Announcing plans earlier this week to crack down on “tax havens, which attract little or no rates of tax,” Australian authorities said they would target countries like The Bahamas, Switzerland, Vanuatu and the Cook Islands.
According to Australian Tax Commissioner, Michael Carmody, his office would focus on schemes where people use tax haven secrecy laws to hide assets and income, which should be subject to Australian taxation.
The Australian Tax Office estimates that $10 million flows into tax havens daily.
Noting The Bahamas’ recent efforts to maintain integrity as a respected financial centre, Chairman of the Financial Services Consultative Forum Brian Moree said the country has made significant strides in implementing legislation and policies to help eliminate nefarious financial activity within the jurisdiction.
“I think it is very fair comment to say that The Bahamas now has in place a very robust and very comprehensive anti-money laundering and anti-terrorist financing regime – there’s absolutely no question about that,” Mr. Moree said.
“We in this country have fully accepted the international challenges for all countries to put on its books anti-money laundering legislation. In fact, we were one of the first countries to adopt such legislation even before the blacklisting of The Bahamas by the Financial Action Task Force,” he said.
Mr. Moree noted, however, that despite its best efforts The Bahamas would not be able to meet the expectations of all countries and international agencies attempting to reduce the flight of capital.
He also said after advising the government on key legislation like the International Business Companies and Financial Transactions Reporting bills last year, the Financial Services Consultative Forum is now looking for a new mandate.
Formed in December 2002 to advise the government on legislative and policy enhancements which could be implemented to make The Bahamas a more competitive financial centre, the advisory body was given only a one-year mandate.
Speaking with the Bahama Journal earlier this week, Mr. Moree hinted that the group’s work is not yet complete, adding that some of the recommendations, which the Forum submitted to the government, remain under review.
“We had a very busy and in my view a fairly effective first 12 months,” Mr. Moree said.
“I must say I am waiting to meet with the Prime Minister and with the Minister of Financial Services and Investments to discuss a number of issues with regard to the future role of the Financial Services Consultative Forum so we have not yet fully commenced our work for 2004 because I as Chairman of the Forum believe it’s very important to address certain important matters with regard to the future,” he said.
According to Mr. Moree, the Consultative Forum is prepared to begin work on its 2004 agenda – subject to approval from the necessary authorities – however, members of the group would like clarification on several issues first.
Some of those issues, he said, relate to the composition and role of the Forum and the group’s future interaction with a number of government ministries and other organisations.
Reporting on other measures taken to improve The Bahamas’ position as a leading financial services jurisdiction, Mr. Moree said the Consultative Forum has made recommendations to the government on methods of updating the policy, which controls the employment on non-Bahamian financial personnel.
He continued, “The Forum, working through a committee which put in a great deal of effort and time, submitted a report on the Bahamianisation policy as it relates to the financial services sector. That report was submitted to the Minister of Financial Services and Investments and was also sent to the Prime Minister.”
Continuing a push to attract more offshore business to this country, the Forum also sent a report on the External Insurance Companies Act to the Financial Services and Investments Minister recommending that IBCs be allowed to register as external insurers in The Bahamas, Mr. Moree said.
Darrin Culmer, The Bahamas Journal
