Agreed, but here is the rub, as has been the case in Cyrpus.
One is a legit saver, but just happens to have a few $m in BVI, and pays their tax each year.
But if the dodgy money starts to flow out of there, then the 'banks' will experience a run. You understand the bank system with a reserve on only about 5-8% in immediately convertible assets. Most the the $ have been lent out to others and will take time to call these loans in. Of course that is when we discover all the scams that have been going on with these funds, which I'm sure there are many.
So, capital controls may be implemented very quickly to preserve the banking system. These places are far higher risk than Cyprus IMO. I'm not talking about Singapore, but the BVI, Cook Islands etc. Probably the safety place in the world for dodgy accounts is still Switzerland, but they are a lot more cooperative with other jurisdictions these days.
