There is an old political maxim: keep your friends close, but your enemies closer.

Whether Labour MP Joe Powell belongs in either category is open to debate. What is beyond dispute is that he is among a new generation of Westminster politicians shaping Labour's thinking on financial transparency, economic crime and Britain's relationship with its Overseas Territories. That alone makes him someone Cayman should be watching.

Powell, the Member of Parliament for Kensington and Bayswater, recently published an opinion essay for the New Economics Foundation (NEF), an influential progressive think tank that has spent four decades contributing to debates on economic and public policy. His article, Clamping Down on Dirty Money and Corruption, argues that Britain must do more to combat illicit finance by tightening company transparency, closing loopholes exploited by criminals and ensuring the UK's Overseas Territories meet the highest standards of beneficial ownership disclosure.

The Cayman Islands are not mentioned.

That is worth stating plainly because, in today's political climate, readers could easily assume otherwise.

Instead, Powell singles out the British Virgin Islands, describing it as a jurisdiction that has yet to implement fully public beneficial ownership registers while contrasting it with Gibraltar, which he cites as evidence that greater transparency need not undermine a financial centre's competitiveness.

Yet anyone who has followed Westminster's approach to offshore finance knows these debates rarely remain confined to one territory. Successive governments - Conservative and Labour alike - have often discussed the Overseas Territories collectively when considering reforms to financial transparency. Political arguments aimed at one jurisdiction frequently become legislative proposals affecting them all.

That is why Powell's article deserves attention.

Not because it is an attack on Cayman - it plainly is not - but because it offers a glimpse into the direction of travel among some within the governing Labour Party.

One of the more revealing passages concerns Baroness Margaret Hodge, the Prime Minister's Anti-Corruption Champion and one of Westminster's longest-serving campaigners against economic crime. Powell points to Hodge's government-commissioned review into UK asset ownership as an opportunity for Britain to strengthen transparency measures domestically before encouraging higher standards internationally.

Hodge has argued that tackling illicit finance is not simply a matter of ethics but of economic credibility. As she recently observed:

"You will never get sustainable growth on the back of dirty money because you lose your reputation."

Whether one agrees with her prescription or not, it reflects a philosophy that continues to influence Labour thinking on financial services regulation.

For Cayman, none of this should come as a surprise.

Premier André Ebanks met Powell in June 2025 during meetings in London aimed at strengthening relationships across Westminster. The photograph accompanying this article captures that engagement. At the time, it was one of many meetings with parliamentarians whose views could shape future UK policy towards the Overseas Territories.

That engagement now appears particularly well judged.

Governments cannot choose who emerges as an influential voice in another country's parliament. They can, however, ensure those voices understand the realities of Cayman before policy positions become entrenched.

The Cayman Islands Government has consistently argued that the jurisdiction should be assessed on objective international standards rather than outdated assumptions about offshore finance. It maintains that its regulatory framework has evolved significantly over the past decade and continues to strengthen in line with recommendations from the Financial Action Task Force (FATF).

That message was reinforced on 12 August 2025, when the Government announced the creation of the Office for Strategic Action on Illicit Finance (OSAIF), a dedicated body tasked with coordinating the jurisdiction's anti-money laundering, counter-terrorist financing and counter-proliferation financing strategy ahead of the Cayman Islands' next Caribbean Financial Action Task Force evaluation. Announcing the initiative, Premier Ebanks said:

"The establishment of OSAIF reflects our unwavering commitment to effectiveness, not just technical compliance. We must demonstrate that the Cayman Islands can swiftly and cohesively respond to the evolving threats of illicit finance, while meeting the FATF's expectations for tangible outcomes."

He added that the office would help ensure Cayman remained "at the forefront" of evolving international standards by proactively mitigating risks, demonstrating measurable effectiveness and protecting the jurisdiction's international reputation.

That is, in many respects, the central tension.

Westminster's debate increasingly revolves around transparency, public registers and political accountability. Cayman's response is that it is already meeting rigorous international standards and that effectiveness - not political rhetoric - should be the benchmark by which jurisdictions are judged.

Those are not mutually exclusive positions. But they are different conversations.

Powell's article is not government policy. Nor does it represent an official Labour Party platform. Think tanks exist to test ideas, provoke debate and influence policymakers rather than dictate legislation.

History suggests, however, that today's think tank paper can become tomorrow's ministerial briefing.

That is why Cayman should read articles such as Powell's carefully - not defensively, but strategically.

Understanding how influential politicians frame issues is just as important as responding once legislation reaches the UKs Parliament.

The meeting between Ebanks and Powell in June 2025 was a reminder that diplomacy is not simply about engaging with friends. It is about building relationships with those whose ideas may one day affect your interests.

After all, in politics, keeping your friends close has always been sound advice.

Keeping an even closer eye on the people shaping tomorrow's policy may be wiser still.