IMF to end 'offshore' distinction

The IMF has moved to bring its 'offshore' arm within its overall financial sector assessments, following criticisms that the offshore tag carries unwanted connotations.

The IMF last week announced the move, saying that it would, among other things, 'eliminate the need to maintain a potentially discriminatory list of OFC jurisdictions.'

The IMF's assessments of offshore financial centres have proved controversial, with one report produced under its auspices suggesting the UK itself was an offshore centre.

But tax havens have been trying to throw off the baggage of tags like 'tax haven' and 'offshore', which have negative connotations relating to money laundering and financial crime.

The move has not lifted suspicions from the centres, however. In its public release, the IMF said: 'OFCs' compliance with the 2003 Financial Action Task Force (FATF) 40+9 Recommendations for AML/CFT [money laundering rules] remain a source of concern. While the assessments, based on a sample of 21 OFCs, show that compliance is generally comparable to that of non-OFC jurisdictions, relatively low compliance was shown in certain key areas such as customer identification, the monitoring of transactions, and international cooperation.'

Further Reading:

Read the IMF's announcement

Darling on the offensive against UK tax haven claims