Niue Likely To End Offshore Banking In August

by Carla Johnson, Investors Offshore.com

14 March 2002

According to Niue's Solicitor General, Togia Sioneholo, the jurisdiction's offshore banking laws have not been repealed as promised due to ongoing negotiations with existing licence holders.

Prior to the 28 February OECD deadline for commitment to the elimination of 'harmful tax practices', Niue Premier Sani Lakatana had stated that the offshore banking laws would go before parliament on March 7 to be repealed, in a bid to secure removal from the blacklist of uncooperative countries.

However, according to Mr Sioneholo, concerns about the reaction of clients to the dismantling of the offshore banking sector has delayed the progress of the draft repeal law. Speaking on Tuesday to Radio New Zealand International, he explained that:

'We have some concerns with respect to some of the licences, and we have had to ensure that we don't place ourselves in a position where licence holders may bring action against us.'

The Niue Solicitor General said that the repeal of the offshore banking legislation is now likely to be delayed until after the general election in mid-April, and that existing licence holders will probably be permitted to continue operating until the end of August.

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