The Channel Islands are the two large Islands of Jersey and Guernsey and three smaller Islands Alderney, Herm and Sark.

Jersey is the largest Island with an area of approximately forty seven square miles and a population of about 85,000 in winter up to as many as 105,000 in the summer months. The Island lies in the English Channel approximately one hundred miles from the south coast of England and twelve miles from the coast of France. Jersey is a long established, respected, international finance centre with extensive banking, legal and financial support services.

The Channel Islands are autonomous possessions of the British Crown. In simple terms they are British Islands but are not part of the United Kingdom. The Government of Jersey is known as the States of Jersey and the Island has its own currency the Pound Sterling, which circulates alongside United Kingdom currency.

The Channel Islands are not members of the European Union. The Channel Islands negotiated a special relationship with the United Kingdom and the European Union. The technical details of this relationship are set out in Protocol 3 of the Act of Accession of the United Kingdom to the European Union in 1972. Under the terms of the Protocol the Islands are able to trade freely with member States of the European Union. The Islands do not however benefit from the numerous European Union subsidies and as a result they subsidise their agriculture to an extent appropriate for their own economies.

One major benefit of not being a member of the European Union is that the Islands do not have any Valued Added Tax.

In spite of all the above the Islands are at the forefront in terms of law and a regulatory environment with regard to assisting international agencies with regard to matters such as the tracing of Proceeds of Crime, preventing Drug Trafficking, preventing Money Laundering and Prevention of Terrorism.