HAS ITS BANKING SCANDAL DISQUALIFIED NEVIS AS A SAFE OFFSHORE FINANCIAL CENTER?

The dynamics of the unfolding civil litigation against two of the most prominent offshore banks in Nevis are having an impact in the generally private world of professionals whose clients are referred to tax haven jurisdictions for asset protection. The rumors, which far exceed the reports of the multiple lawsuits, and which have not yet been verified, are troubling:
(1) That one of the offshore banks maintains so-called "Phantom accounts," on behalf of clients who would not qualify as customers under the bank's reputedly efficient and effective due diligence ( Customer Identification) program.
(2) That the Nevis financial regulator was ordered by the Premier not to take any enforcement action whatsoever against any offshore financial institution licensed in the jurisdiction.
(3) That the CEO of one of Nevis-based trusts has no educational, professional or employment background in asset protection.
(4) That certain offshore bank directors are intentionally avoiding any visits to Nevis, fearing arrest by Saint Kitts & Nevis law enforcement officers, acting under the orders of the sitting High Court Justice.

Given the present refusal of the offshore banks involved in the civil litigation to obey the lawful orders of the local court of competent jurisdiction, regarding disbursement of the funds of demand depositors, asset protection professionals will most likely give the two island Federation of Saint Christopher and Nevis a wide berth, until the scandal sorts itself out, but the damage to Nevis' reputation as a safe and sane destination for capital may be permanent.