Guernsey money laundering 'needs tackling directly'

Money laundering in Guernsey needs to be tackled more directly by the bailiwick's financial authorities, the International Monetary Fund (IMF) says.

A series of reports released last week gave a positive assessment of the islands' laws, but said they needed to be implemented more.

The IMF said Guernsey was over-reliant on foreign law enforcers.

Guernsey Chief Minister Lyndon Trott said the bailiwick would not rest on its laurels in dealing with problems.

A team of six IMF assessors visited the bailiwick in May 2010.

They met with law officers, tax authorities and regulators, as well as a selection of financial and other companies.

'Remain proactive'

In six reports, totalling almost 600 pages, the IMF praised the bailiwick for its legal framework and the efficiency with which it reported suspicious activity.

But it criticised the low rate of prosecution.

However, it also acknowledged that work to address shortcomings began as soon as its evaluation team left.

The chief minister said about the reports: "Whilst we welcome the positive evaluation reports of the IMF, we will by no means rest on our laurels.

"Our place in the global financial services economy means we need to remain proactive in evolving our regulatory framework, and ensure that we remain in the vanguard of international standards."