Storm survivors

Source: Matthew Valencia, Economist, February 16th 2013

Offshore financial centres have taken a battering recently, but they have shown remarkable resilience…

This special report will argue that tax havens are indeed facing serious threats but are also being presented with some enticing opportunities, especially if they have strong links with emerging economies. The best-regulated of them are no longer merely “sunny places for shady people”. They can reasonably feel aggrieved when they are lumped together with the dodgiest havens, or when onshore jurisdictions themselves fail to practise the financial rectitude they preach to their offshore rivals.

All the same, the OFCs will remain under intense pressure as tax compliance receives more political attention. They will have to show not only that they have cleaned up but that they are making a constructive contribution to the world economy.