The United Nations is set to zero in on so-called tax havens and draw up a league table of "internationally approved offshore centres''.
And governments responsible for offshore centres -- in Bermuda's case, Britain -- which fail to reach UN standards within five years would face huge international pressure to shut them down altogether.
Last night Finance Minister Eugene Cox said: "I'm not familiar with this UN approach.'' But he added: "We are doing all we can -- if this is a new initiative, obviously in due course we will get information and ensure we will be properly represented to protect Bermuda's reputation as a place of business which has regulations in place which will meet any standards.'' The UN intervention comes in the wake of a three-pronged probe into the Island's status as an offshore jurisdiction. The Organisation for Economic Cooperation and Development, the European Union and the UK itself have all turned the spotlight on the offshore industry.
The UN's Global Programme Against Money Laundering launched its Offshore Initiative in Vienna, Austria, at the weekend.
But the UN is apparently keen to stress inclusion on the list is a reward for good behaviour -- a "carrot'' approach. That contrasts with the "stick'' being wielded by the OECD, which is currently compiling a hit list of dirty domiciles.
According to reports, the Cayman Islands, Gibraltar and the Isle of Man have already started talks with the UN over their eligibility to join the exclusive club of rated offshore centres.
All of these, however, cannot approach the UN directly because of their relations with Britain and must rely on the UK to fight their corner at the UN HQ in New York.
A spokesperson at the New York UN HQ was last unable to say what contact had been made by competitor jurisdictions like the Caymans.
But Mr. Cox said: "We would expect to be on any approved list -- right at the top.'' He added: "We are a colony still and obviously Britain would probably bear the burden of any initiative initially.
"But I'm sure in due course they will get in touch with us and we can take action.'' He said that Bermuda was still battling to keep out of the OECD and EU bad books.
Mr. Cox added: "What we're trying to do is make sure proper representation is being made because some of the things which have been said are entirely correct as they related to Bermuda.'' Part of the UN approach is to offer training -- on the grounds laws are useless without enough people qualified to enforce them.
And the UN is understood to have accepted that offshore low -- or no -- tax jurisdictions will not just go away and that they have a place in the international money market.
The UN method also envisages that it would be better to work with offshore jurisdictions in a bid to separate money-laundering from issues about taxation and tax harmonisation with the aim of reaching consensus on cracking down on criminal activities in the sector.
