
187449
Journal
FBI Law Enforcement Bulletin Volume: 70 Issue: 2 Dated: Feburary 2001 Pages: 10-15
Date Published
February 2001
Length
6 pages
Annotation
Through international cooperation, the financial centers of the Channel Islands and the Isle of Man have adopted legislation and measures to counter money laundering and fraud in their jurisdictions.
Abstract
An "offshore" financial center is any financial center that provides financial services for a substantial number of nonresidents. In the last 15 to 20 years, the Channel Islands and the Isle of Man have blossomed as offshore financial centers due, in part, to their proximity to the United Kingdom, low taxes, and overall economic and political stability. Most experienced fraud investigators have viewed the Channel Islands and the Isle of Man as loosely regulated tax havens immune to inquiries from foreign authorities, which make the Islands the choice of criminals to launder their illegal gains; however, two recent reviews of the Islands' financial and legal sectors provide evidence to the contrary. The consensus of these reviews is that the Islands have a well-regulated financial industry, money laundering legislation in place, and a demonstrated willingness to cooperate with and provide assistance to foreign authorities. Over the years, the FBI legal attache in London has enjoyed excellent cooperation with the law enforcement agencies from the Islands. In recent years, a growing number of U.S.-initiated fraud and money laundering investigations with a nexus to the Islands have ensued. Furthermore, the Islands have adopted new legislation that requires financial institutions to report any suspicious activities to the police and creates criminal statutes for money laundering offenses. Former legislation required disclosure only when suspicious activities were related to drug trafficking or terrorism. 17 notes