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.



Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Vanuatu

The public sector in Vanuatu has had to recruit new staff and retrain existing staff to meet the new international regulatory standards. The private sector has also had to recruit new staff and retrain existing staff to fulfil the new due diligence and suspicious transactions reporting requirements. Where new staff members have been recruited, new office space has had to be allocated and additional hardware and software systems have had to be bought or licensed. Some offices have also bought new IT systems such as ‘World Check’ in order to be able to satisfy the new international regulatory standards. Overall administrative overheads have increased for both the private and public sectors in Vanuatu.


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