‘Gov’t mismanagement contributed to First Cayman Bank fiasco’, writes creditor
Letter to the Editor of the Caymanian Compass newspaper regarding First Cayman Bank.
Q&A with Grenada reguator Michael Creft over First International Bank of Grenada
Questions and Answers with Grenada's Registrar of Offshore Services, Michael Creft, regarding the First International Bank of Grenada.
Antigua advisor attacks US Advisory against island’s offshore industry
One of the architects of Antigua's new anti-money laundering laws has written to the US Treasury protesting its recent issuance of an Advisory warning that all transactions with Antiguan financial institutions should be treated as suspicious. US-based attorney Carlos E. Loumiet conceded that there were "a few shortcomings" in Antigua's new legislation but he claimed the US had ignored the "numerous positive changes in bank supervision in Antigua and Barbuda over the past two years designed to clean up the offshore banking sector in that country".
PLP causes jitters in business community after only six weeks in power
The PLP has only been in power a month but there are already signs that the party's stance on work permits for foreign employees might be tougher than previous governments.
A permit has not been renewed for Paul Rowlerson, a Senior Vice President with J&H Marsh & McLennan, after 14 years on the island in the insurance sector, according to a story in The Royal Gazette newspaper.
Cayman Parliament officially removes fiscal exemption clause in PCCL
The Cayman Islands Legislative Assembly passed an amendment on November 18, 1998 to remove the fiscal exemption clause from its Proceeds of Criminal Conduct Act, as we told readers would happen in the September edition of Offshore Alert. The amendment
‘Caribbean Bank of Crooks’
Offshore Alert can this month reveal further details about an Internet bank in Antigua that is perpetrating a fraud so crude that it illustrates why the island has developed such a poor reputation in the offshore world.
The fraud is all the more disturbing because the bank's legal representative in Antigua is Steadroy Benjamin, who is a Senator for the ruling Antigua Labour Party and is the Deputy Speaker of the Antiguan House of Representatives.
Cayman Governor John Owen to stand down
Cayman Governor John Owen is stepping down from his position next April.
Antigua amends offshore laws in bid to curb white-collar crime
Following a 17-month review, the government of Antigua and Barbuda this month announced a series of legislative initiatives aimed at cleaning up the jurisdiction's reputation for being one of the most poorly regulated offshore financial centres.
Proposed amendments to the International Business Corporation Act and the Money Laundering (Prevention) Act will create the Offshore Financial Sector Authority, which will have broad oversight and enforcement powers over offshore financial institutions.
Former US regulators lend support to white-collar criminals in Antigua
A report that we have been told was paid for by powerful banker Allen Stanford and presented to the Antiguan government in January of this year as part of the review of Antigua's offshore financial services sector contained a recommendation that would have severely hindered efforts to combat rampant white-collar crime.
Cayman amendment to PCCL drops fiscal exemption clause
The Cayman Islands government has drawn up an amendment to its Proceeds of Criminal Conduct Law that removes the fiscal exemption clause that so irritated the UK's Foreign and Commonwealth Office. However, the proposed amended legislation would still appear to offer little in the way of comfort to foreign governments seeking information about, and the seizure of, assets held by suspected tax evaders.
Cayman government continues its immoral ways
In what might rank as one of the most immoral decisions ever made by a democratic government anywhere in the world, Cayman Minister of Land John McLean has been allowed to keep his ministerial position even though a vote to oust him was carried by eight to six in the Legislative Assembly.
Members of the Legislative Assembly who were trying to remove McLean from office for allegedly illegally obtaining over 200 acres of Crown Land worth tens of millions of dollars fell one vote short of the required nine votes needed to pass their motion.
UK offshore tax initiative: The truth finally comes out after months of misinformation
The unfolding saga of moves by the UK to force its Overseas Territories to recognize fiscal offences in its mutual legal assistance laws is extraordinary in that it reveals the lengths that politicians, civil servants and businessmen will apparently go to lie or mislead the public when they think it is in their best interests to do so.It also underscores the importance of newsletters like Offshore Alert, which was launched in February, 1997 to provide clients with an independent and accurate source of information in a sometimes overly secretive offshore world where the truth is often difficult to find.
Offshore Territories must enforce ‘all-crimes’ laws, not just pass them into law
Offshore financial centres that are also UK Overseas Territories have been told that it is not enough for them simply to introduce legislation outlawing ‘all-crimes' but that they must also enforce the new laws.That was one of the messages delivered to the House of Commons Select Committee on Public Accounts by Sir John Kerr, Permanent Under-Secretary of State for the UK government.
