Bahamas News
BAHAMAS: Remarks by Minister Dion Foulkes in the Senate on Multi-National Entities Financial Reporting Bill 2018
#Bahamas, May 28, 2018 – Nassau –
Contribution
by
Senator The Hon. Dion A. Foulkes
Minister of Labour
during
Communication
in
The Senate
Monday, 28 May, 2018
Madam President,
I rise to move for the second reading and committal of the Multi-National Entities Financial Reporting Bill 2018.
This Bill is the first of a projected series of Bills which are necessary to enable The Bahamas to fully comply with its obligations as a member of the inclusive framework of countries who have decided to join the Base Erosion and Profit Shifting (or “BEPS”) project which was launched by the European Union.
The Bahamas agreed to join BEPS in December, 2017 and we were then Blacklisted in March 2018.
As has been announced by The Minister of Finance and DPM the Blacklisting was lifted last week.
The Europeans are using their collective economic and financial strength to compel compliance with their initiatives designed to recover any taxes which might be lost to their Ministries of Finance, due to the operations of tax havens and offshore financial services centres.
Many Bahamians justifiably ask why do we accept such unrestrained exercise of extraterritorial power by the EU; why do we comply? The short answer is that ‘we must comply’.
Just as when the USA implemented the Foreign Accounts Tax Compliance Act (FATCA) in 2014, the whole world was forced to implement the automatic exchange of tax information on all US Citizens who held bank accounts either in their own names or in a company registered in a foreign country. The untrammeled power and financial strength of the USA was enough to compel all to comply.
The PLP, who were in government at that time, duly complied, along with the rest of the world, because failure to comply would have resulted in the imposition of harsh “counter-measures” by the US, and the loss of the ability to utilize international wire transferring mechanisms such as the SWIFT system which is controlled by the US.
For any country, the loss of such privileges and the imposition of economic sanctions would have had a disastrous impact, much more so on a small and open economy such as The Bahamas, where more than 90% of our tourists come from the USA.
The Europeans have similar powers as the USA in the financial services arena. Hence, a Blacklisting could easily have resulted in the loss of correspondent banking relations, where banks abroad, and particularly in Europe, could easily have decided to take “de-risking measures” by shutting off commercial relations with banks and financial institutions located in The Bahamas, on the basis that The Bahamas is a “risky jurisdiction”.
If correspondent banks in Europe were to stop taking deposits of money or payments made from The Bahamas, the effect would be exactly the same as if we were cut off from the SWIFT system by the USA; namely, that money could not go out of or come into The Bahamas by a wire transfer.
Business would come to a screeching halt and the economic damage would be devastating and long-lasting for the Bahamian economy.
Madam President, these are the harsh realities of today’s world. It is all about Tax collection. Period.
The BEPS project is a very complex initiative which essentially reflects a surgical and precise stab at the very heart of the established practices and ways of doing business in the offshore financial services sector.
There are five issues which are being tackled by the BEPS initiative, as noted by the EU’s Code of Conduct Group in their called “Agreed Guidelines”, namely:
When assessing whether such measures are harmful, account should be taken of, inter alia:
whether advantages are accorded only to non-residents or in respect of transactions carried out with non-residents, or
- whether advantages are ring-fenced from the domestic market, so they do not affect the national tax base, or
- whether advantages are granted even without any real economic activity and substantial economic presence within the Member State offering such tax advantages, or
- whether the rules for profit determination in respect of activities within a multinational group of companies departs from internationally accepted principles, notably the rules agreed upon within the OECD, or
- whether the tax measures lack transparency, including where legal provisions are relaxed at administrative level in a non-transparent way.
It should be noted that the present Bill only addresses the 4th consideration.
This Bill imposes what is called “Country by Country” reporting requirements on entities registered or incorporated in The Bahamas which are “constituent entities” in a Multi-National Entities (MNE) international business structure. If the head office of the MNE (or “parent”) is a company in The Bahamas then it must report.
Also a Bahamian company which is a part of the MNE can become a “surrogate parent entity” and thus be obligated to make annual country by country reports if designated by the Parent entity to do so, or if the actual Parent entity is registered or incorporated in a non-reporting country (usually a so-called rogue state, or a country that for some reason is “not obligated to make country by country reports.
This Bill enjoys wide support in our financial services sector because it is designed to have a very limited impact, namely it applies only to MNE entities in The Bahamas which are a part of the Companies Structure of a Multinational Corporation (such as IBM, EXXON, Google etc) which earns an Annual Gross Turnover in excess of $850,000,000.
So a Bahamian company or Parent Company which is a part of a MNE or transnational Company which earns a gross turnover of less than $850 Million each year would be entirely unaffected by this Law.
