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BAHAMAS: AG Bethel addresses financial services industry officials on Register of Beneficial Ownership Bill

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#Bahamas, May 23, 2018 – Nassau – The recent introduction of the Register of Beneficial Ownership Bill, 2018 in the House of Assembly, provided the Government of The Bahamas with an opportunity to take a proactive stance against certain global initiatives the country is currently facing with regards to the financial services industry.

And also signaled “the urgency for the Administration to have a meaningful consultation on this issue” with members of the local industry.

Tabled in the House of Assembly on Wednesday, April 25 (2018) by Deputy Prime Minister and Minister of Finance, the Hon. K. Peter Turnquest, the Bill  — in a nutshell — seeks to provide for the Competent Authority to establish and maintain an electronic database of beneficial ownership details for all corporate and legal entities registered in The Bahamas.

It further seeks to permit search of the database of every corporate and legal entity registered or resident in The Bahamas by a designated person upon the request of a specified authority designated in the Bill.

“It is not set in stone.  The Bill that we tabled is there for your review.  It is there for your input and we will determine whether to proceed with the Bill, to amend the Bill, to shelve the Bill (or) to come with some other structure or arrangement,” Attorney-General and Minister of Legal Affairs, Senator the Hon. Carl W. Bethel, QC, told industry insiders and regulators.

“But at the end of the day, the message that I have to say is that we cannot only look at one of the several initiatives and feel that if we satisfy them, it’s going to satisfy all.  These are interrelated and coordinated initiatives being orchestrated through various organs in the European Union particularly, and they must all be addressed simultaneously and comprehensively and not believing we can bunker into one and satisfy that and that that is going to satisfy the rest,” Attorney-General Bethel added.

Addressing a recent Industry Development Series on International Initiatives Impacting Financial Services hosted by The Bahamas Financial Services Board (BFSB) in collaboration with Graham Thompson during which he provided a legislative overview of the Bill, Attorney-General Bethel said the issue of Beneficial Ownership, while not directly tied to the BEPS Initiative (Base Erosion Profit Sharing) is directly tied to the Financial Action Task Force’s (FATF) position.

Base Erosion and Profit Shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.  Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS measures and tackle BEPS.

Senator Bethel said there is a “resonance between the two.”

“I speak about the ‘Concert of Europe,’ which was a historical relationship, and event maybe 200 years ago.  It is the same concert now in terms of coordination between powers, coordination of initiatives, coordination of the whole strategy.

“It’s one picture, one initiative, but in different forms (and) so even though BEPS isn’t obviously concerned with beneficial ownership, if you read the criteria notes, it starts off by saying that this is aimed and targeted at opaque offshore structures.

“So what causes (those structures) to be opaque? Lack of accessible beneficial ownership information; lack of information as to how this company in The Bahamas relates to that company in the Cayman Islands, relates to that company in Switzerland because the structural relationship between these entities all around the globe, is opaque and it is through the initiatives of beneficial ownership that they seek to clarify that opaqueness for their purposes.

“And so even though beneficial ownership regimes are becoming a greater focus of the FATF, we can’t only believe that it is only the FATF that requires clarity as to beneficial ownership and accessibility to beneficial ownership information.”

Mr. Bethel said the initiatives began as early as 2014 when the G20 endorsed the international importance of financial transparency, particularly transparency of beneficial ownership, legal persons and legal arrangements to prevent the misuse of corporate entities.

Subsequently, Finance Ministers and Central Bank Governors requested that the G20 Anti-Corruption Working Group provide concrete actions the G20 would take in order to lead by example with respect of beneficial ownership transparency and the implementation of the relevant Financial Action Task Force standards.

“And so once again, it’s a host of different organizations in a sense, fulfilling each other’s prophecies.”

Attorney-General Bethel said The Bahamas, like many of its regional and global counterparts, is engaged in a titanic struggle to reposition a major part of their economies and to grapple with the ever changing and the ever-increasing demands of the world.

“This is a struggle that affects not only The Bahamas, but every country in this region and indeed every financial centre in the world,” the Attorney-General said. “I had reason at an earlier briefing to point to the travails similar to ours affecting a major centre known as Luxembourg and it’s not just us, and [so] I suppose we can take some small comfort in that.”

 

By: Matt Maura (BIS)

 

 

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Caribbean Bottling Supports the 27th Basketball Smiles Week  

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NASSAU, Bahamas — Caribbean Bottling Company (CBC), local producers of Coca-Cola and Dasani products, is proud to once again support Basketball Smiles for their 27th year.

Upholding its corporate pillar of community outreach, CBC proudly donated $2,000, over 75 cases of Dasani, Powerade and Sprite, reusable Powerade water bottles and numerous marketing materials.

The annual sporting summer camp offers free basketball and life skills training to Junior and High School students.

Basketball Smiles’ mission of developing leadership qualities while fostering children’s academic achievement and self-esteem aligns perfectly with CBC’s commitment to supporting and empowering youth.

Jazmin Darling, Assistant Marketing Manager for Caribbean Bottling Company shared why the company continues to support this program each year.

“At CBC, we believe investing in our youth is one of the greatest ways to strengthen our communities. We’re proud to support Basketball Smiles each year because it goes beyond the game. This program champions healthy lifestyles, positive values and brighter futures. It’s a privilege to play a role in helping these young athletes reach their full potential each year,” she shared.

Sam Nicholls, Basketball Smiles Camp President and Founder expressed.

“Caribbean Bottling Company is an incredible partner. We are truly grateful for their generous support, which will go a long way in making a positive impact on the lives of our campers,” Nicholls expressed.

