Letters
Support the Caribbean against FATF
Dear Sir,
As a young Caymanian and a concerned citizen,I am compelled to speak out about our country's speediness tothrow itself in unchartered waters with the Financial Action TaskForce (FATF).
Despite congratulations from the FATF PresidentJose Maria Roldan, on our effort to enact counter-money launderinglegislation, Cayman remains blacklisted by the FATF.
The actions of the Organisation for EconomicCooperation and Development (OECD), and FATF in attacking low-taxjurisdictions, particularly small islands with no other meansof economic survival, undermine the ability of offshore jurisdictionsto develop and maintain their financial services industries.
The OECD and FATF do not have the best interestof these jurisdictions at heart, but in fact their own. Why shouldthese 15 jurisdictions have to back the OECD and FATF in theirendeavors to enhance their economies at the expense of our own?
The Cayman Islands has already issued moneylaundering regulations and enacted laws including those amendingthe Monetary Authority Law and the Proceeds of Criminal ConductLaw. Amendments have also been made to our Banks and Trust CompaniesManagement Law.
These regulations address customer identificationand record-keeping for a wide range of financial services. Amendmentsto some of these laws deal with the power of the financial supervisoryauthorities to monitor compliances with the regulations.
I am very concerned about the FATF's requirements,which may impose significant damage on our economy, as well asour neighbouring Caribbean countries.
The OECD and the FATF are threatening ourcountries with financial protectionism and other economic sanctionssimply because we have policies that are attracting foreign investors,thus putting a dent in their economies.
I realise that we have been a leader indeveloping anti-money laundering programmes throughout the Caribbean.Cayman has served as president of the Caribbean Financial TaskAction Force (CFATF) for some time, and has provided substantialassistance to neighbouring countries in the region.
We were also the first member to volunteerto participate in the mutual evaluations conducted by the CFATF,which was comprised of experts from Jamaica, Bermuda and Trinidad& Tobago in January 1995.
We have even demonstrated co-operation oncriminal law enforcement matters, and uncovered several seriouscases of fraud and money laundering, otherwise unknown to authoritesin the FATF member states.
In addition to all of this, we have closedfinancial institutions in the past few years on the basis of concernsabout money laundering.
Our region cannot prosper on the basic commoditiessuch as sugar and bananas, and as for Cayman, we rely on tourismand finance with nothing to fall back on.
This brings me to my ultimate question:why Cayman did not (would not) give its full support to the Caribbeanregion in the endeavors to team up and develop an "actionplan" to combat pressures from the OECD concerning tax practicesin the offshore financial sectors.
Why did we not come together as one andfight with one purpose and one goal? Don't get me wrong, I knowthat these jurisdictions remain blacklisted by the OECD and theFATF, but as brothers and sisters of the Caribbean, it is foolishto abandon one when in the long run, we are no further ahead thanwhen we first began.
Do we pose such a threat to the wealthynations of the world that they have to resort to penalising usfor enacting tax policies that are attractive to investors?
It appears that at this point, there isnot much hope for Cayman but to sit, wait and pray that we willbe overlooked, or simply comply to all, as it is quite evidentthat the OECD and FATF will not settle for less.
We have gone too far, too quickly, and turningback is not an option or a possibility, leaving us stuck betweentwo rocks and a hard place.
As the fifth largest financial centre, despitethe decision we have made previously, I feel that we should givethe region our full support in the efforts to fight against theOECD and the FATF.
Sebrina Rankine