Financial Crime World

Headline: Anguilla Slips Further Down Global Transparency Index Amidst Financial Crime Concerns

Anguilla’s Non-Compliance with International Standards

Anguilla, the beautiful Caribbean island known for its celebrities and tax haven status, has found itself under the scrutiny of global financial transparency watchdogs. The OECD (Organisation for Economic Cooperation and Development) has labeled Anguilla as “non-compliant” due to its ambiguous laws and poor record-keeping.

Failure to Meet Information Sharing Standards

Despite hosting vacation homes for stars like Michael Jordan and Sandra Bullock, Anguilla has failed to meet international standards in sharing information about companies and individuals suspected of financial wrongdoing. The island received 53 requests for information on suspect Anguillian companies between 2015 and 2017 but only provided details in nine of these cases.

  • OECD concerns
  • Lack of transparency
  • Fallout from Panama and Paradise Papers leaks

Defending Anguilla

Offshore service providers in Anguilla, including Carlyle K. Rogers, have defended the island, stating that it has limited resources to meet international demands.

Questionable Reputation

Investigations like the Panama Papers and Paradise Papers have shown that Anguilla has a well-documented history of attracting questionable clients.

  • Blacklisted by the European Union, France, and the Netherlands
  • Involvement of Anguillian companies in criminal activities like money laundering and tax evasion

Courting Offshore Law Firms

Anguilla has reportedly been courting offshore law firms like Mossack Fonseca since 2005, promising them favorable conditions to operate on the island.

  • Significant contributor to Anguilla’s jurisdiction
  • Creating over 1,000 companies per year according to an agreement with the government
  • Marketed Anguilla as a cheaper alternative due to its lenient tax policies and poor regulatory oversight

The Disappearing Trace of Mossack Fonseca’s Anguillan Operation

Traces of Mossack Fonseca’s Anguillan operation are now hard to find, with its first representative on the island, Sherma Baptiste Harrigan, living in St. Louis, Missouri. An investigative reporter visited the apartment complex known to house many former Anguillian company owners but found that most had disappeared without a trace.

Future Changes for Anguilla’s Financial Sector

Under international pressure, Anguilla’s financial sector may face significant changes in the near future. The question remains whether the island fully addresses these issues and regains its reputation as a desirable tax haven.

Sources

  • Organisation for Economic Cooperation and Development (OECD)
  • International Consortium of Investigative Journalists (ICIJ)
  • Global Witness
  • Tax Justice Network