CBC is always ready to lend its support toward initiatives and programs that uplift young Bahamians. The impact Basketball Smiles makes on the community is undeniable and is why CBC remains a historic sponsor.

For more information on sponsorship, events and new products, visit www.cbcbahamas.com today.

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CWS Supports Transforming Spaces with Premium Products and Unique Cocktails

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CWS brand representative for Bottega and Excellsior wines posing with attendees enjoying glasses of Bottega Gold Prosecco at the National Art Gallery of The Bahamas.

NASSAU, Bahamas — Caribbean Wines and Spirits (CWS), The Bahamas’ premier wine and spirits distributor is thrilled to once again lend its support to Transforming Spaces (TS).

CWS is a proud historical partner of the annual art week which highlights Bahamian art and art spaces. Under this year’s theme, “Chasing Light” Transforming Spaces and Caribbean Wines & Spirits created a memorable art experience.

To mark 21 years of the upliftment and exposure of culture and Bahamian art, CWS offered award winning wines St. Francis, Rebellious, Bottega and Excellsior; premium spirits, Cross Keys Gin, El Tequileno Tequila, Angostura Rum and Nemiroff Vodka, along with the newly added Coors Light Beer from its portfolio.

To kickstart the annual art week, CWS delighted attendees with a tasting of globally renowned Bottega Wines at TS’ Poetry Jam, held at ICE Bahamas. Throughout the event, Bottega brand representatives shared tasting notes, ideal pairings, and insights into the brand’s portfolio.

During the highly anticipated Saturday and Sunday tours, CWS showcased its premium products at select art galleries.

Attendees enjoyed Rebellious and St. Francis wines at The Current: Baha Mar Art Gallery and Museum, Bottega and Excellsior wines at the National Art Gallery of The Bahamas, Coors Light beer at the University of The Bahamas Pro Gallery and hand-crafted Schweppes mixes featuring Cross Keys Gin, El Tequileno Tequila, Angostura Rum and Nemiroff Vodka at CAB Gallery & Studio.

Throughout the two-day tour, CWS product specialists enriched the experience by providing a deeper appreciation for their exceptional beverage portfolio.

Members of the Transforming Spaces Committee expressed their appreciation towards CWS’ support after another successful art week.

“Transforming Spaces is deeply grateful for the continued support of Caribbean Wines & Spirits over the years. Their partnership has become such an important part of the TS experience, helping us create welcoming and vibrant moments for our audiences across the tour weekend. From signature wines and cocktail bars to refreshments at gallery stops and pop-up events, their contribution brings an added sense of hospitality, celebration, and connection to the journey through Bahamian contemporary art.” — TS2026 Committee.

Caribbean Wines & Spirits is proud to partner with Transforming Spaces in supporting and elevating the voices and works of Bahamian artists and looks forward to strengthening this partnership for years to come.

To learn more about CWS’ involvement in the community, follow on social media @caribbeanwinesandspirits or visit the website at www.cwsbahamas.com today.

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Caught in the Net, Not Accused of Wrongdoing

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What the Attorney General must do now to protect Bahamian exports

Deandrea Hamilton | Editor

NASSAU, Bahamas — The United States’ decision to impose a 12.5 percent tariff on Bahamian exports is about more than higher costs for seafood, rum and other goods entering the American market. It is a warning that The Bahamas must move quickly to strengthen or clarify its legal framework governing forced labour and supply-chain enforcement.

The tariff, which takes effect July 24, is part of a sweeping U.S. trade action affecting 60 economies following a review by the Office of the U.S. Trade Representative (USTR). The review concluded that the listed countries have not adequately prohibited or enforced measures against goods linked to forced labour in global supply chains.

The action follows a recent U.S. Supreme Court ruling that invalidated an earlier series of Trump-era tariffs imposed under emergency powers. In response, the Trump administration shifted to a different legal authority—Section 301 of the Trade Act of 1974—using findings from a U.S. Trade Representative investigation into forced-labour compliance to support a new round of tariffs affecting 60 economies, including The Bahamas.

Importantly, the action does not accuse Bahamian businesses of using forced labour. Instead, it reflects the U.S. view that The Bahamas’ legal or enforcement framework does not yet meet the standard Washington expects.

That distinction matters.

The Attorney General’s Office now has the responsibility to lead the country’s legal response. That begins with determining precisely what concerns the U.S. Trade Representative identified, reviewing whether Bahamian law adequately addresses those concerns and, where necessary, recommending legislative or regulatory changes. If deficiencies exist, legal amendments and stronger enforcement could help position The Bahamas for removal from the tariff list.

The government may also seek formal discussions with U.S. officials while those reforms are undertaken, outlining a clear timetable for compliance and demonstrating that the country is committed to meeting international labour standards.

A Nassau Guardian front-page report on July 24 drew attention to the tariff action, prompting broader questions about why The Bahamas was included among the 60 economies affected by the U.S. trade measure and what steps are now needed to restore full confidence in the country’s trade framework.

For many Bahamians, the immediate concern will be the fisheries sector, one of the country’s largest export industries. Commercial shipments of lobster, conch, fish, crawfish and other products entering the United States could become more expensive because of the additional tariff, potentially affecting exporters’ competitiveness.

The broader lesson is that international trade increasingly depends not only on quality products, but also on strong business relationships and confidence in the legal systems that govern them.

For The Bahamas, this is less a finding of wrongdoing than a reminder that international credibility is earned through modern laws, effective enforcement and trusted partnerships. The challenge now is for the Attorney General’s Office to lead a swift legal review, identify any deficiencies and chart a clear path toward compliance so Bahamian exporters are not burdened any longer than necessary.

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