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Subject

The fallout from the 'Panama Papers'.

Significance

The release of the so-called 'Panama Papers' has highlighted once again the role played in the offshore financial sector by UK Overseas Territories in the Caribbean, along with Bermuda. The leak of 11.5 million files from the database of Mossack Fonseca, the world's fourth-largest offshore law firm, placed the British Virgin Islands (BVI) into particularly sharp focus.

Impacts

The offshore sector will be allowed to continue as London seeks to avoid a return to budgetary aid.

The strength of public opinion on the issue will dwindle as the Panama Papers' impact fades.

The BVI may push successfully for greater autonomy as a result of the scandal.

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