An Inconsistent Response
Caribbean nations with substantial offshore financial sectors have not responded uniformly to international efforts to crack down on money laundering and tax evasion.
In the past two years, the Caribbean has become a
battleground in the war against money laundering and tax
evasion. International organizations such as the Organization
of Economic Co-Operation and Development (OECD) and its
Financial Action Task Force (FATF) have been pressuring the
island nations of the Caribbean to change their banking laws
and the way banks do business. Some of these countries are
scrambling to appease the OECD and FATF so as not to face tough
economic sanctions from the world's richest and most powerful
countries. But others have been reluctant to make changes,
particularly with regard to their tax laws. Since June 2000,
many Caribbean countries have had to contend with the OECD's
campaign against what it calls "harmful tax practices." That is
when the OECD placed 35 countries, half of which are located in
the Caribbean, on a blacklist in an attempt to crackdown on
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