UK watchdog backtracks on blacklist
(CNS Business): In a complete about-face following its initial blacklisting of the Cayman Islands and subsequent refusal to remove the jurisdiction from its list a ‘High Risk Countries’, the Financial Conduct Authority, which regulates the UK’s financial services industry, has confirmed that the list has been removed from its website and that it does not plan to publish such a list in the future. It also has committed to a full review of the methodology that resulted in the Cayman Islands being placed on the list.
Wayne Panton, Minister of Financial Services, Commerce and Environment
“Government has been in continuing correspondence with the FCA regarding the list since our first letter of 8 July, and we recently sent correspondence to the UK Treasury, and the Foreign and Commonwealth Office, on this matter as well,†Minister of Financial Services Wayne Panton said in a release Thursday.
While recognising the FCA’s actions, he said that questions regarding the FCA’s methodology remain salient.
“Our industry regulator, the Cayman Islands Monetary Authority, will continue the dialogue with FCA officials to ensure they are accurately informed about our regime’, Minister Panton said.
In addition it is proposed that Premier Alden McLaughlin lead a small delegation, including Minister Panton, to the UK shortly to further discuss the circumstances around this issue with the FCO and other UK government departments.
In response to a letter from the Financial Services Ministry immediately following Cayman’s blacklisting, the FCA’s Chief Executive, Martin Wheatley, told Minister Panton, “We have carefully considered the contents of your letter, in particular your comment that the Cayman Islands does not feature on all the indices we study when assessing country risk. At present, we have concluded that the Cayman Islands should remain on the list. In reaching this decision, we took account of factors including those indices and a range of publicly available information which indicates high levels of money laundering risk remain and potential weaknesses in the Cayman Islands’ AML framework.â€
However, highlighting one of the reasons why Cayman’s inclusion on the previously published list is highly questionable, Minister Panton pointed to the fact that Cayman and the UK rated equally in the OECD’s 2013 Global Forum on Transparency and Exchange of Information for Tax Purposes rankings; in the Global Forum’s assessment, Cayman’s rating was higher than most of the G8 countries.
“The third-party data and assessments on Cayman’s regime speak impartially and unambiguously regarding the strengths of our system,†Minister Panton said.
Related articles on CNS Business:Â
Cayman government ‘astounded’ by blacklisting (with letters between Panton and FCA attached)
Category: Finance, Financial Services
No such confirmation is available from FCA nor has the Cayman Islands government presented any evidence of such list being revised to exclude Cayman islands from the list. Fact is the government should stop playing with the words and inform the Joe Public about what are the facts here.
Mr Concerned – if you are interested in the facts simply read the press release. The exact words of the FCA were used.
which words of FCA? suggest please check FCA website for any such removal
Suggest you provide evidence of your vague assertion that there is still a list – the media have confirmed that it has been removed as the FCA has stated
Why the need to go to the UK to ‘discuss’. Haven’t they heard of conference calling. More wasting of public funds for unnecessary travel it seems
Unnecessary actions and wasting of public funds is the hallmark of the former government and bears no resemblance to the current one.