19 January 2011 at 19:22

http://www.compliancy-services.co.uk/news/article/641/guernsey-needs-to-tackle-money-laundering-directly

A report by the International Monetary Fund (IMF) has said that Guernsey needs to do more to directly tackle money laundering.

A team from the IMF visited the bailiwick in May last year to assess its financial regulation, supervision and stability.

After meeting with law officers, tax authorities and regulators, as well as a selection of financial and other companies, the team wrote six reports, totalling almost 600 pages, that were broadly positive.

They praised Guernsey's legal framework but said not enough was being done to enforce anti-money laundering laws with a low rate of prosecution.

Deputy Lyndon Trott, Guernsey's chief minister said: "Whilst we welcome the positive evaluation reports of the IMF, we will by no means rest on our laurels.

"Our place in the global financial services economy means we need to remain proactive in evolving our regulatory framework, and ensure that we remain in the vanguard of international standards."

Guernsey is a popular offshore finance centre for private equity funds due to its low taxes and death duties.