Bahamas: BFSB News Briefs

The OECD broadly defines harmful jurisdictions as those that both offer zero or low tax rates and lack legal and administrative transparency. The original report -- widely considered as contrary to international law -- attracted criticism from the OECD's own Business & Industry Advisory Committee. BIAC publicly stated that it had not been consulted during the preparatory phase of the project undertaken by the OECD Committee on Fiscal Affairs (CFA) and stated that such prior consultation of the business community "would have made the Report a more balanced document". BIAC further urged that no new obstacles to cross border trade and investment be promoted by the OECD -- either for its own member states or important non-member states.

The inter-governmental Financial Action Task Force (FATF), whose Secretariat is based at the OECD, this year released a report describing a process designed to identify non-cooperative jurisdictions in the international fight against money laundering -- and to encourage the implementation of international standards in this area. This initiative began last year with the development of criteria to identify detrimental rules and practices that impede international cooperation. The criteria are consistent with the international anti-money laundering standards set out in the FATF's "The Forty Recommendations", a document outlining the basic framework for anti-money laundering efforts, for universal application. The Caribbean Financial Action Task Force (CFATF) - of which The Bahamas is an active member - has added an additional nineteen recommendations, specifically relating to the combat of money laundering.

In the Speech from the Throne at the Opening of the current Parliamentary Session, Governor-General Sir Orville Turnquest affirmed that The Bahamas plans to maintain its international reputation as a clean, well regulated jurisdiction, hostile to money laundering or any other financial crime. As part of the overall package to protect the industry against external pressures, such as those being applied by the OECD, the Governor General forecast further amendments to the Money Laundering (Proceeds of Crime) Act of 1996. He noted that these amendments would fully satisfy recommendations coming out of the Caribbean Financial Action Task Force (CFATF), and also indicated that legislation would be tabled to repeal the Foreign Tribunals Evidence Act. Replacement legislation will simplify and make more efficient The Bahamas' cooperation with foreign jurisdictions in legal proceedings. Already in 1999, the Reciprocal Enforcement of Foreign Judgements Act and Amendments to the Money Laundering (Proceeds of Crime) Act provided for the registration of external confiscation orders. The Bahamas presently has Mutual Legal Assistance Treaties (MLATs) with the United States, Canada and the United Kingdom.

Within the United Nations system, other anti-money laundering initiatives have been introduced. Under its Global Programme on Money Laundering (GPML), the UN created The Offshore Forum -- with the objective of obtaining global commitment to internationally accepted standards of financial regulation and anti-money laundering measures as they apply to the provision of cross border financial services. At the Offshore Forum hosted in the Cayman Islands earlier this year, it was agreed that all international financial services centres should be invited to enter - as soon as possible, and no later than 30 September 2000 - into a formal governmental commitment to minimum standards relating to this objective. The Forum brought together some 100 participants from 45 jurisdictions, including The Bahamas.

Of particular note coming out of the Forum's deliberations was a conclusion that "high standards of financial regulation and anti-money laundering measures do not inhibit and, indeed, there is evidence that they encourage, the growth of legitimate cross border financial services".

"The consensus reached (at this Forum) represents a groundbreaking step in the global fight against money laundering," said Pino Arlacchi, Executive Director of the UN's ODCCP. "I strongly believe that as we move forward together, we can make rapid progress in denying access to criminals seeking to legitimise proceeds from illicit activities."

Also of particular relevance in light of some of the initiatives against international financial centers was the Communique statement: "In the provision of cross border financial services the distinction should not be drawn between so-called on-shore and off-shore jurisdictions but between those that are compliant and those that are non-compliant in the application of the accepted international standards."

On the U.S. front, there have been legislative initiatives aimed at providing the U.S. with new powers to act against foreign countries deemed to pose a money laundering threat; specifically, the International Counter-Money Laundering Act 2000 (H.R. 3886). The Clinton Administration initiative calls for the U.S. Treasury to issue a "black list" of so-called tax havens. Jurisdictions so identified would be threatened with draconian measures, including a possible ban on U.S. correspondent banking relations with the worst offenders. United States officials have maintained that their focus is not "against" international financial centres; rather, the primary intention is to put pressure on citizens to obtain the necessary information on taxation matters. Other U.S. measures impacting the financial services industry in The Bahamas include new qualifying intermediary regulations governing withholding tax. Slated to become effective January 1, 2001 the new procedures will impact the holding of US securities by 'foreign intermediaries". Again, this measure targets US persons beneficially owning US securities and seeks to ensure they do not avoid payment of taxes due on earnings or sale of such securities. The financial services industry in The Bahamas, led by The Association of International Banks & Trust Companies, is studying this matter and its impact on both US and non US clients.

