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EU Blacklists TCI as non-cooperative; DP Saunders says ‘they’re overreacting’ 

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By Dana Malcolm  

Staff Writer  

 

 

#TurksandCaicos, March 15, 2023 – The Turks and Caicos has been listed on the EU blacklist again as of February 14th, but E Jay Saunders, Deputy Premier and Finance Minister says this is due to an excessive response from the EU coupled with compliance policies that do not make allowances for smaller economies.  

“We’re working with the EU as partners but their language– is disproportionate to what is going on. Their words are disproportionate, and their reaction is disproportionate, we’ve had this conversation and they know it,” he maintained.

He spoke to MM by phone on Monday (March 13) following our queries about why the TCI’s financial services sector was repeatedly making the dreaded ‘Blacklist’. 

The DP explained that February’s announcement was based on an October review. 

“The European Union doesn’t do their own assessments, the OECD (Organization for Economic Cooperation and Development) does them, and in order to cut down the amount of work they don’t review you every month, they review twice a year and one of them is a peer review so other countries will review you,” he continued, “so our chance to get off is basically once a year.”  

He maintained that the language used to describe countries like the TCI and The Bahamas was excessive for the perceived infractions. 

“The Bahamas said they didn’t meet their requirements around their computer systems, and they called The Bahamas non-cooperative; [that] reaction is disproportionate to the issue that The Bahamas has with their IT system,” he said. 

The same issue he says is affecting the Turks and Caicos Islands. 

“Our portal was not capturing all the data in the time frame that it should have been and so we had issues with implementation.”  

The Finance Minister explained that the systems required to comply with the EU’s expectations were extremely expensive and while countries with more robust financial services sectors like Cayman and Bermuda, who pull in hundreds of millions of dollars annually, could possibly afford it, countries with less revenue in the industry would struggle. 

“Smaller nations try to go with something cheap and the cheap systems start to give problems and the EU comes in ‘you didn’t meet the requirements you’re non-cooperative’ and that’s exactly what happened with us,” he said.  

The EU listed the Turks and Caicos among 16 jurisdictions that ‘refused to engage with the EU or to address tax good governance shortcomings as of February 14, 2023.’  

Only one tax deficiency was attached to the Turks and Caicos in the EU document. It said the TCI “Does not ensure the effective monitoring of company obligations regarding substance requirements in the jurisdiction.” 

The only reason the TCI is moving ahead so quickly, Saunders said, is an abundance of cash from the healthy tourism sector bolstering the economy and sheer luck landing them one of the best consultants in the business.  

The Turks and Caicos first landed on the blacklist in October 2022 after being put on the grey list six months earlier. The EU claims the overall goal of the list is to ‘improve tax good governance globally, and to ensure its international partners respect the same standards as EU Member States do.’  

Despite this, the list has repeatedly come under fire for being skewed. Created by EU members to assess non-EU members, it does not include or punish EU member states for their own tax practices, despite some of them being listed as the most notorious tax havens in the world. 

While frustrated with the arbitrary nature of the list, Saunders says the TCI will comply anyway and the country was working swiftly to get off of the list. 

“I think there are a lot of countries throwing their hands up but we’re not taking that approach. We’re taking the approach to say we’re gonna partner with the European Union and we’ll help them achieve what they want to.” 

A major reason behind this according to Saunders, is the country’s aspirations at having a major financial services sector that can help diversify and increase the country’s revenue, so that in the case of a pandemic, the country still runs like a well-oiled machine.   

Other regional countries joining the Turks and Caicos on the list for the time are Anguilla, The Bahamas, The British Virgin Islands, Costa Rica, Panama, Trinidad & Tobago, and The US Virgin Islands. 

Caribbean countries on the grey list currently have six months to reassess their tax practices before they are dumped onto the blacklist. Grey listed jurisdictions include Aruba, Belize, Curaçao, Dominica, and Montserrat.  

