Up Front
FCO approves of it's stepsto implement KPMG recommendations
The Caribbean Overseas Territories and Bermudahave now each provided a formal response to the recommendationsmade in KPMG's review of financial regulation, which was publishedon 27 October, 2000.
Noting the responses of the Overseas Territories, Economic Secretaryto the Treasury, Ms. Melanie Johnson, said: "The OverseasTerritories have now explained how they plan to respond to KPMG'srecommendations. I have made it clear that the establishment ofindependent regulatory authorities, of effective powers to assistinvestigations by overseas authorities, and of any necessary enhancementsto the laws and systems which combat money laundering are essentialelements in establishing properly regulated financial centresin the Overseas Territories."
"These overdue measures," Ms. Johnson said, "needto be in place by the end of September 2001. The Overseas Territoriesthemselves agreed when the review was published that these threepriorities should substantively be in place by then, and I expectfull delivery of their promises."
"I also expect to see KPMG's other recommendations implementedby the end of 2001," she said, adding that this was essentialif the Overseas Territories are to satisfy the international communityand standard-setting bodies that they conduct their financialbusiness according to international requirements.
In conclusion, Ms. Johnson said that the UK "fully supportsa number of international initiatives which make it clear thatcounter measures will be taken against persistently non-compliantoffshore financial centres."
Parliamentary-Under Secretary of State for Foreign and CommonwealthAffairs with responsibility for the Overseas Territories, BaronessPatricia Scotland said she welcomed the high level commitmentsfrom the Caribbean Overseas Territories and Bermuda to addressthe KPMG recommendations.
Noting that financial services is a competitive sector, BaronessScotland said the UK Government is keen on the Overseas Territoriesattracting quality business, seeking a well-regulated environment,based on the prevailing rules, laws and good practice internationally.
The UK Government, she promised, will continue to provide adviceand assistance to help the six Overseas Territories concernedto achieve full compliance with the principles and guidelinesin the KPMG report.
"There will be a process of regular review and dialogue overthe next twelve months to ensure the published implementationplans are substantially implemented by the end of 2001,"Baroness Scotland said.