The Annual Report of the International Narcotics Control Board (INCB) took note of the efforts of Governments in the Caribbean to work together to reduce money-laundering and tax avoidance in their financial centres. Of special note was the Board's report that the judicial system in The Bahamas has been improved to speed up the investigation and prosecution of persons involved in money laundering. The Report commented specifically that significant resources have been invested in law enforcement in The Bahamas.

(The INCB is the independent and quasi-judicial control organ for the implementation of the United Nations drug conventions, and operates independently of Governments as well as of the United Nations)

At a Small States Conference held in London earlier this year, the World Bank, IMF and WTO all confirmed the right of countries to compete in international financial markets through the provision of both onshore and offshore financial services. At that same conference, the OECD indicated willingness to engage constructively with Small States on tax competition issues. Another conclusion arising from this forum was that the provision of transnational financial services - whether by onshore or offshore institutions - carries with it international responsibilities. These were defined as operating practices and regulatory standards sufficient to safeguard the international banking and financial system, and to prevent financial and tax crime.

The Bahamas Government has gone on record with its intention of attaining and maintaining "the very highest levels of conduct as a model jurisdiction, complying with the highest standards to prevent the abuse of its financial system by money launderers and criminal elements". Minister of Economic Development Carl Bethel recently announced that in order to preserve the financial services sector, The Bahamas is "prepared to embrace change".

A primary mandate of the soon-to-be-established Financial Intelligence Unit will be the investigation and prosecution of money launderers. This is the latest initiative in the ongoing process undertaken to ensure The Bahamas' international reputation as a reputable, self-regulating financial centre.

"..laxity in the enforcement of anti-money laundering laws and regulations will continue to provide the excuse for ever-escalating pressure, unless we adhere to and even exceed the highest standards of reporting, vigilance and oversight." Minister Carl Bethel

Editor's Note: Since going to press, Prime Minister H.A. Ingraham has released a public statement relating to the various international initiatives challenging offshore financial centres. This can be viewed at www.bfsb-bahamas.com under News/International Issues.

The Minister of Finance has presented The Bahamas’ first balanced budget since 1973.

The maintenance of economic expansion, now in its sixth consecutive year, has been fuelled by record foreign investment inflows (significantly in the tourism sector) and steady growth in financial services and construction.

The keynote address was presented by Prof. David Bickford, former Legal Counsel to the British Foreign Office as well as to the British Security and Intelligence Services. Prof. Bickford was influential in the framing of the Anti-Money Laundering Legislation in both the UK and its Dependent Territories. His address to the conference dealt with the nature of the offshore world in the third millennium - the new international order -- and specifically the need for competitive taxation in the global market. The future of e-commerce was viewed as presenting a limitless horizon of boundary free commerce.

Professor Bickford also addressed the issue of the rights of offshore financial centres to compete in the international market place, not only by providing competitive financial services but also by offering competitive taxation. He pointed out that now that the OECD has retreated from its policy of declaring low or zero tax regimes as being harmful, the offshore community can sensibly address the regulatory, transparency, and information exchange needs of the industrialised community.

The conference concluded with "Master Classes" on issues such a Anti-Money Laundering Techniques, Offshore Private Banking, and Offshore Litigation.

BFSB was a co-sponsor of the Conference, with Executive Director Barry J. Malcolm presenting a Paper on "Caribbean Update", highlighting developments in the Caribbean Offshore Financial Services, and the impact of various international initiatives. A copy of this presentation - and others - may be viewed on the Offshore Institute Website: www.offshoreinstitute.com.

To serve our respective financial service organisations and the Bahamian financial marketplace by seeking to enhance the role of compliance within the Bahamian environment, thereby enhancing public trust in, and to better ensure the integrity of, the expanding Bahamian financial service industry.

Top items on the agenda for the 2000 event were investment and international crime, with the forum providing the opportunity for awareness building within the international community of the vulnerability of Caribbean states to the pressures of economic globalisation and narcotics trafficking.

