Strengthening financial integrity and combating economic crimes in the post-pandemic Caribbean: what lies ahead!

Abstract

Purpose This paper aims to map key strategic concerns that Commonwealth Caribbean States will face in combating economic crimes and strengthening financial integrity in the post-pandemic era. Design/methodology/approach Horizon scanning was used to conduct a qualitative policy analysis of key regulatory developments in international anti-money laundering and combating the financing of terrorism (AML/CFTP) and tax governance, from the perspective of Commonwealth Caribbean countries. Findings This paper finds that the COVID-19 pandemic might widen several fault lines, along the Global North/South axis, in international AML/CFTP and tax regulatory governance. These include the “sustainable development” gap in AML/CFTP norm-making; making the Financial Action Task Force fit-for-purpose; renewed campaigns against “harmful tax competition”; and international commitment to scaling up technical assistance to combat economic crimes in developing countries. It questions the sustainability of the prevailing “levelling the playing field” regulatory approach to AML/CFTP and tax matters and whether serious consideration ought not to be given to mainstreaming “differential treatment” in international AML/CFTP and tax standards, for resource-strapped Caribbean countries. Originality/value To the best of the author’s knowledge, this paper is the first attempt to assess the strategic policy risks and challenges that will arise from balancing economic recovery and fighting economic crimes by small and vulnerable Commonwealth Caribbean States in the post-pandemic era.

Navigating the US “Green Rush”: anti-money laundering and de-risking implications for banking cannabis-related businesses in Jamaica

“…Still, the federal government has had little regulatory control over offshore financial activities in Delaware, WY, Nevada and South Dakota, which are major tax havens. It is on this basis that calls have been made for strengthening integrity in the transnational regulation of illicit finance (Clarke, 2021). Sadly, small tropical jurisdictions have been disproportionately targeted by advanced financial centres, using disciplinary techniques such as naming and shaming, adverse rankings, ratings and blacklisting.…”