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Guernsey has sometimes been seen as a haven for criminals who want to hide their ill-gotten gains, but the island has clamped down. John Greenfield discusses how
White collar or economic crime is a major issue for businesses worldwide and as a leading offshore financial centre, the Bailiwick of Guernsey faces this ever-growing problem. A 2001 survey identified that the financial services sector appeared to be particularly at risk. The most prevalent frauds are embezzlement or breach of trust, while cybercrime is identified as a key concern of the future.
It is clear that prevention is better than cure, as the recovery rate following a fraud tends to be slow and the process painful and expensive. Whether one blames a lack of astute corporate governance or the lack of diligence of third parties, such as auditors, the result tends to be a loss to the institutional company situated outside Guernsey - where the finance centre has sometimes appeared to be attractive for the placement of funds that are the product of white collar crime.
Both the legislator and Guernsey's legal system have responded to the challenge to ensure that Guernsey continues to enjoy its reputation as one of the world's leading and well-established offshore financial centres. When the phrase 'white collar crime' was coined more than 50 years ago, it did nothing more than describe good old-fashioned crime committed by affluent individuals or businesses, but the weapons utilised in Guernsey and elsewhere to tackle this problem have included both criminal and civil legislation. Criminal cases now often involve civil, or at least quasi-civil, procedures and there are a number of examples of civil law tackling white collar crime.
The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999 (The All Crimes Law)
The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999, otherwise known as the 'All Crimes Law', covers the majority of cases through which the proceeds of criminal conduct are laundered. A person who is found guilty of an offence under this law is liable to a maximum...