In an under-reported decision, the International Monetary Fund is to drop the distinction between 'offshore' and 'onshore' financial jurisdictions and put both under the same scrutiny for compliance with banking standards and anti-money laundering rules.
This subtle but important shift will be felt nowhere more than in shipping.
The IMF is to integrate its eight-year-old offshore financial centre assessment programme with its long-standing financial centre assessment programme for 'onshore' financial centres.
Its ongoing examination of the credibility of offshore financial centres — heightened because of fears of terrorist money laundering — has proven that while weaknesses in some countries remain, adherence to international financial standards offshore was broadly comparable or better on average than other countries.
The IMF said this reflected the higher-than-average incomes of offshore jurisdictions, and presumably the resources committed to tackle compliance.
There is clearly no reason for complacency with the regulation of offshore centres, although this is a clear victory for the policy to 'name and shame' nations with failing standards because of the intense competition for business.
The IMF's pragmatic decision echoes one taken by the International Transport Workers Federation 10 years ago, where it redefined the aims, tactics and procedures of its campaign against 'flags of convenience'.
The ITF partially accepted the dramatic impact of globalisation and decided to include non-FoC sub-standard ships in the campaign.
The ITF recognised the reality that crew pay and physical conditions can be worse on national flag ships than on 'true' FoC vessels.
The IMF is effectively saying the same about financial centres. Just because they are 'offshore' no longer inevitably means their standards are worse than those onshore.
Vulnerability and weaknesses remain in places, and scrutiny will have to stay high. However, a significant effort has been made to remove the stigma of being 'offshore', and in shipping that will be welcomed.