Ladies and gentlemen, it is a great
pleasure to speak to you this morning to examine the manner in which the
Ministry of Financial Services & Investment is working to reposition the
financial services sector in The Bahamas.
I first wish however, to take this opportunity, ladies and
gentlemen, to thank Ms.
Bartlette and the CEO Network for providing this opportunity for us meet and
exchange views.
The once quiet, unnoticed world of
financial services has become the focal point for international attention and
increased global competition. The end
result is that people and capital can move freely and instantaneously in an
environment of unprecedented choice when it comes to where they want to vacation
or do business. My government is
willing to do whatever it takes to ensure that The Bahamas is seen as a viable
choice for financial institutions and their clients.
In The Bahamas, the Financial Services
sector contributes between 15 – 20% of the Gross Domestic product (GDP) and
creates a wealth of high income generating jobs. More than 13,000 Bahamians are
employed in this sector and it provides a yearly payroll of some $360 million.
The sector also yields more than $12million annually in tax revenue.
In spite of these statistics the
government recognizes that The Bahamas is simply scratching the surface of this
vibrant worldwide industry. The
creation of the Ministry of Financial Services & Investment reflects the
government’s policy commitment to promoting Financial Services as a key driver
and enabler of The Bahamas’ economic prowess.
The Ministry has been given full license to take all necessary measures
to build awareness and to heighten the appeal and reputation of our Financial
Services sector.
We believe that The Bahamas’ enjoys
unique advantages.
The Bahamas
·
imposes
no income, capital gains, inheritance, payroll taxes - some would consider the
Bahamas a financial paradise solely on this factor. It is important to recognize, particularly in light of OECD
arguments, that the Bahamas has never imposed a direct taxation system. Therefore, the rules of the game are the
same – international persons who chose to do business or to live in the Bahamas
receive the same benefit that Bahamians do.
There is no ringing fencing of taxation regime.
·
has a
strong respect for the privacy of persons.
As you know, the term bank secrecy is used as a common lexicon in OECD
communication. However, I think this
could only result in a breakdown in communication. In 1996, the Bahamas criminalized money laundering – one of the
first international financial centers to do so - this law was firmly supported by the international banks who
formerly introduced into their codes of conduct in the 1980’s adherence to
international KYC best practices.
Further, our legislative adjustments of 2000, place the Bahamas
comfortably among the pace setters in ensuring transparency through
comprehensive KYC systems and respecting the privacy of clients as supported by
the UN principles.
·
Has a
strong Democratic history – more than 270 years of uninterrupted
democracy. Identified as a model of
transition to independence.
International status consistent
with Canada and Australia. Continuation
of full adherence to law and peaceful transitions of political power, active
participant in Commonwealth. The
Bahamas is stable – a feature that is very attractive in a volatile world
·
Business
facilitation by the government – my Ministry is here to let you know that you
are welcome in the Bahamas. We are
hopeful that we will have an opportunity to role out the red carpet for you as
you grow your businesses in the Bahamas over the next few years. One word about the red carpet – we are
committed to ensuring that the private sector has the tools to succeed.
·
Our
commitment to excellence in education and professional development, the
existence of an independent judiciary, a sound fiscal environment and strong
public – private sector relations all build a compelling story of why The Bahamas
is a sound investment.
Last
year my Ministry worked together with the private sector on a Strategic Plan
for the Financial Services sector, because we all recognized the need to
enhance the economy by repositioning and expanding financial services and
to re-claim competitive advantage without compromising integrity of sector.
In
the Strategic Plan, it was agreed that we would promote The Bahamas as a “Blue
Chip, Well Regulated and Cooperative” Financial Centre. We would not be second best. We would sit at the table as a responsible
participant in the financial services industry, recognizing that The Bahamas
has a place alongside London, New York, Switzerland, Singapore etc.
The Ministry therefore has concentrated
over the past year in shoring up the regulatory foundations of the Financial
Services sector to protect and enhance the attractiveness of The Bahamas. To facilitate this goal and in keeping with
our policy to involve the private sector in making the decisions which affect
their industry the Financial Services Consultative Forum was established. The Forum is a “Think Tank” of experts from
the private sector and its primary role is to advise the Government and the
Ministry of Financial Services and Investments generally on policy matters
pertaining to or affecting the economy and specifically the financial services
sector.
With the assistance of the Forum, the
government has successfully introduced and passed the e-commerce legislation
and the Investment Funds Act. With the
Forum’s continued assistance the government intends to shortly introduce:
In closing I wish to reiterate that the
government is committed to providing a well regulated financial centre and that
The Bahamas remains open for business.
I look forward to having the opportunity to discuss with you on an
individual basis how your business would benefit from a presence in The
Bahamas.