The Bahamas delegation, led by Attorney General and Minister of Foreign Affairs Janet Bostwick, took full advantage of this opportunity to promote The Bahamas as a reputable international financial centre. The Minister was the lead speaker on the topics of Money Laundering and the OECD Harmful Tax Initiative, and reiterated that all CARICOM countries have undertaken to co-operate fully with international efforts to combat money laundering.

Also reported were steps by the region to undertake a comprehensive study of best practices for regulating the financial sector, with a view to adopting uniform standards. Caribbean participants pointed out that the most effective method of dialogue and consultation is a multilateral forum where international standards can be agreed and developed by all on a global basis.

UK representatives stressed that it was not the intention of recent initiatives to force offshore centres out of business and that in future the distinction would not be between onshore and offshore centres, but rather "..between those jurisdictions which meet international standards and those which do not". These points were endorsed by both the US and OECD representatives participating in the Forum.

Another important component of the two-day Forum was dialogue relating to sustainable development through trade. James Smith, Bahamas Ambassador for Trade & Investment, said "The U.K. (together with its overseas territories) and the CARICOM countries discussed how institutional building and technical assistance could enlarge trade opportunities for the Caribbean".

Editors Note: Following the Forum, Bahamas representatives participated in a Meeting of Law Ministers and Attorneys-General of Small Commonwealth Jurisdictions in Jersey, Channel Islands. This provided another opportunity for the region to describe the frameworks already put in place to regulate the provision of financial services and to assist foreign jurisdictions in the investigation and prosecution of offences. Specific concerns of the small jurisdictions will be included in the Secretariat's report on the subject of Harmful Tax Competition to Commonwealth Finance Ministers in September 2000.

Initiatives relating to tax harmonisation, in particular, were presented as "immoral, an infringement on sovereignty, and a major block to economic development".

Presenters and delegates stressed the need to recognise money laundering -- often unfairly treated as being synonymous with offshore centres and tax avoidance -- as a global problem requiring a global response and solution. Not as a problem arising from offshore centres and one for which punitive action must be directed towards these jurisdictions.

In line with calls for developing an action plan already initiated in international settings such as the UN's Offshore Forum and the UK/Commonwealth Forum (see separate articles), the one-day event espoused the formation of a Coalition of Caribbean Services Industries, to address issues such as:

Notwithstanding the general feeling that market forces will prevail and that offshore centres will continue to attract business, the need for proper regulations and supervision was seen as imperative.

Seminar speakers included Ian Fair, Gregory Bethel and Barry J. Malcolm of the co-sponsoring Bahamas Financial Services Board, as well as high ranking officials from the US Federal Reserve Board, the European Policy Forum,and the International Monetary Fund. The Bahamas Government has publicly supported the call by the G-7 Financial Stability Forum to involve the IMF in a more aggressive supervisory role for international financial services.

Miami-based Americas Software Corporation recently unveiled a new software package to the financial services community in The Bahamas -- ASSIST//customerknowledge. The programme is intended to facilitate procedures by which banks can detect and analyse suspicious activities - e.g. money laundering -without impacting the bank secrecy laws of The Bahamas. The software simply analyses money flow into the accounts, examining irregular transaction volume and amounts. Recent proposed amendments to the Money Laundering (Proceeds of Crime) Act calls for disclosure of information in cases of reasonable suspicion of money laundering. Previously, disclosure was mandated only in cases of known money laundering activity. The Payments and Compliance Solutions Group of Thomson Financial Publishing (TFP) recently rated the client server-based ASSIST//ck programme as "the best on the market". Americas Software Corporation reports that already banks in the United States, Central and South America, Europe and Asia have signed on as clients for this "efficient, easy-to-use system that keeps them in compliance with international regulations and standards".

In developing its very first programme of work in the early months following its inauguration, the Bahamas Financial Services Board targeted education programmes as one of the areas to which it should devote resources. This was considered an integral part of its overall mandate of promoting the financial services industry in The Bahamas.

Working in close consultation with the financial services industry, BFSB has produced a careers primer for distribution within all secondary schools throughout The Bahamas. In accepting the first copy of BFSB's "Guide to Careers in Financial Services", Minister of Education & Youth Senator the Hon. Dame Ivy Dumont said "This is a very valuable publication and it will have excellent application within the schools targeted. The Ministry of Education & Youth certainly supports this initiative and will work with BFSB to ensure wide circulation within the school system -- both here and in the Family Islands."