Bahamas News

Prime Minister Davis: Cannabis Reform Compendium 2024 ‘a long time coming’

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NASSAU, The Bahamas – Prime Minister and Minister of Finance the Hon. Philip Davis said on July 15, 2024, that he spoke in support of the compendium of Bills to legalise the use of cannabis for medical and religious purposes, to decriminalise the possession of small amounts of cannabis, and to “regulate the cultivation, sale and use of cannabis and related products within our borders and to promote the health and safety of our people.”

“This has been a long time coming,” Prime Minister Davis said, during his Contribution to the Cannabis Reform Compendium 2024 Debate in the House of Assembly.

“For years, Bahamians have called for an administration to have the courage to step up and take this issue on in a decisive and responsible manner,” he added.  “While many other countries, including nations within our region like Jamaica, Trinidad & Tobago, Antigua & Barbuda and Barbados, have taken steps toward decriminalisation and legalisation for medical use, Bahamians were left wondering when it would be our turn to modernise our local approach to cannabis.”

Prime Minister Davis noted that the national dialogue had been ongoing for the better part of a decade.

“Many people thought change was imminent when the Marijuana Commission began its work in October 2018, under the previous administration,” he said.  “These efforts culminated in a preliminary report delivered in January 2020 and a final report delivered in August 2021.”

He added:  “The Commission cited a wide range of in-person discussions and public opinion research, noting that there appeared to be widespread public support for the legalisation of cannabis for medical purposes.  There was also healthy support for decriminalisation and an appetite for a strong regulatory and enforcement framework to ensure high standards for this new industry.”

Prime Minister Davis pointed out that the recommendations of the Commission called for legalisation for medical use, decriminalisation for small amounts, legalisation for use as a religious sacrament for members of the Rastafarian community, as well as strict regulations to ensure the quality and safety of the local cannabis product.

“In the PLP’s Blueprint for Change, we committed to developing a comprehensive regulatory framework for growing, harvesting, and exporting cannabis to create opportunities for Bahamians,” he said.

“The approach we developed to legislating and regulating Cannabis was informed by widespread research and consultation,” Prime Minister Davis added.  “It was partially based on the CARICOM Regional Commission on Marijuana’s research and findings, as well as the approaches of other jurisdictions like Jamaica, Barbados, and Canada, where Cannabis has been legalised and regulated.”

He said that his Government’s goal was to ensure that it developed the most fair, balanced, and effective legislative and regulatory mechanisms, which would allow The Bahamas to reap economic and health benefits while promoting law and order and keeping its people safe through the introduction of stringent standards.

Prime Minister Davis added:  “Once we felt that we had an adequate draft, we released the draft bills publicly, and we held a number of stakeholder consultation sessions, led by the Attorney General’s Office, in which we sat down with major stakeholder groups like healthcare providers, leaders of our church community, advocates for legalisation, leaders of the Rastafarian community – some of whom I see here today, as well as those who had concerns about the impact of legalisation and decriminalisation on the proliferation of usage. These varied opinions were taken into account and adjustments were made to achieve the most practical and effective approach that would work best for the Bahamian people.”

He pointed out that his Government also paid close attention to ongoing research on the issue – the most recent of which, he noted, was a survey conducted nationally by Public Domain in 2023, which indicated that 61% of the population supported the legalisation of cannabis for medical usage.

“It was clear that the times had changed, and it was time for our laws to change as well,” Prime Minister Davis stated.

He continued:  “We’ve been hard at work since 2021. We knew this was not a process we could rush. There was a recognised need for carefulness and due diligence, but there was also a need to ensure that this new legislative and regulatory regime could be introduced and implemented within this term.  We could not simply kick the can down the road for our next term the way other administrations did.  No, we could not delay these changes – not when so many people had waited for years for real action to be taken.

“Today, the wait is over.”

Prime Minister Davis noted that his Government was taking action on behalf of all of the people who simply wanted the ability to legally consume medical cannabis to help them with their medical conditions.

