Guernsey: International Cooperation Against the Modern International Criminal
| Date | 01 February 1998 |
| Pages | 333-341 |
| DOI | https://doi.org/10.1108/eb027159 |
| Published date | 01 February 1998 |
| Author | Peter Crook |
| Subject Matter | Accounting & finance |
Journal of Money Laundering Control —
Vol.
1 No. 4 — Crook
Guernsey: International Cooperation Against the
Modern International Criminal
Peter Crook
As evidenced by the international consensus on the
prevention of money laundering, it is becoming
clear that it is well supervised and regulated finan-
cial centres that will prove successful in tomor-
row's increasingly global market-place for financial
services. For all concerned — customers, govern-
ment, institutions, supervisors/regulators and sta-
keholders — it makes sense that financial services
should be provided by solid institutions in a reput-
able environment and that both should be of the
utmost probity.
The Bailiwick of Guernsey has been a successful
finance centre for these reasons for more than 30
years and the Guernsey Financial Services Com-
mission (the Commission) intends that Guernsey
should remain successful — for exactly the same
reasons. However, criminals in one jurisdiction
have every incentive to ensure that another juris-
diction is involved in one way or another with
their crime. Today, criminals as well as finance are
truly global in character and for many years
Guernsey has asked not only what it can do for
itself to guard against crime and being tainted with
the proceeds but also what it can do for others
and, of course, what others can do for Guernsey.
To misquote the poet John Donne, no finance
centre, whether onshore or offshore, is an island
where international crime is concerned.
How has Guernsey as an international offshore
finance centre protected itself against the modern
international criminal and how has Guernsey
helped other centres protect themselves against
international crime? The answers to these two
questions are, of course, not mutually exclusive —
we can only help others if we have appropriate
domestic mechanisms in place to protect ourselves.
There follows an explanation of how Guernsey has
helped, and is helping, other jurisdictions combat,
in particular, financial crime, that is to say dirty
money. This article is very much about Guernsey,
about what works for Guernsey and whether its
mechanisms and systems might be appropriate in
other
jurisdictions.
Finally, there are a few ideas on
areas of international cooperation where more
could be done.
International crime may be the province of law
enforcers but the inescapable fact is that involve-
ment with money laundering, fraud and other
forms of financial crime is a threat to the reputa-
tion of any financial institution. Anything that
threatens such institutions threatens their integrity
and therefore the interests of depositors, investors,
other creditors and the environment in which
firms do business. As a result, the writer and his
colleagues have become ever more involved in
dealing with the threats of international economic
crime.
It appears from the media reports that a number
of inflammatory remarks were made about the
secrecy of offshore bank accounts in Guernsey and
the other Dependent Territories. The author of
this article wrote to the perpetrator of the remarks
asking for evidence to support his comments but,
not surprisingly, did not receive an acknowledge-
ment. This is the worst form of cooperation. The
Fifteenth Symposium has provided the author
with another opportunity to confirm that these
remarks were wildly inaccurate and showed no
knowledge of local business and regulations.
Unfortunately, even Guernsey, which is a sophisti-
cated and reputable finance centre, cannot insure
against ignorance. Guernsey has never enacted 'tax
haven' or any other laws to ensure banking
secrecy. The common law principles that are
applied by the courts in the UK are applied in our
courts. Guernsey is no different to the UK in this
area.
Guernsey's desire, and the Commission's
general duty, to protect and enhance the Baili-
wick's reputation as a financial centre is reflected
in the Financial Services Commission (Bailiwick of
Guernsey) Law, 1987 enacted by the States (Parlia-
ment) of Guernsey and the Commission's
approach to regulation and supervision. In all areas
which the Commission regulates and supervises
there is a policy of selectivity which means that
Page 333
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