http://www.channelonline.tv/channelonline_guernseynews/displayarticle.asp?id=492618

The International Monetary Fund has said Guernsey needs to do more to crack down on money laundering.

But in a series of reports the organisation has also praised Guernsey's financial regulation and supervision.

The findings come following two visits by the IMF to the island last year.

The International Monetary Fund visited Guernsey in March and May of 2010 to evaluate the Bailiwick's financial supervision and criminal justice frameworks.

It was all part of the IMF's global financial stability assessment programme so it meant Guernsey was being judged against international standards.

And overall they did well - a set of six reports said the Bailiwick's financial sector regulation and supervision are of a high standard.

However, the IMF did have concerns when it came to money laundering.

While the island's laws are apparently up to scratch, the report says their implentation is not.

They believe the size of the financial sector and Guernsey's international status means more money laundering cases should be pursued in the local courts.

The IMF says the island is too reliant on foreign law enforcement rather than focusing on tackling offenders here. But they also say most of the shortcomings are just technicalities, and some of the problems have already been addressed by Guernsey's authorities.