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SINGAPORE: Industry players said some offshore financial centres face the risk of losing business as developed economies increase their scrutiny on jurisdictions perceived as hiding places for money.
They said the centres that stand to benefit are those that offer full suites of financial services cementing their role as top destinations for banking.
Some offshore financial centres have come under fire as being places to hide assets.
Places such as Monaco and Liechtenstein had been put on the Organisation for Economic Co-operation and Development's grey list.
The list includes jurisdictions that have committed to the international agreed tax standard, but have not yet substantially implemented it.
And industry players said as regulations for offshore financial centres increase, the number of players in the offshore field will get smaller especially if they seek to function only as places to park assets.
Samuel Luft, chief global market strategist, Folio Asset Management, said: "A lot of the smaller financial centres will be forced to shut down.
"Because if the only reason they were able to accumulate assets was because of secrecy rules, I think the pressure being put onto these offshore locations by the OECD and different regulatory parties will force them to disclose a lot of information and one cannot stay in business if that was the only reason."
Speaking at a private banking summit, industry players said centres like Singapore, Hong Kong and Mauritius are likely to do better because they can offer the whole package of financial services.
These include talent, infrastructure and business links for players in the region, which will differentiate them from others.
James Benoit, CEO, Afrasia Bank, said: "Centres which don't have those natural trading ties and investment flows will find it very difficult to be known as a centre of substance. There's no choice but to be more substantial, adherent to regulations and being more than just a booking centre."
Industry players said that institutions have a part to play in developing the reputation of offshore financial centres.
They said that firms and governments should work together to develop the talent and infrastructure needed to provide the full suite of services that distinguishes the established centres from the less reputable ones. - CNA/vm
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