The Cayman Islands' Financial Secretary, George McCarthy, retaliated that banking confidentiality in the normal course of business is a common law protection which supports legitimate business dealings and that the Cayman Islands' regulatory legislation complies with international standards regarding the exchange of information on criminal matters.

Mr. Moscow has previously criticised the Channel Islands for its failure to co-operate with other jurisdictions, although recently he acknowledged that the Channel Islands' authorities want to help to fight crime. His strong words can be seen in the context of the general campaign being waged against low tax jurisdictions; but at the same time, many jurisdictions have taken carefully thought-out actions which they evidently feel will be enough to see off the 'high tax moral police'.

This is a war which is largely being conducted behind closed doors, and it is too early to predict the result. All the signs, however, point to a measured tightening-up by the IOFCs rather than a root-and-branch outlawing of 'offshore'