Offshore disputes: Big fish, small pond

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Offshore disputes: Big fish, small pond

Carlyle, Tchenguiz and Crociani are cases repeatedly cited by the leading players in Jersey and Guernsey as shorthand for big disputes and big fees. These cases just keep on giving: all three are now subject to further appeals or related proceedings, prolonging their life in litigation terms. Elsewhere, the mood among local dispute resolution and insolvency lawyers is generally upbeat. Although less high-profile litigation might not deliver the big headlines, there is enough going on below the radar for revenues to remain healthy.

‘Insolvency-related disputes are still a significant source of work globally,’ says Jeremy Wessels, Mourant’s head of litigation and dispute resolution. ‘Other areas where we have seen increased activity include trust-related litigation, regulatory, debt restructuring, cross-border enforcement and go-private transactions.’ Mourant remains the biggest Channel Islands firm for disputes with 25 lawyers in Jersey (five partners and 20 other fee-earners) and 23 (six and 17 respectively) in Guernsey. Continue reading “Offshore disputes: Big fish, small pond”

The offshore elite in review – rolling with the punches

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The offshore elite in review – rolling with the punches

Global stock markets rose by 22% in 2017, according to the Morgan Stanley Capital International index of bourses. Meanwhile, the World Bank is forecasting global economic growth to increase to 3.1% this year after a better-than-expected 2017 as investment, trade and M&A continue to rebound while commodity prices recover. Against this favourable economic background, it is no surprise that offshore law firms had another very good year.

But there were some local difficulties. Hurricane Irma and Hurricane Maria created havoc across the Caribbean, not least in the British Virgin Islands (BVI). ‘It had a devastating impact on the lives of our BVI colleagues,’ says Jonathan Rigby, managing partner of Mourant Ozannes. ‘None of us will ever fully understand what they have been through, but their strength of character and resilience has been truly humbling.’ Continue reading “The offshore elite in review – rolling with the punches”

‘A lot of noise without substance’: profession divided on impact of Paradise Papers

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As the contents of the Paradise Papers soaks up column inches worldwide, the profession has offered a mixed response so far to the revelations, with some welcoming public scrutiny while others dismiss it as un-newsworthy.

On 24 October, offshore firm Appleby confirmed that a ‘data security incident’ took place in 2016, raising fears that client information could become publicly available. Appleby also acknowledged that it had received enquiries from the International Consortium of Investigative Journalists (ICIJ), which had published the Panama Papers in 2016, regarding the data breach. Continue reading “‘A lot of noise without substance’: profession divided on impact of Paradise Papers”

Offshore: Riding the storm

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Offshore: Riding the storm

Think offshore centre and certain calm images spring to mind: elegant yachts, crystal blue water, sparsely-populated beaches and gently sloping palm trees. However, in September this idyllic cliché was superseded in the public consciousness by horrific scenes of destruction as Hurricane Irma and then Hurricane Maria ripped through the Caribbean. The British Virgin Islands, where nine of the top ten offshore law firms have an office and nearly 400,000 offshore companies are registered, were catastrophically affected.

Favoured by Chinese companies in Hong Kong for more than 30 years, ‘a BVI’ is shorthand for an offshore company, so renown is its status. But while the narrative coming out of the British Overseas Territory has been defiant with Lorna Smith, interim executive director of BVI Finance, saying there was ‘no doubt’ it will fully return, it could take some time before full operational normality as a commercial and litigation centre is restored. At press time, the territory’s company register continued to function via the online portal, VIRRGIN and just prior to the disruption, company incorporation certificates were sent to London by the BVI Financial Services Commission to have them issued there. The commercial division of the High Court had resumed and matters were being heard by the commercial judge sitting in nearby St Lucia in person, or by teleconferencing or videoconferencing if agreed by the parties. Continue reading “Offshore: Riding the storm”

Offshore but not off limits

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Offshore but not off limits

Navigant’s David Lawler on recent developments in asset-tracing claims

Given the multiplicity of channels available to money launderers and the increasingly sophisticated methods they use to cover their tracks when routing dirty money, claimants in asset-tracing cases face many barriers to recovering funds. Indeed, electronic banking means that funds transfers across borders and through multiple accounts allow fraudsters to quickly and repeatedly splinter assets into sub-accounts, almost instantaneously. They have many ways to hide money, involving webs of credits and debits between banks and intermediaries.

Continue reading “Offshore but not off limits”

The year offshore in review – The Iron Islands

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The year offshore in review – The Iron Islands

Despite a year of pronounced headwinds, our annual focus on the ten largest offshore firms reveals that 2016 activity levels remained robust with an increasing focus on Asia and continued strength in dispute resolution. However, among the leadership of these firms there is little doubt that Brexit has had an inevitable effect on performance.

‘The reality of Brexit has and will continue to impact business as much as the prospect of Brexit has done,’ says Jonathan Rigby, managing partner at Mourant Ozannes. Continue reading “The year offshore in review – The Iron Islands”

Sponsored briefing: Offshore but not off limits

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Sponsored briefing: Offshore but not off limits

Navigant’s David Lawler on recent developments in asset-tracing claims

Given the multiplicity of channels available to money launderers and the increasingly sophisticated methods they use to cover their tracks when routing dirty money, claimants in asset-tracing cases face many barriers to recovering funds. Indeed, electronic banking means that funds transfers across borders and through multiple accounts allow fraudsters to quickly and repeatedly splinter assets into sub-accounts, almost instantaneously. They have many ways to hide money, involving webs of credits and debits between banks and intermediaries. Continue reading “Sponsored briefing: Offshore but not off limits”

Standing apart – the offshore fallout from the Panama Papers

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On April Fool’s Day this year, Panamanian law firm Mossack Fonseca & Co notified its clients that it had sustained an email hack. It instantly became the world’s best-known law firm following the leak of 11.5 million documents, cherry-picked by global media outlets, that revealed confidential client information. The Panama Papers made news and so did offshore law firms. Again.

But for every offshore firm, regardless of jurisdiction, the Panama Papers leak was no laughing matter: the inevitable public outcry further fuelled the enduring debate over tax and transparency. Continue reading “Standing apart – the offshore fallout from the Panama Papers”

Aftermath – the offshore world post the Brexit vote

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‘The morning after the night before, there was stunned silence,’ says David Cadin, managing partner at Bedell Cristin. For offshore law firms, the long-term implications of Brexit are no clearer than for their onshore counterparts and they are equally loath to make predictions when uncertainty continues to surround terms for the UK’s departure from the EU.

As Antonia Hardy, Cayman Islands managing partner of Walkers, puts it: ‘In terms of offshore access for financial services, no-one knows yet – like everything to do with Brexit the answer is possibly and hopefully.’ She offers a very positive take: ‘Offshore centres have always been required to apply for European access independently of the UK and so we do not foresee any negative impact from the Brexit decision.’

Continue reading “Aftermath – the offshore world post the Brexit vote”