Blacklisting is an ‘anti-competitive move by Europe’

By Gemma Hockey

GUERNSEY will have to wait for a forthcoming International Monetary Fund report before it can lobby the EU for inclusion on its list of countries deemed to have top quality anti-money laundering controls.

Treasury and Resources Minister Charles Parkinson said he agreed with Guernsey Financial Services Commission director-general Peter Neville’s comments yesterday that the decision to leave the Channel Islands off the ‘white list’ was a political one.

‘I am sure that there is no reason why we shouldn’t be fully approved but obviously some countries in the EU loath the idea that any tax haven could be respectable,’ he said.

‘I think once the IMF has given us its approval next year we should be able to go back to the EU and say we are fully approved by them and ask them what are they playing at.’

Britain’s Caribbean financial centres are not on the so-called white list while the Channel Islands and the Isle of Man have been granted intermediate status, which member states ‘may’ consider to be equivalent to EU states, according to the draft document published by the UK Treasury.

Russia is on the list while China and India are not.

But Deputy Parkinson said that he did not believe Guernsey’s exclusion from the list would damage the good reputation of the island’s finance industry.

‘The global financial industry considers Guernsey to be a largely well-regarded and well-run jurisdiction,’ he said.

‘It would be nice to have the blessing of the EU, but I think our reputation is already extremely good.’

He said the Guernsey Financial Services Commission was ‘handling’ the matter.

‘It is all in the hands of the GFSC, which is very capable in the regulation of the island’s finance industry and the Treasury and Resources Department remains willing to assist when needed.’

Law firm Collas Day’s dispute resolution consultant Paul Arditti, who has wide-ranging experience from practising law internationally, said the ‘white list’ was just Euro speak for blacklisting small communities with which Europe cannot compete.

‘It has nothing to do with terrorism and serious crime, for which there are international standards,’ he said.

‘Euro standards have more to do with public spending and taxation, which are out of control in Europe, and an anti-competitive approach to smaller more efficient communities.’