The BFSB Guide provides a general overview of the industry, identifying key positions in each of the industry sectors, listing both the technical and personal skills necessary, and the "hot" jobs. The Addendum provides useful contacts and resources.

Executive Director Barry J. Malcolm explained that BFSB decided to target 9th and 10th graders because " … this level represents the 2nd and 3rd years after they have begun their secondary level education, with another 2- 3 years to go before the transition to the work place or the beginning of tertiary level education. At this stage, they are right in the middle of identifying the necessary classes and courses for their future education and/or business activity."

Effective April, 2000 BFSB relocated to new premises. The office is now located on the 4th Floor of the British American Insurance House, Marlborough Street (previously the Euro-Canadian Centre). Telephone & Fax numbers remain the same.

A recent cross-sectoral study by the Nassau Tourism & Development Board determined that certain segments of the business community are experiencing workforce shortages. In extreme cases, employers participating in the survey cited actual cases where expansion plans have had to be shelved because of this problem. "Many employers are responding to the skills shortage problem with substantially increased investments in training as well as enhancement of salary/benefit packages offered employees" said the NTDB.

The Bahamas Government has allocated almost 20% of the capital budget for the year 2000/2001 towards education. During Budget discussions, Minister of Finance William Allen said that "the future lies in ensuring that The Bahamas becomes a knowledge-based economy and society".

Education must be a primary focus in any developmental strategy. Technology advances, in particular, provide easier access to global information and enhances the ability to take advantage of the opportunities in the global economic market.

The industry and the Bahamas Government have committed to continuing and expanding training opportunities for young Bahamians in private banking, trust services, accounting, information technology, insurance, law, management, and foreign languages. This is in line with the endorsement by CARICOM governments of a major overhaul of the region's education system, and the broad commitment to achieving universal secondary education by 2005 and to doubling the number of college and university students. Throughout the region, countries are supporting this initiative by embarking on reform processes to address both quantitative and qualitative aspects of education.

BFSB is looking to initiate or expand support to existing programmes in a number of areas:

"In general, we in the Caribbean are tweaking our education systems to poise our region to take full advantage of the information and technology revolution" State Minister for Education Zhivargo Laing

In London, the team met with the International Underwriting Association, Leopold Joseph, The Royal Bank of Scotland, SG Hambros, and KPMG. Each meeting provided the opportunity for a first-hand exchange on latest developments in the financial services industry of The Bahamas. The BFSB member companies hosting the various presentations invited their respective principals and operations personnel, in addition to intermediaries currently doing business or wishing to conduct business with The Bahamas.

The Friends of The Bahamas (London) and Bahamas High Commission provided support with the London schedule of meetings, and hosted the delegation to a Reception and Dinner.

While in Jersey and Guernsey, BFSB delegates met with industry counterparts for reciprocal presentations on responsibilities and issues in developing financial services. They also took the opportunity to discuss matters of mutual concern impacting international financial centres -- including OECD initiatives. In addition, meetings were organised by BFSB members Chase Manhattan, MeesPierson, and Leopold Joseph for promotional presentations similar to those conducted in London.

• Population 300,000
• GDP $4.5 billion
• GDP (per capita) $12,000
• GDP Growth 5-6% (1999) 3-4% (est. 2000)
• External Reserves $460 million (May, 2000)
• Inflation 1.3%
• Unemployment 7%
• Currency B$1 = US$1

• the development of enabling legislation and a strategy for The Bahamas to become a global leader as an electronic commerce and communications hub; and
• the development of domestic e-business and the attraction of foreign business to The Bahamas to achieve growth in the point- of-sale function of e-commerce business, and the necessary transfer of technology.

