In his address to the House of Assembly last week, Prime Minister Hubert Ingraham said that The Bahamas must endeavour to implement new laws which will uphold the island as a major international financial centre. The purpose of the address was to open a debate on proposed amendments to the Evidence Act 2000. In his speech, the Prime Minister argued that to ignore the need to amend tax-related laws would result in 'disastrous consequences for The Bahamas'.
Prime Minister Ingraham's concerns have arisen over his recent trip to North America where he, and some key members of his cabinet, embarked upon a series of discussions with representatives from the US and Canadian Governments and leaders of major financial institutions. The purpose of the official visit was to discuss ways of redeeming The Bahamas' good reputation as an offshore tax haven after its recent inclusion on an OECD blacklist which labelled the island as an uncooperative tax haven regarding money-laundering issues.
Over the duration of the visit, Mr Ingraham said it became clear that if The Bahamas desired the support and endorsement of the United States, The Bahamian Government would have to comply 'fully with the new internationally accepted practices now current in major financial centres in the developed world'.
Hence Mr Ingraham's address to the House of Assembly. The proposed amendments to the Evidence Act will allow evidence to be gathered in the Bahamas for proceedings in other jurisdictions for both court cases and investigations. Mr Ingraham states that the amended act 'cuts no new ground internationally ... it simply provides for The Bahamas to be in a position to live up to its obligations under international Conventions to which it is party'. He added: 'we who have responsibility to govern The Bahamas must take this necessary step in fulfillment of our obligation to the Bahamian people, financial institutions and economy.'
Prime Minister Ingraham says that competing financial service sectors in the Caribbean such as the British Virgin Islands have possessed such laws since the late 1980s, and clearly The Bahamas has to play catch-up. According to Mr Ingraham, the situation in the past has been that, due to The Bahamas' lack of legislation in compelling the Government and the private financial sector to assist in helping other governments' investigations, the country has appeared to have not shown 'good will' towards those governments and its international reputation has been damaged. He argues that The Bahamas 'inability to assist in such areas has not previously energised us to review and amend relevant legislation'.
Mr Ingraham makes particular reference to the French Government, which is currently performing investigations and awaiting assistance from The Bahamas; he says this will put The Bahamas 'in good standing with them [France] as regards international cooperation against crime and criminal activity.' He claims that the amendment is 'unquestionably in the national best interest of The Bahamas ... it is consistent with modern legal standards and practice and it fulfills our international obligations.'
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