Considering the Consequences: The Developmental Implications of Initiatives on Taxation, Anti-Money Laundering and Combating the Financing of Terrorism

by J.C. Sharman, Percy S. Mistry

What have been the consequences of recent regulatory initiatives on international financial centers in small countries? This study of three small Commonwealth countries―Barbados, Mauritius and Vanuatu―suggests that the costs of implementing these new standards have exceeded any identifiable benefits for the countries concerned.

The main factor explaining the adoption of the new standards, in all three countries, is the fear of being blacklisted by international organizations in the event of non-compliance, rather than any identified benefit in terms of increased competitiveness. The authors consider how policy on anti-money laundering should be developed in the future, taking into account the particular concerns of small developing countries.

The book will be of interest to all those engaged in setting international standards for financial regulation, and those regulating the finance industry in both large and small countries.

256 pages, Paperback

First published January 1, 2008

About the author

J. C. Sharman is the Sir Patrick Sheehy Professor of International Relations in the Department of Politics and International Studies at the University of Cambridge and a fellow of King’s College. His books include The Despot’s Guide to Wealth Management and International Order in Diversity. He lives in London.