While this providential issue is one where there is a possibility of maximum compliance on this one issue, with minimal disruption to the financial services sector, we must ever be aware that between now, today, and the 31st December, 2018, we must pass laws to address the other four remaining issues in the listing of so-called “harmful measures”.
They are in short, (1) ring-fencing – This issue really encompasses two of the five ‘considerations’, numbers 1 and 2.
Those two issues deal with circumstances where offshore Companies such as IBCs enjoy no taxation (or minimal or only nominal taxes or fees), and where the domestic economy has to bear the overwhelming burden of business licence and other forms of taxation; and, also, while offshore companies are prevented from participating in the domestic economy, or only permitted to do so on special terms;
(2) Substantive requirements – only where an offshore Company or business entity has a substantive presence and “real economic activity” in the jurisdiction will it be allowed to receive or claim any tax benefit from being registered in The Bahamas, and only in such circumstances of “substantive activity” (office rentals, real value-added activities, employment of staff, and so forth) will it be possible for an offshore entity to be eligible for the granting or international recognition of the grant of tax benefits;
(3) Transparency – This is the third issue remaining to be addressed. In short we will have to pass a Law to codify the National Economic and the Bahamianization policies. The National Economic Council will have to be created in Law, while today, it is merely an administrative sub-committee of Cabinet.
Madam President, there is already a fifth lurking issue, and it is the international push towards increasing transparency of beneficial ownership of all offshore business entities.
This issue is only just heating up. More pressures will come, and come soon. The EU Council of Ministers and Parliaments have recently in their 5th Anti Money Laundering Directive (“5th AMLD”) mandated all EU countries to implement greater access to beneficial ownership information of Companies in European Countries. Access to transparent beneficial ownership information of all Companies and IBCs as well as offshore entities by Law Enforcement Agencies is already a specific Mandate by the Financial Action Task Force (FATF).
As Bahamians, we must be aware of the constantly changing international landscape and be ready to act quickly and decisively to avoid any further reputational damage to The Bahamas and any future Blacklisting.
So Madam President, it is my privilege to recommend this Bill to the approval of the Senate.
As I stated already it is truly “an industry Bill” which has been settled in direct consultation with the financial services sector, and which enjoys widespread support.
I therefore, move that this Bill be read a second time and committed, if I may obtain a seconder.
Release: BIS
ABACO, BAHAMAS — Nearly two months after American sailor Lynette Hooker vanished in waters off Abaco, investigators are preparing
to conduct a new search based on GPS and navigation data that reportedly challenges the account originally provided by her husband.
The case, which first drew international attention in early April, began when Brian Hooker told authorities that his wife was swept away after falling from an inflatable dinghy during rough conditions in waters near Elbow Cay.
Initial search efforts involving Bahamian and U.S. authorities covered extensive areas of the Sea of Abaco but failed to locate the missing Michigan woman.
Now, according to multiple U.S. media reports, investigators have obtained electronic navigation and GPS data that appears to place the couple’s dinghy in a different location from where searchers initially concentrated their efforts.
The new information has prompted authorities to reopen search operations and seek permission for divers to examine a more targeted area of the Sea of Abaco.
Unlike the broad search that followed Hooker’s disappearance, the renewed effort is expected to focus on a relatively shallow section of water, reportedly about 25 feet deep. Investigators believe the location may offer a better opportunity to recover evidence and potentially answer lingering questions surrounding the disappearance.
The latest development marks a significant shift in the investigation.
What began as a maritime search-and-rescue operation has evolved into a complex multinational investigation involving Bahamian authorities, the United States Coast Guard and the Federal Bureau of Investigation.
Brian Hooker was detained and questioned by Bahamian authorities following his wife’s disappearance but was later released without
charges. While investigators have never publicly accused him of a crime, reports indicate he remains a person of interest as authorities continue to examine the circumstances surrounding the case.
Hooker has repeatedly denied any wrongdoing and has maintained that his wife accidentally fell overboard.
The investigation has intensified in recent weeks. U.S. authorities have reportedly seized the couple’s sailboat, Soulmate, transporting the vessel to Florida for forensic examination. Investigators are said to be reviewing onboard electronics, digital records and other potential evidence as part of the ongoing inquiry.
The case has also attracted attention from Lynette Hooker’s family, who have continued to press for answers and support efforts to locate her.
The renewed search comes after Brian Hooker returned to the United States following the disappearance. Reports indicate he cited family reasons, including concerns about his mother’s health, for leaving The Bahamas.
For investigators, however, the focus now appears fixed on the newly identified search area and the electronic evidence that led them there.
