Agencies Achievements & Ongoing Initiatives
matters related to international financial centres. It is clear that these organizations have embarked on the voyage toward a global standard for automatic tax exchange, as reflected by the Common Reporting Standard( CRS) which is similar to the Foreign Account Tax Compliance Act( FATCA), established by the United States. The Bahamas is fully compliant with FATCA and has committed to CRS commencing in 2018.
Annex H
FATCA and CRS are but a few of the international initiatives that my government is following. We are also monitoring developments out of Europe with respect to the creation of a public registry of beneficial ownership for shareholders of companies and trusts. We are also following the challenges with correspondent banking and de-risking exercises affecting local banks in The Bahamas. it is important to have rules and guidelines that thwart against corruption, fraud, terrorism and other financial crimes, but it is also important that we recognize the right to financial privacy and find the right balance to maintain this.
In addition to the initiatives mentioned, my government is aggressively working toward establishing The Bahamas as an International Commercial Arbitration centre and as a hub for trade in the Chinese currency, the Renminbi. These two initiatives should provide opportunities for growing our financial services sector and creating much needed employment for Bahamians.
Our geographical location gives us a natural advantage, and the unique nature of our people brings fresh perspectives when least expected. We are undoubtedly different in our approach to financial services than our competitors, but we must continue to develop bright minds for our future sustainability as we continue to meet international obligations to ensure our industry is well regulated and operates according to international best practices.
TRADE UNIT
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2016 / 2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE
As a signatory to the Economic Partnership Agreement( EPA) since 2008, the EPA provides opportunities for trade, technical assistance and funding for The Bahamas. Under the EPA’ s 10 th European Development Fund( EDF), The Bahamas successfully secured three grants which are administered by the CDB. A grant of US $ 275,220 was obtained to establish The Bahamas Trade Information Service Desk( TIS) and Virtual Market Place in collaboration with the Bahamas Chamber of Commerce and Employers Confederation. The TIS should improve the ease of doing business in The Bahamas.
Another grant of $ 162,750.00( USD) will fund a Project for Institutional Strengthening for EPA Implementation in the Commonwealth of The Bahamas. The project will provide support to The Bahamas Bureau of Standards and Quality( BBSQ) in building a National Quality Infrastructure( NQI) to enable EPA implementation The project also aims to strengthen the EPA Implementation Unit within the Ministry of Financial Services.
A third grant of $ 107,910( USD) was obtained to assist in the development of a Caribbean Centre for Excellence for Financial Services( CCEFS) and to facilitate resources mobilization for the transitioning of The Bahamas Institute of Financial Services( BIFS) into the new CCFES. The firm CBRW has been retained and the first consultant from the firm is presently in The Bahamas having consultations with industry stakeholders.
Under the 11 th EDF of the EPA, The Bahamas and the Dominican Republic had submitted a joint proposal to enable the countries to build upon the Agreement signed by them on 24 th September, 2014. The project also seeks to enable the Bahamas Bureau of Standards and Quality to access technical assistance from the Bureau of Standards of the Dominican Republic. Additionally The Bahamas, Barbados, Jamaica, St. Kitts and Nevis and Saint Lucia have jointly submitted a proposal for funding for a project entitled Pathway to the Modernized and Efficient Caribbean Tourism Sector which aims to reduce energy cost, and send a positive message to the rest of the world that the Caribbean is taking constructive steps to reduce its carbon Footprint.
Strengthening of trade-related institutions in The Bahamas continues to be a priority of the Government given The Bahamas’ application to the WTO and its obligations under EPA. Funding from the IDB loan seeks to ensure that The Bahamas has relevant laws and institutions to comply with its trade obligations and international best practice. While a number of consultancies will be undertaken, the Ministry is mindful of ensuring that Bahamian consultants also receive necessary exposure and training to allow them to successfully compete for these consultancies under this loan.