HISTORIC PRESS RELEASE : Review of financial regulation in the Carribean Overseas Territories and Bermuda: Implementing recommendations [February 2001]

The press release issued by HM Treasury on 8 February 2001.

The Caribbean Overseas Territories and Bermuda have now each provided a formal response to the recommendations made in KPMG’s review of financial regulation, which was published on 27 October 2000.

Noting the responses of the Overseas Territories, the Economic Secretary to the Treasury, Melanie Johnson, said:

“The Overseas Territories have now explained how they plan to respond to KPMG’s recommendations. I have made it clear that the establishment of independent regulatory authorities, of effective powers to assist investigations by overseas authorities, and of any necessary enhancements to the laws and systems which combat money laundering are essential elements in establishing properly regulated financial centres in the Overseas Territories.

“These overdue measures need to be in place by the end of September 2001. The Overseas Territories themselves agreed when the review was published that these three priorities should substantively be in place by then, and I expect full delivery of their promises.

“I also expect to see KPMG’s other recommendations implemented by the end of 2001. This is essential if the Overseas Territories are to satisfy the international community and standard-setting bodies that they conduct their financial business according to international requirements. The UK fully supports a number of international initiatives which make it clear that counter measures will be taken against persistently non-compliant offshore financial centres.”

Baroness Scotland, Parliamentary Under Secretary of State in the Foreign and Commonwealth Office responsible for the Overseas Territories, added:

“I welcome the high level commitments from the Caribbean Overseas Territories and Bermuda to address the KPMG recommendations. Financial services is a competitive sector, and the UK Government is keen that the Overseas Territories will attract quality business seeking a well-regulated environment, based on the prevailing rules, laws and good practice internationally.

“The UK Government will continue to provide advice and assistance to help the six Overseas Territories concerned to achieve full compliance with the principles and guidelines in the KPMG report. There will be a process of regular review and dialogue over the next twelve months to ensure the published implementation plans are substantially implemented by the end of 2001.”