Antigua: Offshore finance centre for 2010?

As the global economy gradually continues to climb out of recession, foreign and offshore banks are proving an increasingly tempting option to prospective UK savers who are eager to get the most from their cash. Yet, an additional consequence of the economic crisis is the reformation of banking practices and management evident amongst a large number of respective countries worldwide.

Subsequently, 2010 is likely to be a year when financial centres change significantly, and others seem to emerge entirely. Antigua could certainly be seen as an example of the latter. Famed for its golden beaches, dramatic landscape and its tourism dependent economy, the West Indian island (referred as a country only when combined with Barbuda) has embarked upon an era of certified and committed financial transparency.

This change has been heralded by the decision of the Organisation for Economic Co-operation and Development (OECD) to move Antigua onto its white list, alongside other financial centres ranging from the United Kingdom and US, as well as other offshore centres including the Isle of Man and Jersey.

The OECD dates from post-war Europe, and was founded in France by Robert Marjolin in an attempt to aid the financial reconstruction of Europe. Today the OECD encompasses an international range of countries, with its own funding acquired from the combination of a portion of each respective member’s gross national product. The move for Antigua, therefore, represents the assurance from at least 12 members that it’s financial and tax – and co-operation standards – are in-line with rest of the world.

Caribbean islands including Barbados have been on the OECD white list for some time, whilst others, such as Anguilla and the Bahamas are waiting for further exchange agreements. It is now hoped that the Antigua’s new found position will see a much needed boost to the economy as the tourist industry has experienced less visitor numbers since 2008.

David Martin writes about foreign banking, from offshore savings to expat destinations.