Vanuatu is an island nation in the South Pacific Ocean, about 1,750 km east of northern Australia. The nation imposes no income tax, withholding tax, capital gains tax, inheritance tax, or exchange controls, making it attractive for offshore financial activities. The Financial Action Task Force (FATF) placed it on its \”grey list\” for weak anti-money laundering regulations, isolating its banking sector. In 2001, former Prime Minister Barak Sope was charged with forgery over unauthorised financial guarantees worth between $23 million and $100 million to Indian businessman Amarendra Nath Ghosh. The country’s offshore finance industry took off in the 1970s amid global deregulation. But as financial crime – including money laundering, drug trafficking, and arms smuggling – became rampant, Vanuatu came under increasing pressure. It changed its laws to improve financial oversight and transparency, leading many offshore banks to shut down. Yet, some in VanUatu feel the country is still unfairly seen as a tax haven. The 2017 ‘Paradise Papers’ leak exposed hidden wealth tied to its offshore industry.