Britain’s Caribbean tax havens are coming under renewed pressure from Brussels to lift their jealously guarded banking secrecy.
In a document on corporate and financial malpractice, the European Commission has called time on the vague financial laws of offshore investment magnets, such as the British Virgin Islands and the Cayman Islands.

The move comes in the wake of the scandal over Parmalat, the Italian dairy giant, abuse of the protected status of offshore subsidiaries to hide its financial position.
'The time has come for concrete actions to ensure that our partners are transparent,' the Commission paper says.

The Commission suggested introducing banking transparency into existing EU trade and aid deals with African, Caribbean and Pacific countries and territories, thereby giving Brussels the power to use such things as banana quotas and development grants as bargaining chips over access to financial information.

Brussels is also offering 'economic support' to help 'co-operative' territories that open up their financial sectors to scrutiny.
Offshore financial centers may have few reasons to surrender to such an approach but the hope of their need to protect a small number of rich people may be dwarfed by the need to access European markets and EU handouts.

The suggestion from Brussels is the latest addition to international lawmakers' efforts to target offshore financial centers.

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