Guernsey Financial Institutions Must Learn To Say No, Warns Expert

by Amanda Banks, Tax-News.com, London

21 September 2001

In the wake of recent events, many jurisdictions both offshore and on, have begun to examine their rules and regulations in order to ensure that criminal and terrorist activity cannot take place through their financial sectors, and Guernsey is no exception.

Despite possessing an already high reputation for respectability in the offshore world, Talmai Morgan, the Director of Fiduciary Services and Enforcement has warned that Guernsey financial institutions need to learn to say no to suspect business, in order to avoid tarnishing the jurisdiction's reputation by becoming implicated in tax evasion, money laundering, and other dodgy dealings.

'If you are uncomfortable with a piece of business it is just not worth it,' he commented at a conference addressing the future of the Guernsey finance industry recently. 'The culture of the industry in the old days was not to ask too many questions. Several old industry hands said that it is no longer like the old days, when there was a more buccaneering spirit. They say that it's not so much fun and they are right. Now we need professionalism.'

He added that as the difference in taxation between offshore and onshore jurisdictions continues to shrink, 'tax havens' should be looking to compete on an even keel with onshore countries, seeking out quality value-added business 'that could stand the light of day'.

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