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> Although I will always be curious why countries are letting those small, insignificant islands and countries manage all this wealth

This is easy, after all hiding cash is needed by everybody. And when it comes to finance , there are no countries only financial interest. Of course nothing bad will happen to these financial heavens, because they are protected by the richest and most powerful people and organisations.

"The Spider's Web: Britain's Second Empire"[1] gives a good overview of how this started.

[1] https://www.youtube.com/watch?v=np_ylvc8Zj8



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