The Bahamas has until February to respond to the “harmful tax haven” initiative imposed by the Organisation for Economic Cooperation and Development (OECD).
That is an immediate priority of the newly appointed 33-member Financial Services Consultative Forum, headed by attorney Brian Moree.
“The pressure from the OECD is still very much alive a well. There is no question that they continue to press issues,” Mr. Moree told a press conference Monday at the Radisson Cable Beach Resort Rum Runner’s Room.
He said that the Forum would be attempting to deliver its report, specifically on the Harmful Tax Practice Initiative by the OECD, in time for the February deadline.
“Hopefully, these would be matters which the minister and her colleagues would consider to be helpful as we develop our policies on these issues,” Mr. Moree said.
The Financial Services Consultative Forum, appointed by the Government on December 4, 2002, is mandated to develop strategies aimed at repositioning the industry to better meet the needs of global financial markets.
The Forum is to also advise the Ministry of Financial Services and Investments on the state of the country’s financial services sector, the impact of competing jurisdictions and to recommend strategies, legislation and products to better position The Bahamas as a “cutting edge blue chip financial centre”.
Following the press conference, the Forum held a plenary session, and will hold its first working meeting today. Members spent the past four weeks organising themselves and dealing with administrative issues and are now ready to launch all of its 11 working committees.
“All of these committees would be working concurrently, and will all have objectives and timetables for at least a preliminary report before the end of the second quarter,” Mr. Moree said.
With regards to the Forum’s priorities, he said that the minister indicated that the financial body submits recommendations and a report on the following issues within the first quarter:
1 – The Mutual Funds Act and Regulations;
2 – The Know Your Customer (KYC) Guidelines;
3 – The International Business Licences Act (Amendments);
4 – A Foundations Bill;
5 – Anti-Terrorism Bill;
6 – The Domestic Insurance Bill;
Almost three years ago, The Bahamas was among 35 financial offshore jurisdictions labelled “harmful tax havens” and uncooperative in anti-money laundering practices by the OECD and the Financial Action Task Force) FATF). And, to remove The Bahamas from the damaging blacklist, the FNM Administration enacted radical laws aimed at bringing the country into compliance with international financial standards.
Asked by The Guardian whether the latest package of financial laws adequately addressed the OECD blacklisting, Mr. Moree said, “it is still very much alive and well.
He said that The Bahamas has to develop its response to those, but thought it premature for the Forum to reveal its proposals as it has only just begun to discuss such issues.
“But certainly we hope to provide the Government with our own views on how to deal with these issues,” Mr. Moree said. “Frankly, I see it as a balancing act.”
He continued: “The Bahamas is a responsible member of the community of nations. So there is no questions at all times we have to act responsible and in a manner, which is consistent with other countries. We have to accept that is our responsibility.”
“Yet, at the same time, we must reserve unto ourselves, the right to pursue our own industries and to develop our own economy in a way, which is consistent with international best practices.”
By Lindsay Thompson, The Nassau Guardian
