There is a moral case for tax havens that can be conveniently overlooked, the head of a global advice firm says, as a major anti-corruption summit takes place in London today.

The summit comes hot on the heels of last month’s leak of millions of the so-called Panama Papers from law firm, Mossack Fonseca.

In the run up to today’s international gathering, there have been repeated calls to clamp down on or shut tax havens in a bid to fight global corruption.

Nigel Green, founder and CEO of deVere Group, said corruption must be stamped out but added: “The economic and financial plusses are only part of the story as to why tax havens should be defended. There is a moral aspect too.”

He said: “They offer financial refuge for those who live in nations where there is economic instability, leading to, for example, major currency volatility and out of control inflation; and/or where there is political unrest and persecution from government and the ruling classes.

“In such places, corruption is often widespread, crime is rampant, and expropriation is a regular occurrence. Those from political, ethnic, religious or sexual minorities - and arguably especially the wealthier ones - are, perhaps unsurprisingly, common targets of crimes, such as kidnap, and/or state-approved discrimination and persecution.”

Mr Green said: “Tax havens offer fiscal protection to these people by providing a secure place for their assets to help them avoid criminals and/or questionable political regimes. Understandably, they want to keep their assets in a safe and well-run jurisdiction.

“Tax havens’ laws that are favoured by some for their tax efficiency are also used by others needing bona fide financial refuge and protection.

“And it is also worth remembering that tax havens aren’t just the often quoted 'treasure islands'. The UK, for example, is a tax haven for Chinese and Russian nationals living in Britain.”

Mr Green said: “The London summit should serve to further enhance the effectiveness and credibility of these international financial centres and the sector. This is especially important as the industry is set to grow exponentially in the coming years as individuals and companies become ever more globalized." 

The vast majority of the offshore sector only provides services that are fully compliant and legal and are used by law-abiding clients looking for better returns and more investment options, he added.

At today’s summit it has been announced that 40 jurisdictions, including a number of Overseas Territories and Crown Dependencies with major financial centres will automatically share beneficial ownership information.

The UK will host the first ever International Anti-Corruption Coordination Centre in London to strengthen cross-border investigations.