Financial Crime Investigation Techniques in Anguilla Under Scrutiny as Island Slips Down Transparency Index

The Caribbean island of Anguilla has been drawing international attention for its struggles with financial transparency and crime investigation techniques, according to the Organisation for Economic Cooperation and Development (OECD). The island’s recent slide down a key global transparency index has raised concerns about its ability to share information on people and companies suspected of tax evasion and financial crimes.

A Poor Record-Keeping Reputation

Anguilla, a British Overseas Territory in the Caribbean, was ranked as “non-compliant” with international standards for sharing information on financial transactions and entities. The island’s poor record-keeping and ambiguous laws have been criticized by the OECD, which found that it is unclear whether reliable accounting records are maintained or whether firms helping create offshore companies are required to know their owners.

Lack of clarity on maintaining accounting records
Ambiguous laws governing offshore company creation

Inability to Provide Basic Corporate Information

The OECD report cited Anguilla’s inability to provide basic corporate information as a major concern. The island received 53 requests from other countries seeking information about Anguillian companies between 2015 and 2017, but only responded with details in nine cases. This has led some experts to question whether the island is doing enough to combat financial crime.

Only 17% of requests were fulfilled
Unclear if the island is doing enough to combat financial crime

History of Attracting Unusual or Criminal Interests

Anguilla’s financial services sector has a history of attracting customers with unusual or criminal interests. The Panama Papers investigation revealed that an alleged Slovenian drug dealer opened a company in Anguilla, while documents from the Paradise Papers investigation showed that a Fort Lauderdale startup financier set up an Anguillian company to avoid creditors.

History of attracting suspicious clients
Lack of transparency in financial transactions

Criticism and Controversy

The OECD’s report on Anguilla is not without controversy, as some have criticized the organization for its own lack of transparency and double standards. Carlyle K. Rogers, an Anguillian barrister and offshore service provider, defended the island, saying that it has limited resources to meet the OECD’s demands and accusing the organization of having “an anti-free market and imperialistic crusade” against Anguilla.

Criticism of the OECD’s lack of transparency
Defenders argue that the island is being unfairly targeted

The Need for Increased Cooperation and Investment

As Anguilla struggles to improve its reputation and meet international standards, experts are calling for increased cooperation and investment in financial crime investigation techniques. The island’s ability to effectively combat financial crime will be crucial in restoring public trust and attracting foreign investment.

Need for improved transparency and cooperation
Importance of effective financial crime investigation techniques

The U.S. was named as the world’s second-most secretive jurisdiction behind the Cayman Islands in the Tax Justice Network’s 2020 Financial Secrecy Index, further highlighting the need for greater transparency and cooperation on financial crime investigation techniques.

Global trend towards increased secrecy
Need for international cooperation to combat financial crime