Anti-money laundering, suspect wealth and development

This chapter considers the development of small state financial centres, and identifies some of the key ongoing development challenges that they face. It seeks to provide contextual backdrop of their different development journeys from barter-based economies through to - in some cases - world leading service centres. It considers some of the deep-rooted international criticisms about offshore jurisdictions, as well as their recent compliance with some ever-developing international AML standards – such as beneficial ownership registers. The chapter contends that the development field has much to learn about offshore jurisdictions, in particular: their role and status in the global economy; but also how their own unique development circumstances may provide explanatory context to their levels of compliance, or otherwise, with internationally accepted standards. It also highlights that, contrary to the view that offshore centres facilitate problems elsewhere or ‘onshore’, misconduct within offshore jurisdictions can have ravaging effects therein – again, something that often is omitted from discussion. It leaves the reader with some instructions as to further research areas.