What have been the consequences of the various regulatory initiatives on international financial centres in small countries? This study of three small Commonwealth countries - Barbados, Mauritius and Vanuatu - suggests that the costs of implementing various standards have exceeded any identifiable benefits for the countries concerned.

Foreword List of abbreviations Summary 1. Introduction 1.1 Rationale for the Study 1.2 Design and Methodology of the Report 1.3 Structure of the Report 2. The Barbados International Business and Financial Services Sector 2.1 Origins and Development of the IFS Sector in Barbados 2.2 The Importance of the IFS Sector in Barbados 3. Regulation of the Barbados International Business and Financial Services Sector 3.1 Regulation and Supervision of the IFS Sector pre-1998 3.2 Emergence and Evolution of the post-1998 Regulatory Regime for IFS 4. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Barbados 4.1 Incremental Costs of Adopting New International Regulatory Standards 4.2 Incremental Benefits of Enhanced IFS Regulation and Supervision 4.3 Overall Assessment of Net Benefits Accruing from the Adoption of New International Regulatory Standards and Strengthening the Regulatory Regime 5. Overall Conclusions for Barbados 6. Development of the IFS Industry in Mauritius 6.1 Inception and Early Regulation of the IFS Industry 6.2 Development of the Mauritian IFS Industry during 1992-98 6.3 Post-1998 Developments Affecting the Mauritian IFS Industry and its Regulation 7. Importance of the IFS Industry in the Mauritian Economy 7.1 Introduction 7.2 The Financial Services Sector 8. Regulation and Supervision of the IFS Industry in Mauritius 8.1 The Pre-2001 Regulatory Framework 8.2 The Post-2001 Regulatory Framework for the IFS Industry 9. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Mauritius 9.1 The Quantifiable Incremental Costs of New AML/CFT Regulation 9.2 Qualitative Assessment of Costs and Benefits 9.3 Overall Conclusions from the Analysis of Survey Findings 10. The International Financial Services Sector in Vanuatu 10.1 Introduction 10.2 Origins and Development of the IFS Sector in Vanuatu 10.3 The Importance of IFS to the Vanuatu Economy 11. Regulation and Supervision in Vanuatu 11.1 Structure of IFS Regulation and Supervision 11.2 Emergence/Evolution of the Post-2000 Regulatory Regime for IFS 12. Incremental Costs and Benefits of Enhancing the IFS Regulatory Regime in Vanuatu 12.1 Incremental Costs of Adopting New International Regulatory Standards 12.2 Incremental Benefits of Enhanced IFS Regulation and Supervision 12.3 Overall Assessment of Net Benefits Accruing to Vanuatu from Adoption of New International Regulatory Standards and Strengthened Regulatory Regime 12.4 Conclusions and Future Implications of Current International Regulatory Initiatives for Vanuatu 13. Case Study Synthesis, Conclusions and Future Directions 13.1 Costs and Benefits to the Public Sector in Barbados, Mauritius and Vanuatu 13.2 Costs and Benefits to the Private Sector in Barbados, Mauritius and Vanuatu 13.3 General Implications for the International Financial Centres 13.4 Conclusions and Further Directions References and Bibliography Annex Index

'...this book is a valuable resource. It is well written and cogently argued.' Journal of Banking Regulation, Vol. 10, 176-177, March 2009 '...the study provides valuable data and policy discussions of some critical issues.' Tax Notes International, 12 January 2009