"So Far So Good" Says Bahamas PM On European Talks with OECD, FATF

Mandy Robinson, Tax-news.com, London

29 September 2000

With two weeks remaining of his official visit to Europe, Bahamian prime minister Hubert Ingraham has spoken of the positive nature of meetings with members of the OECD. Mr Ingraham and his delegation, comprising key members of his cabinet, are currently half-way through a four week visit to Europe in a bid to restore The Bahamas' reputation as a leading Caribbean offshore finance centre after its recent blacklisting by the OECD as a harmful tax haven.

In Paris the Bahamas' contingent visited the OECD headquarters to meet with Secretary General Donald Johnston, Fiscal Affairs Division leader Jeffrey Owens, and head of the Tax Competition Unit, Frances Horner. At the meeting, the Secretary General praised Mr Ingraham for personally leading his delegation to Europe, and said he considered it as evidence of the Bahamas' serious intention to co-operate with the OECD.

The OECD representatives also said the organisation acknowledged the recent efforts of the Bahamas in reforming its legislation to enable the island to conform with international standards, and that it considered the Bahamas was approaching a position where it will be able to satisfy all the OECD's criteria. When it does, of course, the Bahamas will be taken off the blacklist and the "hamful tax haven" tag removed.

Not content with the OECD talks in Paris, the Bahamas delegation has also concluded discussions with members of the FATF in Madrid. The FATF has deemed the Bahamas to be a jurisdiction lacking adequate anti-money laundering controls. The objective of the Madrid talks was to clarify precisely what information influenced the FATF's decision to blacklist the island, so that - according to a Bahamas' government press release - 'informed decisions can be made with regard to remedial action to be taken by the government to enhance and strengthen its anti-money laundering processes.'

Further plans for the delegation over the next two weeks include a round of talks with bank representatives in Switzerland, and a stop-over at the IMF and World Bank meetings in Prague. The Bahamas delegation will then return to Switzerland for talks with the Swiss Minister of Finance, and various banking institutions, including the Bank for International Settlements and the Swiss Central Bank. The delegation will conclude its mission in London where Mr Ingraham will speak with the UK's Financial Services Authority and with the heads of British banking institutions operating in the Bahamas.

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