currently in crisis; our urgent response here would send a signal to other DTs that HMG was serious in its efforts to root out corrupt practices.
10.
that
Dr Brewer then outlined Mr Gallagher's recommendations regarding technical assistance:- an enhanced role for the ECCB, the appointment on TC terms of a regional financial advisor, and of two local financial advisors (one for Anguilla/Montserrat and one for BVI/TCI). In addition, he had proposed the creation of a Financial Secretaries Advisory Panel, the introduction of a range of new legislation and legislative amendments, and the appointment of additional specialist local staff. He had estimated the total cost of his programme for the first year would be around £800,000; the DTS would be expected to provide more than half of this sum themselves. To date, Mr Gallagher had produced two of his country chapters, on BVI and Caymans; the other three were promised shortly. Once the current Caribbean exercise was complete, we should need to look in detail at
at the offshore finance sectors in other
DTS, most especially in Gibraltar. Hence offshore finance sectors should remain a standard item on future DTLG agendas, at least at six-monthly intervals. She agreed with Mr Stone, however, that no such exercise would be necessary in Hong Kong where a full review had been carried out following the 1987 crash.
11. Mr Wallace underlined the significance of the propsed constitutional changes in Montserrat, a unique example of constitutional regression which could have implications. elsewhere. Mr Mills emphasised that OMD should be given early notice of the requirement for TC advisors so that the recruitment process could be set in motion. Recruiting from Coopers and Lybrand would prove very expensive. Miss Eddis asked if Mr Gallagher had recommended Bank of England secondments. Dr Brewer replied that the report had made no such specific reference, though of
though of course Bank of England officials could be appointed to the financial advisor posts. However we should bear in mind that offshore finance sectors consisted of more than just banks. Mr Mills agreed, pointing out that it could prove difficult to find an adviser who was expert in the whole range of offshore sub-sectors.
The Montserrat problem
on
12. Mr January briefly summarised the current position the Montserrat investigations. To date, 133 bank lincences had been withdrawn. A Coopers and Lybrand examiner's report on First American had revealed many and serious breaches of local banking regulations. However, its licence had not yet been revoked, the matter having become entangled with essentially political disputes between Governor and Chief
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