Fast spinning into oblivion? Recent developments in money-laundering policies and offshore finance centres

This article examines the growth of money-laundering in conjunction with th e associated development of offshore finance centres (OFCS) located in smal l places such as islands or microstates in the Caribbean and elsewhere. The phenomenal growth of OFCS since the 1960s may be seen in terms of the 'fou r spaces'. Three of these 'spaces-the secrecy space (confidentiality); the regulatory space; and the political space-can be used to frame an analysis of the growth of offshore finance and the emergence of a suitable environme nt for international money-laundering. The article then examines recent pol icy developments concerning money-laundering and OFCS, such as the workings of the Financial Action Task Force (FATF), and the regional Task Forces su ch as the Caribbean Task Force. Finally, the article explores the changing way 'offshore' is being constructed as exemplified by rising onshore pressu re from the OECD, G7, the EU and, most recently, the UK government, with it s growing concern demonstrated by the 1998 unprecedented Home office and FC O reviews of both British isles and Caribbean OFCS.