St Helena : St Helena Discussions on Financial Services and Money Laundering
Submitted by Saint Helena Herald (Juanita Brock) 27.01.2008 (Article Archived on 10.02.2008)
The first round of public consultation on proposed legislation for financial services and money laundering has been completed. This was achieved with public meetings being held at the Half Tree Hollow and Jamestown Community Centres.
Press Release
Discussions on Financial Services and Money Laundering
The first round of public consultation on proposed legislation for financial services and money laundering has been completed. This was achieved with public meetings being held at the Half Tree Hollow and Jamestown Community Centres. These meetings were arranged to provide members of the public with the opportunity to question the draft legislation and propose amendments. It also provided people with the opportunity to become familiar with what the drafts are about.
The meetings were chaired by Attorney General, Ken Baddon with input from the Banking Regulator, Alan Savery, and Crown Counsel, Frank Wastell. Acting Financial Secretary, Christine Turpin, and Legislative Draftsman, Chistell Brodrick also attended the first meeting. Legislative Councillors were present and took the opportunity to raise questions along with their constituents.
In total, the meetings were attended by 11 members of the public.
Both meetings discussed the broad principles of the proposed legislation and the need for such legislation. In commenting on the meetings, the Attorney General said: “The need for such legislation was generally accepted by those present, with officials promising a further round of consultation when the detailed drafting of the Bills has been completed. A number of points were noted, both at the public meetings and at a separate meeting with the Chamber of Commerce. These points will be taken into account during the final drafting.”
At the meetings it was explained that when finalised, the legislation would provide immediate safeguards and a framework for future amendments. To this effect, it was noted that St Helena was receiving advice from specialists in the Foreign and Commonwealth Office and the Department For International Development.
Various questions were raised and emphasis was placed on the fact that St Helena should not offer an offshore banking service since this would make the Island vulnerable to corruption, particularly since St Helena does not have the expertise to manage such a complex service. However, views were also expressed to the contrary.
Discussion also centred on whether non-resident St Helenians should be allowed to open a bank account with the Bank of St Helena. On this point it was explained that the Bank will only open accounts for St Helenians or those persons who have a clear connection with the Island. There was some discussion on this, since another view was that St Helena should allow anyone to open a bank account. This led to further discussion about the great difficulty many people experience when trying to open an account in the UK.
There was also concern that potential investors might decide not to do business with St Helena if banking regulations are too tight. However, it was clarified that this would not happen if an investor was genuinely interested in doing business with St Helena as the law on St Helena would be no stricter for legitimate investors than in any other properly regulated territory. Again, a view was expressed to the contrary that St Helena should make regulations very stringent. Other points were also raised on the general principles of the Bills.
Work will now continue in the Legal Lands and Planning Department towards preparing the Bills for their next round of public consultation.
Public Relations/Information Office
Office of the Chief Secretary
22 January 2007
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