Running scared?

Posted on

This is from Jersey Finance:

'Recent reports have suggested that the UK Government is considering implementing an offshore bank account tax as part of a deposit protection scheme and that this move would have an impact on Jersey. These reports are purely speculative and have no basis in fact.

Jersey's Finance Industry has no knowledge of the UK Government imposing a tax on accounts held in Jersey, is not in discussions about such a move and has no intention to pursue such a course of action.'

'These misinformed reports suggest that such a move would be in relation to the UK Treasury's recently announced review of the Crown Dependencies and Overseas Territories. In fact, as Jersey Finance has stated previously, this review is welcomed by the Industry. It provides Jersey with a further opportunity to demonstrate the high standards of regulation that are in place in the Island as well as its commitment to supporting the drive for greater transparency in global financial services.'

So why did they issue such a statement? I suggest:

a) The UK is considering such a tax (possible)

b) The EU Savings Tax Directive has having the same effect that such a tax would have

c) Now some of Jersey's banks are owned by the UK government they're reporting those not exchanging data for money laundering purposes under the EU STD as is clear is required under AML regulations

d) The money is going whichever of these is true.

The one thing that is likely is the last.

They're running scared in St Helier. And rightly so. Their days are numbered, and they know it.