Guernsey, the second largest of the Channel Islands, is a self-governing dependency of the British Crown. Despite its long association with the Crown, the Island has never formed part of the United Kingdom, but the United Kingdom government undertakes responsibility for its defence and international relations. Guernsey has long enjoyed political and economic stability with low taxation for residents and these factors have largely been responsible for its growth as an international financial centre. The currency in use is Sterling and there are no exchange controls.
Guernsey is one of the world’s premier offshore financial centres. It benefits from a high degree of expertise in financial and related professions, with many leading international banks and accounting firms established on the Island. The Guernsey Financial Services Commission regulates Guernsey financial service providers to ensure that the highest international standards are maintained.
Guernsey has become a major centre for international trust and corporate services. Modern company and trust laws have been enacted creating a solid statutory framework for the administration of Guernsey trusts and companies.