Welcome to the Caribbean

Citation

Ali, S. (2007), "Welcome to the Caribbean", Journal of Financial Crime, Vol. 14 No. 3. https://doi.org/10.1108/jfc.2007.30914caa.001

Welcome to the Caribbean

The image of the Caribbean being synonymous with piracy is cliché. It is true that, once upon a time, swashbuckling bandits plundered the region. In like fashion, modern day pillagers in the guise of fraudsters have sought to take their share of the bounty. The Caribbean has also attained some degree of notoriety as being the repository for ill-gotten gains. Although much of this infamy is exaggerated, in some instances, inadequate legal machinery has facilitated the entry of the uninvited.

Well now, “didst thou never hear that things ill got had ever bad success?” Ironically, the proliferation of financial crime has precipitated the expansion of counter-measures designed to make crime unprofitable. Indeed, external pressure to “clean up” the financial system, combined with an internal desire to eradicate crime and promote legitimate investment, have led to a plethora of new laws and supporting infrastructure being implemented.

The level of sophistication achieved in many jurisdictions has been impressive, ranging from the state-of-the-art financial intelligence units to effective financial regulators. Laws incorporating the provisions of key treaties, such as the 1988 Vienna Convention, the 2000 Palermo Convention and the Inter-American Convention Against Corruption, have been enacted. Many jurisdictions have also put in place legislation to deal with insider dealing and other forms of market abuse. Needless to say, this legislative overhaul has come with a huge price tag, as the financial burden to enforce these laws continues to stretch the resources of the state.

The focus of this issue of the Journal of Financial Crime is on the Caribbean. The articles cover a broad spectrum of topics, highlighting existing problems as well as exposing emerging threats. Money laundering and terrorist financing continue to be high on the global agenda and, as illustrated, the work of the Caribbean Financial Action Task Force remains pivotal to the advancement of regional initiatives. Corruption knows no boundaries and, as demonstrated, despite best efforts perception can often be more potent than reality when it comes to assessing a jurisdiction's anti-corruption efforts.

The offshore financial industry in the Caribbean is no stranger to censure, especially from onshore financial centres. Among the targets is the offshore trust, perhaps the most savvy of the offshore financial vehicles but, as shown, it not only provides a solid investment device it has also influenced the development of trust law generally.

Banking crises in Jamaica, in 1990s, created a catalyst for reform specifically in relation to the regulation of the financial sector. This discussion provides an appropriate segue for an exposé on the role of the regulator in attempting to control financial crime, particularly as the industry continues to evolve.

Indeed, the battle to defeat the scourge of financial crime remains a formidable one as novel challenges arise. For instance, advance fee fraud, once considered endemic to Nigeria is now taking up roots in the Caribbean. Developments in technology and payment methods have also led to frauds involving credit/debit cards. Alas, the ingenuity of the criminal mind will continue to perplex law enforcement as perpetrators devise new ways to cheat and steal.

In general, the Caribbean has often been the recipient of bitter criticism. What the articles in this issue provide is not only an illustration of “the bad and the ugly” but also an insight into what is good. This approach should provide greater clarity, and maybe even some symmetry, about how the prickly issue of financial crime is being dealt with in the region. It has been said that the journey of a thousand miles begins with a single step; perhaps, one may venture to say that in this mission to combat financial crime the Caribbean has made a few giant leaps.

Shazeeda Ali