Mr Levi said that although money laundering is an issue of serious concern to all countries, the Western world must be cautious of overriding the sovereign right of nations to determine their own tax regimes, and said that many developed and developing countries, such as those in the 16 member Pacific Islands Forum, offered tax shelters as legitimate commercial enterprises.

However, he added that for this very reason, it is important that all offshore jurisdictions are above reproach in their structure and dealings, so that their reputations are not damaged by money laundering allegations.

Pacific Islands Forum member states include: Australia, New Zealand, Fiji, Papua New Guinea, Samoa, Tonga, Kiribati, Vanuatu, the Federated States of Micronesia, Cook Islands, Solomon Islands, Nauru, Tuvalu, Marshall Islands, and Palau.