Guernsey: Study of a Finance Centre and Its Fight Against Fraud

Abstract

It might seem strange to some that a financial services regulator is writing about fraud. Historically economic crime is the province of law enforcers but the inescapable fact is that involvement with fraud and other forms of financial crime is a threat to the reputation of a financial institution. Anything that threatens such institutions threatens their integrity and therefore the interests of depositors, investors, other creditors and the environment in which firms do business. As a result, the Guernsey Financial Services Commission has become ever more involved in dealing with the threat of economic crime. Indeed, throughout the world, regulation and the prevention of economic crime are becoming increasingly entwined. The proposed role of the Financial Services Authority in the UK vis‐à‐vis the regulatory bodies which are amalgamating into the Financial Services Authority is a case in point.