Though the Cayman Islands is involved in no major international disputes, they have come under some criticism due to the use of their territory for narcotics trafficking and money laundering. In an attempt to address this, the government entered into the Narcotics Agreement of 1984 and the Mutual Legal Assistance Treaty of 1986 with the United States, to reduce the use of their facilities associated with these activities. In more recent years, they have stepped up the fight against money laundering, by limiting banking secrecy, introducing requirements for customer identification and record keeping, and requiring banks to co-operate with foreign investigators.
Why didn't the United States and other developed countries criticize the Cayman Islands for allowing tax evasion? There was significant criticism against the Cayman Islands for allowing drug trafficking and money laundering, but there doesn't seem to have been significant criticisms against it for allowing companies to avoid paying taxes through offshore companies. Is there a reason why?