Financial association backs call for allies

Dr Richard Rahn, Director General for Global Economic Growth	Eduardo D’Angelo Silva, Director of CIFSA.

Monday,  January 30, 2006

At a recent business conference, the Director General for Global Economic Growth, Dr Richard Rahn, challenged the private sector in the Cayman Islands to not rely on Government and do more to combat the adverse image of being a tax and money-laundering haven by making allies. 

The Cayman Islands Financial Services Association (CIFSA) has taken up that challenge to collaborate with international think tanks, which may influence the policymakers of countries that may put pressure on international organisations such as the Organisation for Economic Cooperation and Development (OECD) for more regulation on offshore centres.

Dr Rahn said countries such as France, Germany and Italy have stagnated their economies by overtaxing and over regulation and they are looking for scapegoats. Cayman can recruit allies such as think tanks and powerful countries such as the US to increase pressure on international decision makers that will defend this country’s financial sector and its interests. 

“The private sector needs to become active in explaining to the world that the Cayman Islands has increased per capita income in the world by providing tax competition,” said Dr Rahn.

He explained that the country has helped to create jobs around the world and the money generated here is re-invested and its returns benefit people around the world and that message should be told. 

Dr Rahn noted that Cayman can recruit allies to defend this country’s financial sector and its interests. 

He said that as a small country, Cayman has very little impact on international initiatives that would increase regulation pressure on this jurisdiction such as the International Monetary Fund and the OECD.

However, Dr Rahn noted that it can get onside those in a better position to increase pressure on international decision makers that will defend this country’s financial sector.

The Director of CIFSA, Eduardo D’Angelo Silva said working with think tanks fits with the association’s mission.

“As an organisation which has as its key purpose to communicate the quality and integrity of the Cayman Islands Financial services industry, CIFSA fully supports the statement made by Dr Rahn”, said Mr Silva.

He explained that one of the reasons behind the launch of CIFSA in 2004, because the industry recognised that the Government here needed to be supported more in the area of international public relations. 

Mr Silva added CIFSA recognised early on that a good working relationship was necessary with international media organisations as well as local and international organisations of strategic importance.

“In fact we have been speaking with Dr Rahn for the past few months with a view to seeing how we could get more involved with international organisations that support the efforts of offshore jurisdictions such as the Cayman Islands,” he said.

“Organisations like the Centre for Freedom and Prosperity have been successful in getting the input of low tax jurisdictions on a stage where OECD based policymakers can consider them and so it is important to develop these relationships,” said Mr Silva.

shurna@caymannetnews.com

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