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.



Regulation and Supervision of the IFS Industry in Mauritius

As indicated earlier, prior to 2001 regulation of financial services was fragmented in Mauritius. Regulatory/supervisory responsibilities were shared by the Bank of Mauritius (BoM; for banks) and the Ministry of Finance (MoF), which had a dedicated department for the supervision of insurance services. In 1988, the Securities and Exchange Commission of Mauritius was set up to regulate the stock exchange and the securities industry, including authorised mutual funds and unit trusts. Offshore finance came under the purview of MOBAA, established in 1992. The idea of a single regulator for financial services was mooted in the 1994/5 Budget Speech and was studied by the Financial Services Reform Steering Committee in 1996. The idea was implemented partially in 2001, but went no further.


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