Dow Jones
GEORGE TOWN, Cayman Islands Voters ousted the leader of the Cayman Islands and a colleague, showing their anger over the weakening of secretive banking laws that have made this British Caribbean territory one of the wealthiest places in the world.
Truman Bodden, the leader of government who was also planning minister, lost his seat in general elections Wednesday, according to results announced late Thursday. Also ousted was Tourism Minister Thomas Jefferson, who with Mr. Bodden led negotiations with international groups that have accused the Cayman Islands of having bank secrecy laws that encourage money laundering and tax evasion.
In June, the Cayman Islands was put on two blacklists of countries judged tax havens and uncooperative in the fight against money laundering. Within weeks, Mr. Bodden rushed through legislation limiting banking secrecy, introducing legal requirements for customer identification and record keeping, and requiring banks to cooperate with foreign investigators.
The government said at the time that it expected to be speedily removed from the blacklists, but this did not happen during a review last month by the Paris-based Financial Action Task Force that was set up by the Group of Seven industrialized nations.
In all, seven new legislators were elected, and eight incumbents held on to their seats. Five incumbents were defeated, and two retired. Only one member of the negotiating team, Linford Pierson, kept his seat. Voter turnout was more than 80%.