Scandal-plagued Cayman government faces new crisis over John McLean
The Cayman Islands government is facing its second scandal within seven months following an announcement that Minister of Land John McLean has been cleared of illegally obtaining Crown Land worth tens of millions of dollars - despite evidence to the contrary.
The circumstances of the official whitewash of McLean are such that it calls into question the ability of the current government to administer its affairs in a competent or moral manner, including regulating its offshore financial services sector.
First Cayman Bank liquidators prepare to sue directors
The liquidators of First Cayman Bank have opened negotiations with the bank's directors and officers with a view to holding them financially accountable for their responsibilities. A lawsuit for negligence is also being considered against the bank's auditors.
This and the fact that professional fees and disbursements totalling $1.16 million were incurred in the first 23 weeks of provisional or official liquidation were the highlights of the second report of FCB's liquidators, Ian Wight and Michael Pilling, of Deloitte & Touche, dated May 14.
FCO letter presents gloomy picture for offshore finance centres
Further details obtained by Offshore Alert about the UK government's new proposals for regulations in its Overseas Territories confirm that what is being planned represents an offshore financial centre's worst nightmare.
And there is growing evidence that independent offshore centres like the Bahamas and Antigua are also facing international pressure to conform to new standards.
Cayman government back pedals on John McLean land investigation
Following pressure from Offshore Alert, the Cayman government has done a U-turn and launched a fresh investigation into the suspicious circumstances in which Minister of Land John McLean came into possession of Crown Land worth tens of millions of dollars.
In a letter dated March 17, Attorney General Richard Coles, acting on behalf of the Governor, John Owen, wrote to us stating that McLean "is concerned that the matter should be clarified as soon as possible".
Record land deal signed in Turks & Caicos Islands
The largest land development agreement to be signed in the history of the Turks & Caicos Islands calls for the construction of a harbour and duty free zone in the southern end of Grand Turk that is estimated to cost $312 million in a four phased development plan, reported the Turks & Caicos Free Press.The agreement was signed in December by the government and Grand Turk Harbour Development Company Limited, which is registered in TCI. The first phase of the plan is scheduled to begin early this year.
Turks & Caicos Islands Legislative Council meeting ends in farce and acrimony
If there's nothing decent on television, residents of the Turks & Caicos Islands can always go and sit in on the local Legislative Council for their fix of high drama and farce.One of the better episodes of LegCo, as the elected body is known, came during a debate on The Companies (Amendment) Bill on December 4, 1997.
Bruce Rappaport appointed Antigua’s Ambassador to Russia
Readers who followed last month's story about the US government's lawsuit accusing four banks and the Antiguan government of illegally divvying up $7 million in drug profits might be interested to know that Antigua recently appointed the banks' owner, Bruce Rappaport, as its Ambassador to Russia.The appointment of Rappaport to this official position on December 3, 1997, adds an interesting twist to the recent lawsuit brought by the US government against the Antigua-based Swiss American Bank group and Inter-Maritime Bank, of Geneva.
UK Foreign Minister announces plans to reform offshore regulations
UK Dependent Territories that are also offshore financial centres have until 1999 to comply with a "check-list" of four key areas of financial regulations to improve standards, UK Foreign Minister Robin Cook announced in London today.
John McLean facing legal battle over Cayman land
Cayman's minister for land, John McLean, is facing possible legal action after he was awarded Crown land potentially worth millions of dollars that another local resident claims is legally his.Leroy Johnson has consulted attorneys about bringing a civil lawsuit against McLean and has even gone so far as to file a criminal complaint against the minister with the Cayman police, alleging theft.
Remarks about Turks & Caicos Islands ‘uncalled for’
Letter to OffshoreAlert's editor from John D. K. Lawrence, Superintendent, Financial Services Commission, Turks & Caicos Islands.
Cayman-UK tax initiative debate
Excerpts of a discussion at a meeting on December 3, 1997 of the Finance Committee of the Cayman Islands Legislative Assembly in which opposition members raised the delicate matter of whether the UK government had asked Cayman to begin recognizing fiscal offences in its mutual legal assistance laws. When Offshore Alert first confirmed the existence of a tax initiative in July, the Cayman government accused us of reporting lies. But, as you might be able to discern from the dialogue, there clearly were discussions on the subject, although it appears that the issue has temporarily gone away.