The results to be gained through the facilitating of electronic commerce and by enabling the financial services industry to compete on this global platform, were seen as multi-faceted:

• Creation of new jobs and entrepreneurial opportunities
• Creation of an investment structure in education and training, providing Bahamians with the skills to undertake not only the significant secondary jobs created but also the primary high technology positions
• Creation of new and additional foreign revenue streams, designed to bolster and support the Bahamian economy
• Strengthening of Gross Domestic Product (GDP)

BFSB representatives served on the National E-Commerce Steering Committee, participating in the consultative exercise over a five-week period leading to the drafting of an action plan submitted to the Cabinet. It is anticipated that a permanent E-Business Steering Committee will be established, with the mandate of providing input into e-business strategic decisions from a national and industry perspective. Also proposed is the establishment of Industry Cluster Groups, mandated to coordinate and implement focused industry strategies and identify actions needed to remove constraints. The role of the Government is viewed as the development of policy, removal of barriers, and the generation of input from the business community and citizens. Accordingly, recommendations have been tabled for the creation of an E-Business Government Policy Board.

Along with other industry cosponsors, BFSB recently joined the host Bahamas Chamber of Commerce in co-ordinating a one-day educational seminar under the heading "Positioning The Bahamas for Global Competition: The Development of E-Commerce". Speakers from the United States and Canada joined with local government and service providers presenters. An overriding point made throughout the day was that the same principles developed to give The Bahamas a competitive edge in offshore financial services would benefit the development of e-commerce, an industry earmarked by the Government to become the third pillar of the local economy. Major presentations from the Seminar can be viewed at: www.infovision-nassau.com/ecommerce

Economic Development Minister Carl Bethel points to the advantages inherent in a "new economy" built on an average 3% annual growth.The Bahamas Government has launched a major initiative to place The Bahamas on the cutting edge of the new field of e-commerce. This, combined with the "new economy" opens up undreamed of opportunities for the direct marketing of Bahamian goods and services throughout the world on the Internet.

Change of the "International Business Company" name

Elimination of Bearer Shares

The option to register with the Companies Registry

The requirement to maintain certain records in The Bahamas

The option for continuation of a IBC as a domestic company

Standardised Articles of Association

With regard to the last four issues, industry consensus was that relevant amendments should be made to the Act. On the other points, there was no consensus to change the provision of the Act relating to bearer shares, and the prevailing industry view was that there should be no change of name.

The Government has indicated interest in possible amendments to the IBC Act, specifically changes considered in the best interest of The Bahamas as a responsible international financial centre, while maintaining a competitive position vis a vis other centres. The Minister of Finance has pointed out, however, that any such changes will not be made with regard to external pressures but, rather, to reflect "that The Bahamas is a recognized financial centre, functioning with a clearly defined structure, regulatory regime and government devised policies to ensure the future of the industry".

Designed to upgrade professionalism in members of the Bahamas Real Estate Association (BREA), the first-ever Bahamas Real Estate (BRI) designation course has been introduced. The BRI designation is a replacement for the Graduate Realtor Institute (GRI) designation.

The introduction of new insurance legislation incorporating innovative features unique to The Bahamas

The high cost of conducting insurance business – both onshore and in some of the other offshore insurance centres

Changes in onshore tax laws (notably in the US and Canada) that have removed most of the remaining tax advantages of offshore trusts and corporations

The continuing need for new products for the very substantial Bahamian banking and trust community

In response to this interest, The Government of The Bahamas and the private sector have made available the requisite legal, regulatory and professional infrastructure to facilitate both the rapidly growing offshore life insurance sector as well as the reestablishment of The Bahamas as a captive insurance centre.

The Bahamas now has responsibly regulated but user-friendly and progressive legislation for almost all types of insurance business. The industry is supervised through the office of the Registrar of Insurance. The legislation and supporting regulations specify the minimum levels of reporting that are required, although the Registrar may request additional reporting for business that is deemed to be higher than normal risk.

For captive insurance companies the main responsibility for the ongoing operations of such entities rests with the "captive manager". This must be a Bahamian company, set up for the purpose of providing management and providing insurance expertise to captives, and holding an appropriate license issued by the Registrar.

In addition to the above, all insurance companies are subject to annual audit in accordance with generally accepted accounting principles by an independent auditor. Most of the major accounting firms have a presence in Nassau and can provide this service.

At present the Bahamian international insurance industry is focussed on two markets – Life Insurance for the US market and Captives:

Whilst still in its infancy, this market is growing rapidly in response to recent tax changes in the US. Life insurance provides a legitimate compliant alternative enabling access the US market.

The term "Captive" Insurance Company is used generally to describe an insurance company that insures the risks of its owners who are not in the business of insurance. In its purest applications, it is a means of self-insurance but the reality is that many captives now buy reinsurance and do a proportion of their business with third parties.

