Money laundering rules 'will increase costs'

[R. A. Hettinga]

<http://www.bbc.co.uk/caribbean/news/story/2004/04/040415_anguilla-money.shtml>

The BBC

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Last updated: 15 April, 2004 - Published 16:13 GMT
 
Money laundering rules 'will increase costs'
  Criminals are using increasingly sophiscated methods for laundering money

Authorities in Anguilla have said proposed international rules to combat
money laundering will increase the costs of business transactions.

 Deputy director of Anguilla's Financial Services Commission Carlyle Rogers
said he anticipates the programme will result in greater costs of doing
onshore and offshore business.

The Paris-based Financial Action Task Force - the financial watchdog of the
Organisation for Economic Cooperation and Development - issued the 40-point
programme last June.

 The proposals were designed to keep international law enforcement abreast
of increasingly sophisticated efforts by criminals to conceal illegal money
flows.

The programme lays out broad recommendations for regulating businesses from
banks and insurers to gem dealers and real estate agents.

Mr Rogers singled out the recommendations that relate to the extension of
the due diligence requirements of accountants, law firms, casinos, real
estate agents, trust companies and company service providers.

He has also questioned the recommendation that calls for the extension of
the mandatory reporting of suspicious transactions to authorities by
lawyers, accountants and other entities.

Anguillan officials say as well as the issue of higher costs banks on the
island would come under stricter regulation and scrutiny, in terms of the
correspondence banking relationships they have with other financial
institutions around the world.

Anguilla has recently proposed three new pieces of legislation to bring the
island in line with other offshore centres as part of the development of
its financial services industry.

These include a Mutual Funds Act covering the recognition and registration
of offshore mutual funds; an Insurance Act, which provides for the
formation of both domestic and captive insurance companies and a Protected
Cell Companies Act to offer international clients the opportunity to use
protected cell accounts for insurance purposes.
 
 

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R. A. Hettinga <mailto: rah at ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
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