[If pressed further]
If we excluded the Islands from the provisions of the Convention,
that would imply that we consider that their affairs were not being
properly conducted by their governments. That is not the case.
As the Islands are, by virtue of their relationship with the United Kingdom, responsible for their own economies, control of companies registered there is a matter for them. Broadly speaking their company law is similar to that of the United Kingdom. The Islands have demonstrated a proper concern for the protection of their financial institutions. They are ready and willing to co-operate with the United Kingdom in dealing with matters which involve the improper use of companies, such as fraud. In any event, notwithstanding the actions of governments everywhere, it is not always possible to suppress companies of doubtful origins engaged
in nefarious activities. There is no reason to suppose that extension of the provisions of this Convention to those Islands will give rise to concern, or will affect companies in the United
Kingdom.
All the Islands have passed or will soon introduce legislation to
deal with drug trafficking and its proceeds, investor protection
and insider dealing. They co-operate closely with our investigating authorities and police forces in facilitating enquiries which have an Island dimension.
All the Islands have registration requirements for new companies
and controls on their activities.
In some cases, these may be more
It is
stringent than those applicable in the United Kingdom. accepted that a problem exists in relation to disclosure of ultimate beneficial ownership; but this is not a problem exclusive to the Islands, and is related more to the practical difficulties of dealing with a director or shareholder who may not be within
jurisdiction. Further efforts are to be made to address this
problem.