Another Caribbean Offshore Centre Endorses Information-Sharing Standards

Tom Burroughes

27 March 2009

St Kitts and Nevis is the latest Caribbean country to respond to international pressure to conform to transparency in financial sector regulation or face a crackdown, local media reports said.

Parliament in Basseterre has passed a new law for the exchange of information on tax.

The Group of 20 developed and developing countries - gathering for a meeting in London next week - has threatened to slap sanctions on offshore centres that do not abide by international transparency standards. These countries say tax havens encourage taxpayers to flee, leaving less well-off taxpayers having to pay higher bills. However, defenders of such jurisdictions say they are being unfairly blamed for home-grown economic problems in G20 nations.

The Organisation for Economic Co-oporation and Development has set new standards for transparency and exchange of information on tax matters.

In the past month three regional jurisdictions Bermuda, the British Virgin Islands and the Cayman Islands have indicated their willingness to comply. St Kitts Finance Minister Timothy Harris told parliament yesterday that passage of the new law was necessary to protect the country's financial sector, media reports said.