Bermuda MP’s sex conviction overturned
The conviction of Bermuda MP Trevor Woolridge for sexually assaulting a woman has been overturned on appeal after a judge ruled that the trial magistrate's links with the ruling United Bermuda Party created a risk of bias.According to a report in The Royal Gazette newspaper, Chief Justice Austin Ward told the appeal hearing: "I am satisfied that the conduct of the trial was unfair to the appellant: there was a real possibility of injustice as regards bias."
Bermuda MP Trevor Woolridge quits party after sex conviction
Church minister Trevor Woolridge has quit the opposition Progressive Labour Party after being convicted of sexually assaulting a woman parishioner.
Swiss firm wins battle to buy duty free stores in Cayman
After a court battle lasting nearly 18 months, Swissair-subsidiary Nuance International Holdings Ltd. has finally been given approval to purchase a chain of local duty free shops in the Cayman Islands.The Cayman Islands Immigration Board reversed an earlier ruling - that was itself a reversal of an April, 1996 ruling - and granted Nuance permission to purchase Island Companies Ltd.
McKeeva Bush to be fired after First Cayman Bank collapses
McKeeva Bush, a director of First Cayman Bank who lied about his directorship after the bank collapsed amid allegations of fraud, is expected to be officially removed as a government minister when the Cayman Islands Legislative Assembly begins its next session on Friday, October 31.Bush has become an acute embarrassment to the Cayman government since First Cayman collapsed earlier this month, particularly with an international banking conference taking place on the island.
BVI passes anti-money laundering legislation
Twelve months after a similar law was introduced in the Cayman Islands, the British Virgin Islands, which is home to more than 200,000 foreign companies, became the second Caribbean Dependent Territory to pass wide-ranging anti-money laundering legislation at the behest of the UK government. Bermuda is expected to be next, possibly before the end of the year.
Petition to de-certify Linford Pierson as Cayman MLA to be withdrawn
A petition to de-certify the election in November, 1996, of Linford Pierson as a Member of the Cayman Legislative Assembly was due to be withdrawn this month.Former MLA Berna Thompson-Murphy, who lost her seat to Pierson in the 1996 election, had filed a petition in the Grand Court of the Cayman Islands in December, 1996, claiming Pierson's election should be thrown out and that she should replace her.
PLP lose Pindling seat in Bahamas
The ruling Free National Movement party gained another seat in the Bahamian parliament when it won a by-election in the South Andros constituency, which the opposition Progressive Liberal Party had held for 41 years.The seat had been vacated by former Prime Minister and PLP leader Sir Lynden Pindling, who had represented South Andros for 30 years before retiring from politics after his party's humiliating defeat in the March 14 general election.
UK GAO report outlines drive to force offshore regulators to co-operate more with foreign authorities
A wide-ranging report into the Dependent Territories by the UK National Audit Office has outlined a further drive by the Foreign and Commonwealth Office to force financial regulators in offshore jurisdictions to co-operate more with foreign authorities.
Statistical comparison of Caribbean-based offshore financial centers
Statistical comparison of Caribbean-based offshore financial centers. Figures supplied by Foreign & Commonwealth Office/National Audit Office.
Bermuda’s Police Commissioner fired after government minister implicated in drugs sting
British policeman Colin Coxall has been forced to resign as Bermuda's Police Commissioner six months before the end of his three-year contract following pressure from the government. He will step down on October 31.
Cayman tax initiative – latest
Despite overwhelming evidence to the contrary, the UK and Cayman Islands governments are still denying the existence of an initiative from London requesting that Cayman begin co-operating with tax investigations carried out by G7 countries, as was reported last month by Offshore Alert.The ‘does it or doesn't it exist' debate has reached almost farcical proportions, largely as a result of the Foreign & Commonwealth Office in London refusing to discuss the subject in any depth and the Cayman government refusing to discuss the subject at all.
Bahamas by-election called for Pindling’s seat
A by-election will be held in South Andros on September 5 to choose a replacement for former Prime Minister Sir Lynden Pindling.
OffshoreAlert’s ‘misconceptions’ about Cayman tax co-operation
Letter to OffshoreAlert's editor from Nev Johnson, Press Officer, Foreign and Commonwealth Office trying to coorect "erroneous" rumours about the Cayman Islands being forced to co-operate with tax investigations. It later transpired that the "rumours" were accurate.
Cayman law allows co-operation for ‘most serious tax offences’, says FCO
Letter to OffshoreAlert's editor from Nev Johnson, Press Officer, Foreign and Commonwealth Office concerning news that the Cayman Islands was being forced to co-operate with foreign tax investigations.
