The editor of tax book World’s Leading Financial and Trust Centres said that many offshore financial centres, such as the British Virgin Islands, were far more compliant with international standards than some major economies were in terms of disclosure.
He said this “level playing field” has been created as a result of major recent efforts by regulators and the Organisation of Economic Development and Co-operation to improve the international exchange of tax information, through measures such as dual tax agreements and by cracking down on money laundering.
Mr Venardos said: “Old assumptions over which jurisdictions can offer the best and best- regulated opportunities for corporate and wealth structuring simply do not apply any longer.
“Banks and other financial institutions can no longer try to meet their own regulatory responsibilities by making snap judgements based on where a company or trust is incorporated.”
Adviser view
Leighton Jones, adviser from the Quatar office of international advisory firm Guardian Wealth Management, said he welcomed the increasing levels of regulation that many offshore jurisdictions are employing and that it was a trend which will continue, to the benefit of investors and savers.
“However, he cautioned that just because an offshore financial centre may be tightly regulated, there still needed to be caution. Mr Jones said: “Regulation is only a part of the issue. Investors still need to be very sure that the underlying financial infrastructure in their chosen jurisdiction is secure. Regulation does not cancel out risk”
