Offshore Companies - A Case Study of Money Laundering Trends

The BVI Registry has reported in Public Statement No. 1 of 2012, more vigilant efforts to blacklist countries who are not, in their opinion, conforming to generally accepted principles of money laundering procedures.

London (PRWEB UK) 21 April 2012

Any businesses looking at offshore companies should consider their choice of jurisdiction very carefully. A recent report produced for 2012 by The BVI Registry has reported in Public Statement No. 1 that more vigilant efforts are being carried out to blacklist countries that are not, in their opinion, conforming to generally accepted principles of money laundering procedures.

The report available at Offshore Formations 247 confirms the jurisdictions that are not complying and therefore should be blacklisted. The list of countries includes Bolivia, Cuba, Ethiopia, Ghana, Indonesia, Kenya, Myanmar and Nigeria. Any business looking at specific locations for offshore companies will find the report a valuable resource for helping in selecting a chosen jurisdiction. There are many examples where the vindicated countries have not met the general guidelines for money laundering procedures.

The report outlines countries that have not made sufficient progress in implementing their action plans with and certain strategic AML/CFT deficiencies remaining. The FATF has confirmed that these countries should work on addressing these deficiencies which include

1.    Adequately criminalizing money laundering and terrorist financing

2.    Establishing and implementing an adequate legal framework and procedures to identify and freeze terrorist assets

3.    Ensuring a fully operational and effectively functioning Financial Intelligence Unit

4.    Implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements.

Opening bank accounts for offshore companies who trade with any of the above countries or whose directors or shareholders are resident of those countries is going to be quite difficult. Individuals with ties to these countries should be aware of this when looking to set up an offshore company.