Rising compliance costs offshore deter smaller clients

Anti-money laundering and tax exchange initiatives are causing many businesses to raise charges to cover the cost of compliance according to research  Offshore Perceptions from the Society of Trust and Estate Practitioners (STEP).

Of the clients affected 81% of offshore respondents said smaller clients were being squeezed out by higher costs. Fifty-one per cent of onshore respondents said clients were moving onshore as a result of higher charges offshore.

Across the board respondents reported that clients were reviewing their structures in light of new requirements cost and reputational concerns. Some clients are considering relocating to protect confidentiality or save cost.

Public perception was at the forefront of people’s minds. ‘Reputation (with the public)’ was considered one of the most important qualities for offshore jurisdictions by both onshore and offshore respondents and 71% had noticed a shift in their clients’ priorities towards protecting reputation rather...