Welcome to Bridgehead Corporate’s latest monthly news roundup of 2024 that explores and analyses the trends in the coverage of offshore financial centres (OFCs) in the media landscape throughout August.
In August, there were 3736 mentions of “offshore” and “finance” in the global media, a negligible decrease (just under one per cent) on recorded mentions in July. However, August’s figures do represent a 16 per cent increase on August 2023.
The chart below plots the number of articles mentioning “offshore” and “finance” in the media over the last twelve months.
This August has seen significant developments among British Overseas Territories and Crown Dependencies concerning financial intelligence sharing, population growth strategies, and the economic impact of interest rate changes. Global reports have also highlighted concerns regarding corruption and efforts to boost financial hubs.
For BBC News, Jake Wallace reports that Guernsey’s Financial Intelligence Unit has entered into a new agreement with the British Virgin Islands’ Financial Investigation Agency to enhance collaboration in the fight against financial crime. This Memorandum of Understanding emphasises the critical role of international cooperation in combating money laundering and organised crime.
Meanwhile, the Isle of Man is taking proactive steps to address demographic challenges. In Business Tech, Malcom Libera explains the government’s initiative to attract skilled professionals, including South Africans, as part of its ambitious plan to boost economic growth and increase the island’s population.
In a positive development for borrowers, Robert Hall and Freddie Miller from the BBC reported at the start of the month that Channel Island property experts welcomed the Bank of England’s decision to cut interest rates to 5 per cent. This cut was the first reduction since the pandemic began, and it comes amid falling property prices in Jersey.
Despite ongoing international scrutiny, the British Virgin Islands (BVI) continues to face challenges related to its reputation as an offshore financial centre. Politico’s Eleanor Myers reports that the BVI remains a significant destination for Russian money, with new foreign secretary David Lammy calling for more to be done to counteract the impact illicit finance has on Britain’s security, and the role played by its overseas territories and the City of London.
Finally, Hong Kong is ramping up efforts to solidify its status as a global financial hub. As reported in The Star, business leaders and lawmakers are supporting initiatives to leverage offshore yuan financing and financial technology as part of a broader strategy to maintain the city’s competitiveness in the global market.
Top Stories
Below are our top five stories of the month.
BBC News - Islands agree to share finance crime intelligence
The financial crime regulator in Guernsey has signed an agreement to share information with its equivalent in the British Virgin Islands, it has said. Guernsey's Financial Intelligence Unit (FIU) investigates suspicious activity related to money laundering, organised crime and the financing of terrorism. The Memorandum of Understanding [MoU] with the Financial Investigation Agency in the British Virgin Islands (BVI) will result in the organisations sharing their intelligence. The head of Guernsey FIU, Adrian Hale, said the importance of international cooperation and collaboration "cannot be overstated".
Business tech - This European island is on the hunt for more South Africans
The Isle of Man Government has set a bold target to increase its population by targeting foreign professionals through recruitment incentives, aiming to boost the island’s economic growth and address demographic challenges. With the current population standing at around 86,000, this initiative is part of a broader strategy to attract skilled professionals from around the world, including South Africans.
BBC News - Rate cut 'great news' for Channel Island borrowers
Channel Island property experts have welcomed the Bank of England's decision to reduce interest rates. Rates were lowered to 5 per cent from 5.25 per cent, marking the first cut since the start of the pandemic in March 2020. The announcement was made hours after new figures confirmed average property prices in Jersey fell by 9 per cent in the year to June.
Politico - A paradise for corruption: Britain tries to clean up its dirtiest secret
Russia’s invasion of Ukraine in 2022, and resulting sanctions, have renewed the focus on Britain’s role in the darker side of financial services. Be it in the City of London, or the shores of British-owned islands, more attention is being paid to where oligarchs and kleptocrats stash their money. The BVI in particular has been the subject of this heightened attention. A report by Global Witness said that £68 billion of Russian money was invested in British Overseas Territories between 2008 and 2018, and that the BVI was the second most popular destination for Russian money leaving the country. (Cyprus was first.)
the star - Hong Kong beefing up status as financial hub
Business leaders, lawmakers and academics in Hong Kong have thrown their weight behind the city's bid to seize opportunities arising from offshore yuan financing, Belt and Road fundraising, financial technology applications and the "finance-plus-technology" development model to strengthen its status as a world financial hub. The key strategies were laid out in a resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China in July.