UK Advisory Against Antigua And Barbuda Looks Set To Be Lifted

by Amanda Banks, Tax-News.com, London

25 June 2001

Sir Ronald Sanders, the Antigua and Barbuda High Commissioner, stated recently that he believed that the British financial advisory imposed on the islands in April 1999 would be lifted very shortly. Although as long ago as November 1999, the then Economic Secretary Melaine Johnson was quoted as saying that: 'The UK recognises the efforts that the government of Antigua and Barbuda has made since April 1999 to strengthen the system of supervision and control,' the UK subsequently refused to lift the advisory because it wasn't convinced that the government had regulated the offshore gaming sector sufficiently.

However, earlier this year, the islands enacted new legislation addressing this issue, and strengthened their Financial Intelligence Unit. The amended laws place a levy of 3% on gross income and gross handle of businesses regarded as financial institutions such as casinos with a physical presence, internet gaming operations, sports books, and virtual casinos. They also contain provisions for freezing the ownership of property that has been disguised using complex corporate or trust structures, or which has been passed off as belonging to a third party.

This seems to have satisfied the British government, and Mr Sanders said that before the election, he received assurances from the government regarding this matter, and has since been in contact with the new Economic Secretary and with Baroness Amos, who is the new minister responsible for the Caribbean in the Foreign and Commonwealth Office.

Having fulfilled all demands on the offshore gaming front, the High Commissioner cannot see any further obstacles. As he remarked in May this year, following a previous round of talks: 'There can be no good reason for maintaining the financial advisory against Antigua and Barbuda unless a signal is being sent to other countries that advisories will be imposed and maintained no matter what governments do to make money laundering virtually impossible. '

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