financial centers to cooperate in the fight against money laundering. Yet what incentive
will these nations and territories have to support US criminal investigations if we threaten
their ability to maintain pro-growth policies?
If developing nations are not allowed to create an attractive investment climate, their
economies will doubtless suffer. The end result would be less cooperation and fewer
resources devoted to fighting international crime.’107
These critical words can be illustrated through an examination of the United States policy
and case law with respect to the offshore financial centers. Traditionally, bank secrecy
provisions have been used as a shield against investigations by tax authorities where the
taxpayers had an account that was subject to laws of this nature. An apt example is seen
in the case of the Cayman Islands where The Bank and Trust Companies Regulation Law
is representative of the type of bank secrecy laws that may be found in most offshore
centers.108 It follows, that US authorities may by several different means attempts to gain
access to confidential bank records held in an offshore center. One avenue that has been
107 108 Supra note 10 The pertinent provision of that law- Bank and Trust Companies Regulation Law, Law 8 (1966) – provides as follows: Section 10_ Preservation of Secrecy Except for the purpose of performance of his duties or the exercise of his functions under this Law or when lawfully required to do so by any court of competent jurisdiction within the Islands or under the provisions of any Law of the Islands, no person shall disclose any information relating to any application by any person under the provisions of this Law or to the affairs of a licensee or any customer of a licensee which he has acquired in the performance of his duties or the exercise of his functions under this Law. (2) Every person who contravenes the provisions of subsection (1) of this section shall be guilty of an offense against this Law and shall be liable on summary conviction to a fine not exceeding one thousand pounds or to a term of imprisonment not exceeding one year or to both such fine and imprisonment.