Tax havens to reveal client identities

The UK tax havens issued a joint consultation document outlining measures to tighten anti-money laundering laws to help meet the international standards set by inter governmental body the Financial Action Task Force.

The document entitled Overriding Principles for a Revised Know Your Customer Framework proposes that businesses be required to know the identity of their customers or the principals behind their customers, if different.

It is aimed at creating a consistent approach along international standards recommended by the FATF to prevent money laundering and regulate financial crimes.

The islands will draw up a list of approved jurisdictions which follow the advice of the FAFT. Only certain financial institutions, within these approved jurisdictions will have legal capacity to verify the identity of the customer or principal.

In a joint statement the three regulatory bodies said: ‘This consultation document demonstrates the Crown Dependencies’ determination to work together to defeat money laundering.’

The document is to be reviewed and evaluated in 2001, while at the same time other international tax havens consider similar issues related to money laundering.

Meanwhile, the OECD and Commonwealth Secretariat are to organise high-level consultations on tax and competition issues in the global financial market to take place in Barbados, 8-9 January 2001.


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Financial Action Task Force online

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