Considering the Consequences

The Development Implications of Initiatives on Taxation, Anti-money Laundering and Combating the Financing of Terrorism

image of Considering the Consequences
What have been the consequences of recent regulatory initiatives on international financial centres in small countries? This study of three small Commonwealth countries – Barbados, Mauritius and Vanuatu – suggests that the costs of implementing these new standards have exceeded any identifiable benefits for the countries concerned.

Moreover the main factor explaining the adoption of the new standards, in all three countries, is the fear of the consequences of being blacklisted by international organisations in the event of non-compliance, rather than any identified benefit in terms of increased competitiveness.

The authors consider how policy on anti-money laundering should be developed in the future, taking into account the particular concerns of small developing countries.

The book will be of interest to all those engaged in setting international standards for financial regulation, and those regulating the finance industry in both large and small countries.



Case Study Synthesis, Conclusions and Future Directions

This final chapter presents a synthesis of the results from the preceding case study reports from Barbados, Mauritius and Vanuatu. It broadly considers the costs and benefits of enhancing the regulatory regime for international financial services in the public and private sectors for these three countries, and draws out some general implications for the international financial centres under consideration. The authors end by forming a number of overall conclusions and ask readers to consider the importance of further research to assess the developmental impact of recent international tax and AML/CFT initiatives to the much larger number of IFCs worldwide.


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