Introduction

The typical perception of an ‘Offshore Finance Centre’ was described in the introduction to this book. However, not all OFCs conform to this perceived description, and perceptions concerning what distinguishes ‘Offshore’ from ‘Onshore’ can be misleading. This chapter describes some of the traits that make the UK not dissimilar to more familiar ‘Offshore Finance Centres’. Meanwhile, it has been said that ‘the UK has tolerated the creation of OFCs in its own dependent territories such as the [Channel Islands] [see section 17.4 below] and Gibraltar. In addition, it has encouraged some of its overseas dependent territories in the Caribbean to set up offshore centres.’ Accordingly, the UK is not unfamiliar with the ‘Offshore’ concept.

By way of a backdrop, the UK – like all other countries – has a number of ongoing problems, such as crime. One estimate of the total cost of crime to the UK puts it ‘in the region of £50 million per annum … [and] … assets derived from organised crime represent around 2 per cent of the UK's Gross Domestic Product’. Another estimate says that ‘Assets derived from crime probably represent around 2 per cent of the United Kingdom's Gross Domestic Product (GDP) or GBP18 million, up to half of which is the value of illegal drug transactions in the UK.’