Money laundering is also bad for the economy and development in that it undermines legitimate business, competition and reduces the tax revenue to national authorities as launderers would be operating underground outside the tax net. The combating of money laundering presupposes the existence of capacity and resources at national level.
This too failed as Barbados would not proceed without assurances from the British on the financing of the new entity. Barbados went on to its own independence in 1966 and the islands were virtually left in constitutional limbo. They then began searching for a way out of the situation with discussions on the nature of the relationships with the British and with each other.