G-2-0 AND OFFSHORE FINANCIAL CENTRES: FREE TRADE OR PROTECTIONIST ATTACK BY G-20 MEMBER ON-SHORE FINANCIAL CENTRES? - A CALL FOR REFORM OF GLOBAL REGULATION OF ANTI-MONEY LAUNDERING AND TERRORIST FINANCING"

 ALFRED M. SEARS, ESQ.

MANAGING PARTNER OF SEARS & CO. AND FORMER ATTORNEY GENERAL OF THE BAHAMAS AND CHAIRMAN OF THE CARIBBEAN FINANCIAL ACTION TASK FORCE (CFATF)

PART 1

These twelve (12) articles are intended to encourage public conversation about the appropriateness of having ad-hoc organizations, such as the FATF and the OECD/Financial Stability Board, which are controlled by G-20 member countries with competing onshore financial centres to protect, make the rules on anti-money laundering and terrorist financing and apply punitive countermeasures against competing offshore financial centres.  Most of the offshore financial centres, which were black listed in 2000 by the FATF, OECD/Financial Stability Board and the United States, are once again under assault.  The Bahamas' financial services sector is once again facing a clear and present danger when in April 2009 it was grey listed by the OECD/Financial Stability Board, an organization in which The Bahamas is neither a member nor has a vote.  Using The Bahamas as a case study, I will examine the response of offshore financial centres to the punitive counter-measures taken against them by of these ad-hoc organizations.  I will conclude by making a number of recommendations to ensure equality of treatment between offshore financial centres and onshore financial centres and provide a more legitimate and effective global regulatory framework to fight money laundering and the financing of terrorism.