UK TreasuryPraises Overseas Territories For Progress On Financial Regulation
by Amanda Banks,
Tax-News.com, London
The UK Government has praised the progressmade by the Caribbean Overseas Territories - the British VirginIslands, the Cayman Islands, Anguilla, Montserrat and the Turksand Caicos Islands - and Bermuda in implementing the recommendationsof a KPMG report on finance sector regulation.
The report was commissioned by the UK andthe Overseas Territories in 1999, and was delivered in October2000. The three main priority areas highlighted in the reportwere: the adoption of comprehensive anti-money laundering legislation,the establishment of independent regulatory authorities, and enhancementof transparency and information exchange procedures with overseasregulators.
All six of the jurisdictions made a commitmentto move in these key areas by September 2001, and then to beginimplementing some of the lesser recommendations made by the internationalconsulting firm.
According to Ruth Kelly, Economic Secretaryto the Treasury, and Baroness Amos, Foreign Office Minister forthe Overseas Territories, their progress has been 'impressive'.
In a joint statement released on Thursdayof last week, the Treasury and Foreign Office ministers announcedthat:
'Better financial regulation is importantin ensuring that Britain's Overseas Territories maintain theirstatus as important financial centres. We congratulate them onthe progress they are continuing to make in implementing the recommendationsin the KPMG report to improve standards of financial regulation.'
The Ministers revealed that all of the jurisdictionsconcerned have enacted comprehensive anti-money laundering legislation,and that independent regulatory authorities are up and runningin all territories but Anguilla and the Cayman Islands, whichare planning to legislate on the matter in the first half of thisyear.
The progress report further states thatall of the UK's Overseas Territories, with the exception of Anguilla,have legislated to improve information exchange with foreign regulators,but that: 'Anguilla will be including such powers in the legislationto establish the independent regulatory authority'. The FCO andTreasury also praised the new Trust Act recently adpoted in Bermuda.
However, both Ms Kelly and Baroness Amoswarned that in addition to legislative measures, the necessaryhuman and financial resources will need to be allocated to thenew regulatory bodies in order to ensure that they are able tooperate effectively.