“There are people with children suffering from epilepsy who have been praying for this moment,” he said.  “There are people with glaucoma who want the opportunity to potentially alleviate their condition with a cost-effective and natural treatment.”

Prime Minister Davis added that there were people living with auto-immune conditions, chronic pain, anxiety, depression, and other ailments who were “waiting not-so-patiently for this day.”

“We are taking action for the many men and women living with criminal records for carrying small amounts of cannabis, and the many others who will be spared criminal records as a result of decriminalization,” he said.

Prime Minister Davis stated that, as a society, his Government realised that the old approach taken against Cannabis in the War on Drugs in the 1980s and 90s did not necessarily reflect the current reality.

“Too many livelihoods have been lost because of a joint,” he said.  “Too many lives have been handicapped and potentials lost.”

He added that when he was saying that, it was not his intent to excuse those who choose to break the law.

“After all, the law is the law; it must be respected and upheld,” Prime Minister Davis stated.  “But we also recognise that the law is not static, it is dynamic. And the interpretation of the law and how it serves the greater good of society can change over time.  I am confident that many lives will be changed for the better as a result of the criminal records that will be expunged.”

“Through these reforms, we are upholding the rule of law, making it clear that if you are seeking to supply others with cannabis illegally or engage in other unlicenced and illegal activities, you will be held accountable,” he added.  “Everyone is welcome to participate within the legal and regulatory framework and only within that framework.

“Of course, as a part of this reform process, we are also taking action to recognise the rights and freedoms of Rastafarians to use Cannabis as a sacrament because it should not be against the law for our brothers and sisters of the Rastafarian faith to practice their religion.”

PHOTO CAPTION

Prime Minister and Minister of Finance the Hon. Philip Davis speaks, on July 15, 2024, during his Contribution to the Cannabis Reform Compendium 2024 Debate in the House of Assembly.    (BIS Photos/Ulric Woodside)

 

Release: BIS

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Government

Proposed Amendments for Business Licensing in TCI heard at June 4 Cabinet Meeting  

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#TurksandCaicos, July 19, 2024 – Her Excellency the Acting Governor Anya Williams chaired the 17th meeting of the Cabinet on Tuesday June 4th, 2024, at the Office of the Premier on the island of Providenciales.

All members of Cabinet were present with the exception of Governor H.E. Dileeni Daniel-Selvaratnam, Attorney General Hon. Rhondalee Knowles and the Ministers of Home Affairs and Public Safety and Utilities.  Ms. Yaa McCartney attended in the capacity of Acting Attorney General.

At this meeting Cabinet:

  1. Received a presentation from the Ministry of Finance on the proposed amendments to Business Licensing which was being put forward as a result of the consultations that had taken place and agreed next steps.

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Government

TCI Cabinet hears NHIP Change Management Plan in Meeting held April 24, 2024  

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#TurksandCaicos, July 19, 2024 – Her Excellency the Governor Dileeni Daniel-Selvaratnam chaired the 12th meeting of the Cabinet on Wednesday April 24, 2024, at the Office of the Premier on the island of Providenciales.

All members were present with the exception of the Ministers of Education, Tourism, Border Control and Public Safety who were away from the islands on official duties.

At this meeting Cabinet:

  1. Received a presentation from the National Health Insurance Plan Consultants on the organizations Change Management Program.
  2. Noted an information paper on the work of the Economic Substance Consultancy which was undertaken to provide services to the Financial Transactions Information Exchange Unit (FTIE) in regard to the previous blacklisting of the Turks and Caicos Islands which has since the engagement of this consultancy been reversed.
  3. Approved the reinstatement of the Grand Lucayan MOU for an additional six months from the execution date of the previously approved MOU.
  4. Approved the settlement of a Claim Against Government in line with a ruling of the Court.
  5. Approved the grant of a license for the beach nourishment and installation of four groins lying seaward of parcels 60703/253-263, 330, 331-342 situated at Cheshire Hall for the protection of the shoreline of the said parcels.

Further information on these matters will be provided by Ministers in due course.

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