The Bahamas is well set up as a jurisdiction to provide the appropriate legal and regulatory infrastructure for captive insurance business. The offshore environment changes constantly in response to economic, fiscal and regulatory changes onshore. The Bahamas has proved to be proactive and flexible in responding to these changes and its reaction to the burgeoning demand for offshore insurance products is a good example of its sensitivity as a jurisdiction in the volatile financial services marketplace. Both the Bahamian Government and the private sector are committed to ensuring the continuance of this approach.

The demand for insurance services is driven by The Bahamas' extensive institutional presence that already has an extensive network throughout the global financial community, ultimately the source of this business.

According to a report by Merrill Lynch and Gemini Consulting, ultra-high net worth individuals now number 50% more than they did three years ago. During 1999 alone, the "million dollar club" welcomed more than one million new members worldwide, taking the total to seven million, with combined assets of $25,500 billion. By the year 2004, this new class of globetrotting super rich is expected to have amassed financial assets totalling $44,900 billion.

Factors contributing to the rise in fortunes include real GDP expansion across the globe, the global stock market growth, the rush of technology stock market launches, the record number of family businesses coming on the market; and the increasing use of stock options as part of executive compensation packages.

Private banks and other wealth management institutions are being forced to rethink strategies for attracting the fast expanding elite.

"This is a significant milestone in the history of the Bahamian capital markets and I would sincerely like to thank the Securities Commission of The Bahamas for the concerted effort they have made recently to expedite and approve the BISX Registration Application" commented Ian Fair, the recently elected first Chairman of BISX.

Subsequently, the Bahamas International Securities Exchange began live trading on Friday, May 12, bringing to fruition years of planning and preparation for what has become the first new Stock Exchange of the 21st Century and the first exchange to be launched as a demutualised shareholding company from its inception. Trading was officially launched by The Governor General His Excellency Sir Orville Turnquest who placed the first buy, with the first sell order placed shortly thereafter by The Minister of Finance, The Hon. Sir William Allen.

"This new capital market institution is going to significantly encourage Bahamian entrepreneurship and will provide new opportunities but, above all, from our point of view, it will encourage the expansion of Bahamian savings which we believe is an essential factor for the further development of the Bahamian economy, particularly the domestic Bahamian economy" Sir William said.

Securities are being traded through registered brokers, using a fair and transparent electronic trading system on BISX. For the listed companies, this means that the exchange will be the central point of trading, and the central point of releasing price sensitive information into the market place.

"Our goal is to increase the volume of shares traded on the market, as this will lower the costs in the market place. We also hope to have some quick wins on the international side in the area of mutual funds" said Brian Taylor, Chief Executive Officer of BISX.

Domestic trading was launched with 11 of 16 publicly traded companies listed and two Broker/Dealer Members. As the market and the Members adjust to the new method of trading there are increasing numbers of orders being entered in the system on a daily basis. Also, many of the unlisted companies are at various stages in the process of becoming listed on BISX.This suggests that the BISX automated trading system is becoming widely accepted.

"The launch of BISX means that domestic Bahamian companies now have a choice in terms of raising capital – they can raise both equity and debt, either from the private sector, through the exchange, or via banks" stated D’Arcy Rahming, Chief Operating Officer of BISX. "This choice should certainly lower the cost of capital and therefore improve economic growth for our country" added Mr. Rahming.

To obtain up to date detailed information on BISX statistics visit the website at bisx.bahamas.com. Eventually it is BISX’s intention to open up the order book on the web, enabling investors to log in from their homes and see the price at which securities are trading in the regular market in real time.

BISX next phases will be to automate the settlement process, then to launch its international side. This phased strategy was determined to be the best approach to give the market time to convert existing processes for both settlement and trading.

The Securities Commission of the Bahamas has announced plans to establish a Special Unit charged with supervising the development and regulation of the local securities markets. The Securities Industry Act 1999 and pending Regulations 2000 vest powers to the Securities Commission, and have been designed to ensure that the securities markets in The Bahamas are fair and equitable. The Commission's plan includes a sizeable investment in training for Unit employees, to keep abreast of international standards and regulations. The Securities Industry Team is expected to be in place soon, joining the Commission's Compliance Group and Mutual Funds Team, the latter with responsibility for administering the Mutual Funds Act/Regulations.

