IDEAS home Printed from https://ideas.repec.org/p/ecr/col095/42726.html
   My bibliography  Save this paper

An assessment of the challenges to Caribbean offshore financial centres: Saint Kitts and Nevis and Antigua and Barbuda

Author

Listed:
  • Jordan, Ava
  • McLean, Sheldon

Abstract

Offshore Shore Centres (OFCs) are generally small, low tax jurisdictions. In defining International Financial Centers (IFC’s) the International Monetary Fund (IMF) notes that there must be a large number of financial institutions functioning in a simplified regulatory environment, with low or no tax, and with the majority of its transactions initiated offshore. Regional Financial Centres (RFCs) are groups or blocks of countries, viewed as IFCs and which have specialties in the offshore financial business . Many Caribbean islands, including Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, the British Virgin Islands, the Caymans Islands, the Bahamas, Barbados, and Aruba, can be categorised as RFCs. In the early 2000s, the sector was thriving, and positively contributing to the foreign exchange inflows to these countries. In the aftermath of the 2008-2009 global financial crises, several regulatory jurisdictions have made attempts to strengthen their financial sector regulation, supervision, and risk management. The objective was to increase the resilience of financial institutions, and prevent another financial sector collapse in the future. Moreover, the regulators sought to restrict potential money laundering and the financing of terrorism, via the implementation of more strict anti-money laundering (AML), countering the financing of terrorism (CFT) and know-your-customer (KYC) regulations. Post the 2008-2009 financial crisis, several Caribbean countries, including the Bahamas, the Cayman Islands, Saint Kitts and Nevis and Saint Vincent and the Grenadines have been subjected to increased financial regulations by the international financial authorities. This has limited the growth of the offshore financial sector. This policy brief therefore aims to assess existing and potential threats to the Offshore Financial Sector to selected countries in the Caribbean, with the view of developing recommendations for addressing these challenges. Particular focus is placed on Saint Kitts and Nevis, and Antigua and Barbuda. Interviews were also conducted with stakeholders in other Caribbean countries to assess the wider implications for the subregion.

Suggested Citation

  • Jordan, Ava & McLean, Sheldon, 2017. "An assessment of the challenges to Caribbean offshore financial centres: Saint Kitts and Nevis and Antigua and Barbuda," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 42726, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col095:42726
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/42726
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ms. Esther C Suss & Mr. Oral Williams & Mr. Chandima Mendis, 2002. "Caribbean offshore Financial Centers: Past, Present, and Possibilities for the Future," IMF Working Papers 2002/088, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Amin & Ayesha Gul & Shabana Akhtar & Arab Naz, 2022. "Financial Action Task Force (FATF) and the Pakistan Stance: An Overview of the Mandate, Charter, Effectiveness in the Political Scenario of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 473-480, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Friedrich Schneider, 2008. "Money laundering and financial means of organised crime: some preliminary empirical findings," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 10(3), pages 309-330.
    2. Friedrich Schneider & Ursula Windischbauer, 2008. "Money laundering: some facts," European Journal of Law and Economics, Springer, vol. 26(3), pages 387-404, December.
    3. Hearn, Bruce, 2022. "The Determinants of Foreign Multinational Enterprise Firms' Board Governance in Caribbean Offshore Island Economies," Journal of International Management, Elsevier, vol. 28(4).
    4. Ahmed Zoromé, 2007. "Concept of Offshore Financial Centers: In Search of an Operational Definition," IMF Working Papers 2007/087, International Monetary Fund.
    5. Michael Brei, 2013. "Offshore financial centers in the Caribbean: An overview," EconomiX Working Papers 2013-40, University of Paris Nanterre, EconomiX.
    6. Sharon C. Cobb, 2009. "Redefining “Offshore” in Latin America," Growth and Change, Wiley Blackwell, vol. 40(2), pages 332-356, June.
    7. repec:wbk:wbpubs:7460 is not listed on IDEAS
    8. Friedrich Schneider, 2010. "Turnover of organized crime and money laundering: some preliminary empirical findings," Public Choice, Springer, vol. 144(3), pages 473-486, September.
    9. Arielle Joseph & Bernhard Troester, 2013. "Can the Mauritian Miracle continue? - The role of financial and ICT services as prospective growth drivers," Competence Centre on Money, Trade, Finance and Development 1301, Hochschule fuer Technik und Wirtschaft, Berlin.
    10. Hearn, Bruce & Oxelheim, Lars & Randøy, Trond, 2021. "The Impact of Founders on Information Asymmetry vis-à-vis Outside Investors: Evidence from Caribbean Offshore Tax Havens," Working Paper Series 1419, Research Institute of Industrial Economics.
    11. Luca Brandi, 2004. "The Economy of Small States," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 145-173, November-.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col095:42726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.