The push in the financial services sector for increasing transparency could ultimately wipe out the line of distinction between onshore and offshore jurisdictions, according to leading investment banker Hans-Joerg Rudloff.

And Mr. Rudloff said Bermuda, with its existing reputation as a solid offshore jurisdiction for international business, could be well placed to succeed in this more open environment - and specifically in the area of private wealth management - if it plays its cards right.

Mr. Rudloff is the chairman of Barclays Capital - the investment banking division of Barclays Bank - and the director of wealth management company Marcuard Capital (Bermuda) Ltd.

He also sits on the board of the Thyssen-Bornemisza Group.

The financial services veteran - who divides his time between London where he works and his home of Geneva, Switzerland - could be said to have his finger on the pulse of the global economy with his bird's eye view as chair of Barclays, making him an industry insider attending pivotal economic World Bank forums and International Monetary Fund (IMF) meetings.

Recently on the Island for meetings, Mr. Rudloff told The Royal Gazette the world is changing and should get ready for complete transparency in financial transactions as that is what will eventually come to pass as world-wide countries enact broad legislation to root out any pockets of funding for criminal activity. "The global picture is a very clear one," Mr. Rudloff said, adding: "There is a firm conviction (amongst nations) that everyone should subscribe to (transparency) measures.

"We cannot tolerate organised crime or terrorism money finding its way into our banks because of a lack of necessary care, lack of legislation. That is the global picture and it is not going to change except to get stricter and better organised."

On that front, Mr. Rudloff said: "At the moment (legislation) is a bit piecemeal - there is one rule here, one rule there. Although legislation is currently quite different from country to country, the standards are being strengthened in all parts of the world. Ultimately, there is no question that over time there will be harmonisation (between states on legislation)," Mr. Rudloff said. Stepping back, Mr. Rudloff said there was no longer any justification for shrouding financial transactions in secrecy. He said that many countries, and and particularly the United States, had lowered tax rates to an acceptable levels meaning there was no longer great disparity in tax rates between nations. And beyond that Mr. Rudloff said the "moral justification" for secretively squirreling away one's wealth, as many have been the case when there were outposts of the world controlled by dictatorial regimes that did not tax its citizens per se, but confiscated their gains. Mr. Rudloff said: "Then there was an understanding that people were trying to protect their assets; protect their wealth. There is now a feeling that that is no longer necessary, there is no justification to do so."

Mr. Rudloff also pointed to increasing globalisation which had resulted in the free flow of capital, the free flow of goods as well as the free flow of people over the last 20 to 30 years. "Things have opened to the extent that there are virtually no obstacles or borders to moving around freely. This has its positive side but there is also, unfortunately, an increase in organised crime as never seen before," he said. Mr. Rudloff continued: "Needless to say organised crime is consistently trying to use every single place in the world not just tax havens for money laundering and much of this money going through American banks." To combat criminals being able to money launder, Mr. Rudloff said stricter crack downs would come into effect: "There is now a heightened determination under the anti-money laundering legislation extending the reach of government authorities.

"Within the framework of this type of legislation, authorities will obviously have a much closer grip and control on the movement of capital world wide. That is the global picture and that is not going to change," he said.

As for the Island succeeding in the new economy, Mr. Rudloff said Bermuda's outlook was good based on what he had seen during his visit to the Island. He added that the jurisdictions that would profit, and specifically in the area of wealth management, would be those that placed an emphasis on service and competence. Mr. Rudloff said he had been "very impressed", for example, with the systems he had seen put in place for Marcuard Capital - which as a wealth management company deals with tax and estate planning, setting up Bermuda trusts and financial reporting - by AXIS Accounting and Financial Management. Mr. Rudloff continued by saying that he had had good feedback on the Island as a place to do business: "From what I have heard everyone is very happy. But I would immediately add that you have to constantly improve as competition will be ever present and grow rapidly."

A classic case of competition, and again especially in the area of wealth management, Mr. Rudloff said could be seen in his homeland, Switzerland.

Although the country is facing possible changes as the European Union looks at changes to do with taxation and reporting that could alter some of Switzerland's long-time advantages as a place to put one's wealth, Mr. Rudloff said: "Swiss banks could face a crisis, for example if tax amnesties, as in Italy, were adopted by other (European) countries. But that does not mean the banks are going to lie down. If they (Swiss banks) have one ability it is the care of private wealth individuals - they have acquired the skill set to handle these clients." Mr. Rudloff said 75 percent of the Swiss banking system was geared to the "patient" care of private individuals wealth: "There is a level of private service not offered elsewhere. It is personalised service - that is what people want. Clients are taken care of, they are called, informed. People have to improve upon their systems all of the time. And that is Bermuda's challenge, it has to continually strive to offer the competence and superior service. And if it (Bermuda) thinks its business is carved out - that is just not the case"