Offshore banks

Madam, Last month’s article "Nauru: Money Mine for Swindlers/Both Swindled and Aiding Swindlers” referred to Nauru’s lack

of banking supervision but wrongly went

on to refer to Vanuatu as if our banking practices were in the same category as those of Nauru.

They are not. Vanuatu is the only Pacific Island Member of the Offshore Group of Banking Supervisors, which is

committed to high standards of bank supervision.

Your article stated that Nauru’s banks’ victims did not know the difference between these banks and the closely-regu lated Caribbean banks. It may therefore interest you to know that, while Vanuatu’s membership of the Offshore Group of Banking Supervisors was confirmed this year, the British Virgin Islands and another British Caribbean territory’s applications to join the group were refused, they being unable to meet the supervision standards for entry.

Vanuatu passed money laundering leg islation in the 1980 s, whilst many coun tries in the region have yet to do so. We have an unequalled record in the Pacific for acting in the prevention of crime. We remain committed to improving our ability to provide high quality confidential off shore banking services but to discouraging criminals from using them.

Patrick Ellum

Attorney General And Chairman of Financial Services Commission