§ Sir Thomas ArnoldTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the offshore financial regulatory arrangements in each of the dependent territories in the Caribbean; what plans he has to change them; what arrangements cover the issue of banking licences; and what EC provisions are applicable.
§ Mr. BaldryAll the dependent territory Governments are reviewing arrangements for regulation of their offshore financial sectors. We have encouraged this review and are giving it our full support. Its objective is to raise to internationally accepted standards existing levels of regulation across the range of financial services. The effect will be:(a) to prevent criminals and fraudsters from bringing the dependent territories into disrepute, and (b) to increase the attractiveness of dependent territories to legitimate business investors. New offshore bank licensing guidelines have been, or are in the process of being, introduced by each of the dependent territories. These bring dependent territory licensing practice into line with the Basle committee's recommendations on consolidated home state supervision. European Union provisions do not apply.