On a late Friday afternoon on the Channel Island of Jersey, tourists and locals are flocking to St Helier's waterfront where the town's sprawling beach has emerged at low tide. In one direction, they face the calm waters of St Aubin's Bay, ringed by a seaside promenade and punctuated with a tidal island hosting the 16th century Elizabeth Castle. This was reported by Qazaqyia.kz citing The Guardian.

Back on shore, however, it is all business. Gleaming glass buildings hosting global accountancy firms and international banks hint at the £4bn offshore finance industry dominating this nine-by-five-mile island's economy.

For decades, low taxes and corporate secrecy have lured the wealth of global billionaires and multinational companies to Jersey's shores, requiring a high-paid cadre of bankers, accountants and lawyers who now make up more than half of the island's economic output, and two in every five jobs.

It has also made Jersey one of the world's richest economies, giving its 104,500 population a GDP per head that is nearly 60% higher than the UK.

But those tactics have come at a cost, not least to Jersey's international reputation, with the island consistently securing a top-10 slot in the Tax Justice Network's international tax haven rankings. It also came under fire after the Panama and Paradise papers data leaks, which shone a light on how elites were hiding wealth in offshore hubs such as Jersey.

But Jersey isn't the only place chasing global wealth, and foreign governments that have built on and replicated the island's model are now threatening to eat its lunch.

"Without urgent intervention, Jersey's future success as a financial centre is at risk, with inevitable repercussions for the Jersey way of life," a government-backed review, led by NatWest Group's former chair Howard Davies, warned in March.

In response, Jersey's government is charging ahead with a £31m four-year plan aimed at slashing red tape, boosting the British crown dependency's global profile and diversifying into popular crypto assets, all to keep it relevant in a rapidly changing world. "The risk of complacency is real," the report warns. "Standing still means falling behind."

This is not the first time Jersey has faced an economic crossroads.

Its boom and bust history stretches back to the 1700s, when it was home to a lucrative fine knitting industry. Once knitting was killed off by machines, oyster catching and shipbuilding took over, until overfishing and steam power closed shipyards.

Entrepreneurial farmers then discovered and bred new exports: the docile and milk-rich Jersey cow, followed by a blight-resistant potato that still bears the island's name, requiring a swathe of migrant workers to support farmers. "The cycle of Jersey's industries has tended to see everyone getting involved where there's a lot of money to be made," says Lucy Layton, outreach curator at Jersey Heritage.

A century later, as postwar Jersey tried to recover from Nazi occupation, tourism boomed, aided by the popularity of the Bergerac detective series. That industry was eventually ruined by discount airlines offering cheap holidays to sunnier European destinations, ushering in a new economic era focused on billionaires and corporations looking for a low-tax home for their wealth.

Jersey has crafted an alluring package to draw in global wealth, involving zero inheritance or capital gains tax, and no corporation tax – outside of financial services firms, which are charged just 10% on their earnings. Meanwhile, an army of high-earning bankers, lawyers and accountants face a maximum of 20% income tax on the island, compared with 45% in London.

But wealthy Britons have been choosing the glass towers of Dubai over Jersey's low-rise seaside towns, while rich families overseas are hedging their bets and spreading cash across a number of offshore hubs.

The Panama and Paradise papers data leaks have also influenced money flows. "People now are much more selective about the jurisdictions that they deal with," says Joe Moynihan, chief executive of the sector's promotional body, Jersey Finance. "They don't want their organisation, or indeed their family, to be associated with a jurisdiction that could potentially damage their reputation."

However, Moynihan says Jersey's reputation is strong: "We're well regulated, with plenty of expertise, good legislation and an independent judiciary, which is becoming increasingly important in the crazy world that we live in."

But Jersey is still losing ground. Authorities say they need to regain a competitive edge, including by diversifying into crypto assets – such as stablecoins and tokens – to draw a younger wealthy client. Ian Gorst, the island's finance minister, says it is also looking to cut back on "regulatory friction".

To some, that may sound like an opportunity to cut corners, but Gorst insists this is not about watering down rules meant to stop financial crime, corruption or money laundering.