Other speakers addressed issues such as anti-money laundering initiatives, with particular regard to the need for unified action by the financial services industry to protect the international "best practices" reputation of The Bahamas.

Pauline Allen-Dean of BFSB Member The Bank of the Bahamas and President of the Institute of Bankers, pointed out that the growth of Bahamian talent and expertise is paramount in nation building and strongly supported the need for a Bahamas Training College for Financial Services, similar to efforts undertaken for the nation's number one industry, tourism.

(Editor's Note: BFSB currently is spearheading a review process relating to the establishment of a National Training Centre for the Financial Services Industry)

At a recent Board of Governors meeting held in The Bahamas, the Caribbean Development Bank addressed member country adjustment to new dynamics in the global economy and pledged continued assistance in responding to the challenge of a new economic era. CDB President Sir Neville Nicholls pointed out the need for a shift in output pattern from a reliance on protected agriculture and inefficient manufactures to an emerging service sector.

According to the President, "..The Bahamas has pioneered the development of a comprehensive services economy that is a model for the whole world", and an especially important model for the Caribbean region.

Bfsb-bahamas.com not only fulfills the Board's promotional mission, but also provides a high-value member service. Since its launch the site has been utilised to answer a high volume of online enquiries relating to the industry – general information as well as opportunities. BFSB's site showcases the industry around the globe and leverages the web's capability of putting the world in touch with The Bahamas.

It is BFSB's aim to maintain a site of ongoing interest to the market and members; to capture opportunities for membership input and engagement; and to provide exceptional customer service.

Recent additions to bfsb-bahamas.com include a FAQ section, a Recruitment Centre for posting of vacancies by member companies, and an Industry Legislation feature.

Banca del Sempione (Overseas) Ltd.

Credit Suisse Trust Limited

International Portfolio Analytics

Seymour & Co.

Sovereign (Bahamas) Limited

StarCapital Securities Ltd.

Suisse Security Bank & Trust

The Private Trust Corporation

Worldwide Trust Services Limited

• Top Performances: For the one year period ending March 2000, The Bank of The Bahamas reported growth of total assets from $195 million to $225 million. Bank profits for the three month period ending March rose 40%.

• Congratulations to Graham, Thompson & Co., celebrating 50 years in operation.
• RTA: Finance Corporation of the Bahamas (FINCO) has appointed Colina Financial Advisors as its Registrar and Transfer Agent (RTA).
• SG Hambros Bank & Trust (Bahamas) Limited has transferred its local Registrar and Transfer Agency (RTA) business to Fidelity Merchant Bank & Trust. The transaction means that Fidelity has become the leading provider of RTA services in The Bahamas, and it allows SG Hambros to concentrate resources on the further development of its pension, mutual fund and private banking operations.
• International Endorsement: AM Best, an international organisation engaged in insurance firm rating, has awarded an "excellent" rating to Bahamas First General Insurance Co., a first for the country. The evaluation included a comprehensive review of quantitative and qualitative aspects of BFG's management, financial data, and reinsurance programmes
• IPO Prospectus On Line: Commonwealth Bank has become the first Bahamian Company to place its IPO prospects on line - at www.commonwealthbankltd.com.The Bank launched an Initial Public Offering in April, as part of 40th anniversary celebrations, with the goal of increasing its subscriber base by some 3,000 new shareholders. The Bank reported an over subscription of 140%, the highest on record in The Bahamas. With $1/2 billion dollars in assets, the Bank's capital now stands at over $100 million.
• Bahamas Yellow Pages Plus: Benchmark Publishing has launched the first ever local digital Yellow Pages Directory. The Directory is national in scope - including business listings indexed by professions, goods and services for the entire Bahamas. Country statistics are included as well. Yellow Pages Plus is available to users and subscribers over the Internet at the company's website as well as on CD-ROM.
• The Fidelity Group of Companies recently launched its third Bahamian dollar-denominated mutual fund. The College Investment Plan is designed to pool investor monies for the purchase of a variety of stocks and bonds.

Annual General Meeting Host: BFSB

Latin American Tour Argentina, Uruguay, Chile, Brazil Host: BFSB

SHOREX Uruguay 2000 Conrad Hotel Punta del Este, Uruguay Host: Shorex Ltd, London (www.shorex.com)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances from a local lawyer or accountant.