Cayman delegation meets with US officials
A series of recently-concluded talks between the US government and a Cayman government/private sector delegation that began last week in Washington have been termed "extremely beneficial" by Cayman governor John Owen, who headed the delegation.The meetings were designed to "continue to foster good relations with the US government" and to discuss problems of mutual interest, said Owen, who initiated the first series of talks last year.
UK tax initiative in Cayman
Does it exist or doesn't it? That was the question being asked in the Cayman Islands this month after widespread reports that the Foreign and Commonwealth Office in London sent a directive to Governor John Owen instructing Cayman to pass legislation opening up bank accounts for tax investigations carried out by the world's major countries.
Cayman passes mutual legal assistance law for drug-related offences
The Cayman Islands has introduced another piece of anti-money laundering legislation with the passage this month of the Misuse of Drugs (International Co-operation) Law 1997, which allows foreign countries to apply for legal assistance when investigating drug-related offences.
Bahamas ditches Taiwan for China
The future of Taiwan's economic link with the Bahamas has been jeopardized after the Bahamas broke its eight-year diplomatic relationship with Taiwan in favour of China, the Nassau Guardian reported.The policy shift followed the opening of an $80 million container port in Freeport, in which Hutchison Port Property, a subsidiary of Anglo/Sino firm Hutchison Whampoa, has a 50 per cent stake, reported the Guardian.
Turks & Caicos Islands is not a ‘dubious domicile’, says regulator
Letter to OffshoreAlert's editor from Michael D. Constantine, Deputy Superintendent, Government of the Turks and Caicos Islands, Financial Services Commission.
OffshoreAlert’s existence ‘will be brief and its demise swift, just and certain’, says TCI resident
Letter to OffshoreAlert's editor from Dale Peters regarding derogatory comments about the Turks and Caicos Islands.
David Saul quits as Bermuda’s premier
Bermuda was in shock last week following the sudden resignation of David Saul as Premier after just 19 months in office.Saul caught everyone by surprise by giving only a week's notice that he was stepping down as leader and announcing that he was also quitting as an MP a few days after that.His resignation has caused concern among international businessmen, who fear a leadership battle could affect the economy.
Lynden Pindling quits politics
Sir Lynden Pindling has announced he is stepping down as leader of the opposition Progressive Liberal Party after 32 years, including 25 as Prime Minister, and is also quitting politics following his party's comprehensive defeat in the Bahamas General Election on March 14.Pindling was one of only six PLP MPs to keep hold of their seats as Hubert Ingraham's Free National Movement party won a record 34 of the 40 seats available. The PLP will meet soon to elect a replacement.
Why I was thrown out of Bermuda – by journalist David Marchant
Since Offshore Business News & Research was formed in November, 1996, several clients have asked why the company is based in Miami and not in one of the offshore domiciles it covers, such as Bermuda, the Bahamas or the Cayman Islands. The reason is that OBNR's founder has already been thrown off one island for writing investigative articles about powerful people and there is little doubt in his mind that he would be thrown off others for publishing similar stories. Such a scenario is not a consideration in the United States, where there is genuine freedom of the press and that is why OBNR is located in Miami, which also happens to be a gateway to the Caribbean. Below, Mr. Marchant goes into the circumstances of his forced removal from Bermuda, where he lived and worked from 1990 to 1996. He believes that what happened to him illustrates that, while Bermuda is generally a sophisticated society, occasionally it lives up to the ‘tinpot island' image that it has tried so hard and successfully in recent years to overcome.
Bermuda’s officers and directors given ‘licence for incompetence’
Bermuda's lawyers, a firm of whom recently charged a client $400 for obtaining a $5 copy of someone's will, have surpassed themselves in the area self-preservation through the passage of amendments to The Companies Act 1981.Following the introduction of The Companies Amendment Act 1996, which became law last year, it has become more difficult, if not impossible, for creditors of failed Bermuda-registered companies to sue those who are partly responsible for the failures.
Mexico acts to curb offshore money transfers
The Mexican government has amended the country's tax laws to try to curb the massive outflow of capital being lost to the world's tax havens.
Hearing to decertify Cayman MLA Linford Pierson is adjourned
The hearing to decertify the November 1996 election of Cayman Island Member of Parliament Linford Pierson was today adjourned until April by Grand Court Justice George Harre to allow Pierson to take his place at the opening 1997 session of parliament.