2010 To Be A Transitional Period For The Bahamas: BFSB

by Phillip Morton, Investors Offshore.com

11 January 2010

The Bahamas Financial Services Board has said that following the widespread adoption of the Organization for Economic Cooperation and Development (OECD) standard on transparency and information exchange to establish a ‘level playing field’ during 2009, 2010 will be a year of transitions for the territory. Privacy concerns remain a high priority, however.

“Over a decade ago, the OECD sought to have the Bahamas implement its standard for transparency and tax cooperation. The Bahamas’ response to the OECD standard was to insist that all countries implement the same standard at the same time as the Bahamas."

"As 2009 draws to a close, the Bahamas continues to fulfill its commitment to clients and the OECD, as the OECD standard is being implemented in all major countries providing financial services to a global clientele,” the BFSB said in a statement, dated January 1.

The statement added:

“We expect 2010 to continue to be one of transition as the global economy and the financial services industry adjusts to the new paradigm, and the financial centers continue their journey towards a level playing field."

"BFSB remains unequivocally engaged in the pursuit of an ever-improving platform for owners of capital to conduct their international business, to manage their private wealth and to make the Bahamas their home.”

The Financial Services Board continued: “The transformation of the global economy has not left the Bahamas’ financial services industry unchanged. With ten tax information exchange agreements signed, and another two of the already initialed agreements scheduled to be signed in the coming weeks, the Bahamas aims to meet the OECD standard well in advance of the G20 deadline of March 2010. We are expecting this process, aligned with global trends, to continue with the tabling in parliament of legislation to bring the agreements signed in 2009 into force and a series of TIEAs being negotiated over the coming years. BFSB believes the decision to endorse the OECD standard reinforces the Bahamas’ unwavering commitment to be a trusted jurisdiction for clients and to be a responsible member of the international community."

Concluding, however, it reinforced its commitment to “the principle that persons have a right to privacy with respect to the conduct of their affairs".

"Moreover, respect for the rule of law always has been fundamental to the success and strength of the financial services industry in the Bahamas. As such, clients can be assured that the Bahamas will only exchange information on agreed and transparent protocols, in order to prevent so called ‘fishing expeditions,’” the BFSB reassured.

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