Bad label hurts Vanuatu

Vanuatu

By Macel Manua

ANGERED by bad labelling by a

United States Senate Sub- Committee, the Government of Vanuatu recently had to try to clear it self from suspicion it was being used as a laundering centre for drug money.

“Vanuatu . . . does not attract and does not desire or need the proceeds of crime,” said Finance Minister Sela Molisa in an address to Parliament in Port Vila.

He said Vanuatu’s offshore banking and finance centre was safe from abuse by criminals and drug dealers. But the country’s banking laws are still being re viewed to conform with international de

velopments in banking supervision.

Vanuatu’s heated reaction followed the release of a report by a US Senate Sub- Committee identifying Vanuatu as one of the finance centres used by drug barons and other criminal organisations

to launder “dirty” money. Said Molisa: “It is impossible for any country to state categorically that its banks, financial in stitutions and businesses are never used for drug laundering.” But, said lan Smith, the chairman of Vanuatu’s Fi nance Centre, a thorough check of all transactions of financial institutions in Vanuatu showed no irregularities. Smith claims that “certain” investigators have been frustrated by Vanuatu’s strict bank ing secrecy laws and are campaigning to discredit the country’s financial centre.

Earnings from the finance centre con tributes at least 15 per cent of Vanuatu’s Gross Domestic Product (GDP) and em ploys 400 people, mostly in Vanuatu,

who are moving into responsible posi

tions.

Smith calls on members of the US Senate Sub-Committee to prove their allegations. “Let them put up or shut up,” he says. □