“investigations are ongoing into over $100 million worth of financial crime involving the Anguilla financial services at the moment”


(Anguilla, BWI) - H.E Alistair Harrison in keeping with his promise to hold regular press conferences, convened the press at Government House on May 19, 2009 for his second, since taking office in April.

In light of the Attorneys-General from the UK’s Overseas Territories meeting in Anguilla next week, the Governor said he chose to hold the Press Conference one week earlier than he otherwise would have done, according to his plan to do so monthly.

In his opening remarks he reminded his audience that the visit by the British Attorney-General Baroness Scotland is the first by a British Cabinet Minister to Anguilla “for many years” and that she will be accompanied by his boss, the Director of the Overseas Territories Department in the Foreign Commonwealth Office (FCO).

Providing an update on his activities since taking office, the Governor said that he has been quite busy and has worked his way about half way through his programme visits to the constituencies, accompanied by the member of the House of Assembly in each case.

“I have toured most government departments; I have visited the prison and the young offenders centre; the airport; the seaports and the public library; and I have visited many of the tourist facilities which are so important to the economy” he stated.

In an apparently engaging tone, the Governor shared some of what he says is his plan to proceed in his job and said that at this early stage his thoughts are not set in stone, and that he would very much welcome feedback from the public.

Of no surprise given the attention that Caribbean Territories have been receiving in relation to their financial industry, particularly in the offshore sector, the Governor said that he considers “Financial Regulation” to be the most urgent area of the five within his responsibility, namely; defence, external relations, internal security, good governance and the oversight of financial regulation.

Drawing a strong reference to the current global financial crisis, he said that there is a greater global spotlight on “so-called” tax havens, adding, “we can agree with the concept or not, but we have to live with the fact - the G20, the OECD and other international bodies are taking an ever greater interest in jurisdictions that are open to financial business from the rest of the world.”

The OECD refers to the Organisation for Economic Cooperation and Development which is a group of 30 wealthy nations who issue a “blacklist” of jurisdictions (offshore financial centers) they term “tax havens” and deem not cooperative in exchanging tax information. Some in the US have estimated that as much as $100 billion in tax revenues are lost each year due to offshore banking. The administration of newly elected president Barack Obama recently endorsed far-reaching legislation to crack down on such jurisdictions, shortly after returning from the 5th Summit of the Americas, Port of Spain, Trinidad held in April, a blow that was perhaps not expected so soon by several of his counterparts.

Anguilla appears on OECD’s gray list -those who say they will but have yet to act to comply with rules on sharing tax information. The list includes: Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Cook Islands, Costa Rica, Dominica, Gibraltar, Grenada, Liberia, Liechtenstein, Malaysia, Marshall Islands, Monaco, Montserrat, Nauru, Netherlands Antilles, Niue, Panama, Philippines, St. Kitts and Nevis, St Lucia, St Vincent and Grenadines, Samoa, San Marino, Turks and Caicos Islands, Uruguay and Vanuatu.

In his remarks Governor Harrison, said, “this greater international interest in what jurisdictions like Anguilla are doing represents not a threat but a major opportunity for Anguilla.” A view perhaps not shared by many in locations that are blacklisted.

He continued:

“Anguilla is about to achieve a significant milestone in its history as it plans to bring into law the newly drafted Proceeds of Crime Bill and a clutch of accompanying legislation. This legislation will be the cornerstone of Anguilla's efforts to achieve a "compliant" rating from the Caribbean Financial Action Task Force, which is in the process of undertaking its mutual evaluation exercise for Anguilla. The passing into law of this legislation will help Anguilla achieve the internationally recognised 40 + 9 Financial Action Task Force recommendations. This will enable Anguilla to show how serious we are in the global fight against money laundering and terrorist finance. And this is no theoretical goal - investigations are ongoing into over $100 million worth of financial crime involving the Anguilla financial services at the moment - mainly involving money that is passing through Anguilla from other jurisdictions. The PoC Bill will not create any new offences, but it will enable the relevant authorities to recover the proceeds of criminal activity much more easily. Current legislation does not offer adequate protection from international money launderers and terrorist financiers.

He voiced the opinion that the new Bill will attract legitimate business away from other jurisdictions with “less good regimes” and enhance the island’s reputation.

His remarks continued:

“I am aware that there is some concern that the Bill will place burdens on small businesses with the risk of criminalisation of those who are unable to meet them. I don't want to downplay the importance for all businesses to meet the standards, and I know that there are always problems of adjustment to a new regime. But the Bill does not create any new offences, and I hope that the inconveniences will be commensurate with the gains to everyone. I am confident the benefits will outweigh the costs. In particular, businesspeople who suspect that one of their clients is handling illegitimate money can report that suspicion immediately for investigation instead of risking being ensnared by the law after the event. And the new Bill and its attendant regulation should also make the law in this area much clearer, which is also good for the layman and for business.

“My role in the regulation of the financial services industry here is of course played with the help of many others - the Government of Anguilla and in particular its Finance Ministry; the Financial Services Commission; and the Financial Intelligence Unit in the police. I look forward to working with all of them over the next three years to make Anguilla an ever more attractive destination for legitimate financial business; and to make it ever more secure against the money launderers and terrorist financiers of this world. To paraphrase John Donne again - never send to know for whom the bell tolls: it tolls for them.”