Whether the latest operation produces answers remains to be seen. But nearly eight weeks after Lynette Hooker disappeared in the waters of Abaco, authorities believe new technology and new information may finally provide a clearer picture of what happened that night.
NASSAU, BAHAMAS — Regional policymakers, development financiers, economists and international partners are converging on Nassau this week as the Caribbean Development Bank (CDB) stages its 56th Annual Meeting at the Baha Mar Resort from June 1-5, 2026.
Held under the theme, “Forging the Caribbean’s Future: Strategic Solutions for Uncertain Times,” the gathering is expected to
place The Bahamas at the center of discussions on some of the region’s most pressing challenges, from climate resilience and energy security to debt sustainability and economic growth.
At the launch of the annual meeting on March 19, CDB President Daniel Best underscored the importance of bringing together leaders from across the Caribbean and beyond at a time of global uncertainty.
“The Annual Meeting provides a strategic moment for the Caribbean, an opportunity for our leaders, governments, development institutions, private sector, youth, and international partners to come together to identify practical solutions that can help the Region navigate uncertainty while unlocking the opportunities that lie ahead,” Best said.
The conference host, newly named Bahamas Minister of Finance and Chairman of the CDB Board of Governors, Michael Halkitis, also emphasized the significance of the event during the March 19 launch ceremony.
“Today’s gathering marks more than the start of preparations for an important meeting. It represents the beginning of a renewed conversation about the future of the Caribbean, about our shared aspirations, our common challenges, and the partnerships that will shape the path forward for our region,” Halkitis said.
He added: “Hosting the 56th Annual Meeting of the Caribbean Development Bank here in Nassau provides an important opportunity to strengthen partnerships and advance meaningful dialogue on the future of the Caribbean.”
Over the five-day meeting, delegates will tackle major issues including energy transition and resilience, innovative debt solutions for Caribbean economies, and the impact of global economic shocks on regional development.
The programme features a number of high-level events including the Youth FIRE Forum, the William G. Demas Memorial Lecture, the
President’s Chat titled Financing the Future: MDB Strategies for Uncertain Times, and a series of policy seminars examining climate finance, infrastructure, economic resilience and development lending.
Among the featured participants are CDB President Daniel Best, Finance Minister Michael Halkitis, senior officials from multilateral development banks, regional finance ministers, central bank governors, economists, development specialists and private-sector leaders. The President’s Chat is expected to bring together leaders of major multilateral development banks to discuss financing strategies for developing states facing mounting economic pressures.
The annual meeting also includes sessions branded “EDGE X by CDB: Analytics Unlocked,” which will explore the economic costs of traffic congestion in the Caribbean and how global crises continue to affect regional economies.
The CDB Annual Meeting traditionally attracts representatives from the Bank’s 28 member countries, including government ministers, senior public officials, development agencies, international financial institutions, youth delegates, academics and private-sector stakeholders. Hundreds of delegates are expected to participate in discussions that will help shape development priorities and financing strategies across the Caribbean in the years ahead.
Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.
May 29, 2026 – Two years after The Bahamas made history as the first Caribbean nation to host the African Export-Import Bank’s Annual
Meetings, thousands of delegates are expected to gather in Egypt next month for AAM2026.
The 33rd Afreximbank Annual Meetings will be held from June 21-24 in El Alamein, Egypt, under the theme: “Intra-African Trade and Industrialisation: Pathway to Economic Sovereignty.”
The event is regarded as one of Africa’s most important gatherings on trade, investment, finance and economic development, bringing together heads of state, policymakers, business leaders, development finance institutions and international partners.
For Caribbean nations, the meetings hold special significance.
In 2024, The Bahamas welcomed thousands of delegates to Nassau for the landmark event, marking the first time the annual meetings were staged outside the African continent and placing the Caribbean at the center of growing discussions on Africa-Caribbean trade and investment.
Since then, Afreximbank has continued to expand its engagement in the region, promoting stronger commercial ties between Africa and Caribbean countries and exploring opportunities in trade finance, infrastructure development, logistics, investment and private sector growth.
Organizers say this year’s discussions will focus on strengthening intra-African trade, advancing industrialization, building regional value chains and increasing economic resilience amid global uncertainty.
The meetings are also expected to provide a platform for new partnerships, investment opportunities and development initiatives that could have implications beyond Africa, including for Caribbean nations seeking to deepen economic cooperation with the continent.
As leaders prepare to convene in Egypt, the Caribbean’s growing relationship with Afreximbank remains a key part of the institution’s broader vision of expanding trade and investment connections across the Global South.
Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.
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