Front Matter Page
INTERNATIONAL MONETARY FUND
Offshore Financial Centers The Assessment Program—A Progress Report
Prepared by the Monetary and Financial Systems Department (In consultation with Other Departments)
Approved by Ulrich Baumgartner
February 8, 2006
Executive Summary
This paper provides an update on the actions taken under the offshore financial center (OFC) program since the last update issued in February 2005.
Three jurisdictions were assessed in 2005 and nine assessments have been scheduled. To avoid duplication, assessments are being coordinated with mutual evaluations conducted by FATF and FATF-style regional bodies. Several jurisdictions asked to postpone assessments, so that they may continue to focus on enhancing their supervisory arrangements.
Technical assistance has been provided mostly to small, lower-income jurisdictions in banking and insurance supervision, AML/CFT legislation and supervision, and statistics.
While significant progress has been made on implementing the information framework initiative, the success of the initiative will depend on the number of participating jurisdictions. The data collected so far provide useful comparisons of the significance of different centers and a more complete picture of the geographical distribution of the financial services industry. Of the 46 jurisdictions invited to participate, thus far 16 have submitted data and another 18 are preparing to provide data. A few are making significant changes to their collection systems to improve data availability. Staff are following up with jurisdictions to encourage broader participation and data dissemination by jurisdictions.
The third IMF roundtable for onshore and offshore supervisors and standard setters held in November 2005 highlighted the need for continued attention to cooperation and information sharing, risk-based supervision, and appropriate sequencing of standards implementation as the means to address increasingly complex cross-border issues. Participants agreed that: supervisors and standard setters should consider disseminating good practices on information sharing; providing website guides to jurisdictions’ information sharing arrangements; and assigning priority and resources to information exchange issues.
Contents
Acronyms and Abbreviations
Executive Summary
I. Introduction
II. Second Phase of the Program: Monitoring and Technical Assistance
III. Monitoring and Transparency
IV. Collaboration and Cooperation
Tables
1. Status of Participation in the Information Framework Initiative
Appendices
I. Summary Status of First Round of Assessments
II. Offshore and International Financial Center Assessments
III. The Information Framework
Acronyms And Abbreviations
| AML | anti-money laundering |
| APG | Asia-Pacific Group on Anti-Money Laundering |
| BCBS | Basel Committee on Banking Supervision |
| BCP | Basel Core Principles |
| BIS | Bank for International Settlements |
| CCE | Coordinated Compilation Exercise CFT combating the financing of terrorism |
| CPIS | Coordinated Portfolio Investment Survey CY calendar year |
| DNFBP | designated nonfinancial businesses and professions |
| FATF | Financial Action Task Force |
| FIU | financial intelligence unit |
| FSAP | Financial Sector Assessment Program |
| FSF | Financial Stability Forum |
| FSRB | FATF-style regional body |
| FSSA | Financial System Stability Assessment |
| IAIS | International Association of Insurance Supervisors |
| ICP | IAIS Insurance Core Principles |
| IOFC | international and offshore financial center IOSCO International Organization of Securities Commissions |
| LEG | Legal Department |
| MFD | Monetary and Financial Systems Department OFC offshore financial center |
| OGBS | Offshore Group of Banking Supervisors |
| PIN | Public Information Notice |
| SCP | IOSCO Objectives and Principles of Securities Regulation |
| STA | Statistics Department TA technical assistance |
| TCSP | trust and company service provider TGS Technology and General Services Department |