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BAHAMAS: Remarks by Minister Dion Foulkes in the Senate on Multi-National Entities Financial Reporting Bill 2018

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#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

 

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Bahamas News

Where to Draw the Line? TCI and Bahamas Advance Maritime Boundary Talks

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June 16, 2026 – Thirty-four years after formal negotiations began, Turks and Caicos Islands and The Bahamas are still working to define an agreed maritime boundary between the neighbouring archipelagos, a revelation emerging from a recent Turks and Caicos Cabinet summary which has brought renewed attention to a largely overlooked diplomatic and security issue.

A May 2026 Turks and Caicos Cabinet update suggests the long-running negotiations are continuing to advance.  In August 2023, Bahamas Foreign Affairs Minister Fred Mitchell said efforts to draw an exact maritime boundary had been slowed by the challenge of gathering the mapping and locational data required for the exercise.  The United Kingdom, which represents Turks and Caicos in the negotiations, has offered few details beyond confirming that both sides remain committed to maritime boundary delimitation talks.

The negotiations are not centred on a territorial dispute but rather on establishing a legally recognized maritime boundary under international law.  Such agreements help determine jurisdiction over fisheries, maritime resources, law enforcement activities, environmental protection and migration control in the waters between neighbouring countries.

While the discussions focus on the boundary between The Bahamas and Turks and Caicos, the exercise is part of a wider maritime delimitation effort — the process of formally marking and agreeing upon where one country’s waters end and another’s begin.  In comments to The Tribune in August 2023, Mitchell referenced similar boundary considerations involving the United States and Haiti, underscoring the broader regional importance of defining maritime jurisdictions in accordance with international law.

According to public statements from The Bahamas, formal negotiations between the two sides began in 1992 and were followed by technical discussions in 1996.  After years of little public activity, talks resumed in 2023 and have continued through a series of engagements involving legal, maritime, security and geographic information specialists.

The importance of maritime boundaries was underscored by former Bahamas Foreign Affairs Minister Brent Symonette during maritime boundary discussions between The Bahamas and the United States in 2009.  At the time, Symonette described clearly defined maritime borders as essential to national sovereignty, law enforcement, fisheries management, environmental protection and efforts to combat illegal migration.  He also argued that agreed boundaries provide legal certainty and strengthen cooperation between neighbouring countries.

The United Kingdom, which represents Turks and Caicos in the negotiations, has offered few public details beyond confirming its commitment to the process.  However, officials from the Foreign, Commonwealth and Development Office participated alongside TCI representatives during talks held in Nassau in August 2023.  The Turks and Caicos delegation included then Permanent Secretary Wesley Clerveaux, whose responsibilities included Marine Affairs.

At this stage, the TCI Cabinet has only publicly identified the area under discussion as being south of “Point 1.”  Information released by The Bahamas following a 2023 meeting indicates the negotiations concern waters between the southeastern Bahamas and the Turks and Caicos Islands.  While no map has been made public, the available information places the discussions south of Bahamian islands including Mayaguana and Great Inagua.  Exactly where the proposed boundary would meet the Turks and Caicos archipelago remains unclear from public records.

The latest Cabinet update offers no indication of when the negotiations may conclude.  However, after more than three decades of intermittent discussions, recent references by both governments suggest efforts to finally draw the line between the two jurisdictions are continuing.

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Bahamas News

CDB Leadership Passes to Belize as Region Eyes New Financing Partnerships  

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By Deandrea Hamilton

 

The Bahamas, June 9, 2026 – The Caribbean Development Bank’s annual gathering may have concluded in The Bahamas, but attention is already turning to Belize as leadership of the institution’s Board of Governors officially changed hands.

At the close of the 56th Annual Meeting in Nassau, outgoing Chairman and CDB Governor for The Bahamas, Michael Halkitis, formally transferred the chairmanship to Belize’s Dr. Hon. Osmond Martinez, continuing the Bank’s tradition of rotating leadership among its regional shareholders.

The handover capped a week of discussions focused on financing development in an increasingly uncertain global environment and strengthening the Caribbean’s ability to withstand economic and climate-related shocks.

One of the meeting’s most closely watched conversations centered on how multilateral development banks can better support vulnerable Small Island Developing States.

During the President’s Chat, titled Financing the Future: MDB Strategies for Uncertain Times, CDB President Daniel Best joined leaders from the OPEC Fund, the Central American Bank for Economic Integration and the Fund for Responding to Loss and Damage to discuss expanding development finance and building resilience.

OPEC Fund President Dr. Abdulhamid Alkhalifa emphasized that development institutions must move beyond responding to crises and instead help countries prepare for them.

“The real test is whether we can help countries move from strategy to implementation, and from implementation to results,” Alkhalifa said.

The discussions reflected a growing regional push for innovative financing solutions as Caribbean nations continue to confront climate vulnerability, infrastructure demands and economic uncertainty.

Beyond discussions on financing and resilience, the Annual Meeting also featured youth engagement activities, including the Youth FIRE Forum, where young Caribbean leaders participated in conversations about innovation, entrepreneurship, leadership and the future of regional development. Senior government officials, development professionals and youth delegates exchanged ideas on the challenges and opportunities facing the next generation, reinforcing a recurring message throughout the conference: that investments made today must ultimately improve opportunities for Caribbean youth tomorrow.

That theme was echoed by Bahamas Prime Minister Philip Davis, who used the opening ceremony to challenge regional leaders to invest in future generations.

“We must invest in the one asset that no agency can ever downgrade, and that no storm can ever wash away: the mind of a Caribbean child,” Davis told delegates.

With Belize now assuming the chairmanship, regional leaders say the focus remains on transforming ideas discussed in Nassau into tangible results for Caribbean people.

Angle by Deandrea Hamilton. Built with ChatGPT (AI). Magnetic Media — CAPTURING LIFE.

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New GPS Evidence Prompts Fresh Search for Missing American Woman in Abaco

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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.

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