The Tribune

THE Deputy Prime Minister has pledged that the Bahamas "will no longer play catch up and risk being blacklisted" as it signed a series of tax co-operation agreements with the OECD.

K P Turnquest said this nation now intended "to be the standard setters for international financial centres (IFCs)" when it came to complying with legitimate international tax co-operation and anti-money laundering initiatives.

Mr Turnquest was speaking after the Bahamas last week signed on to the Organisation for Economic Co-Operation and Development's (OECD) Convention on Mutual Administrative Assistance in Tax Matters.

The Convention was signed at the OECD's Paris headquarters by Mr Turnquest, who was accompanied by Brent Symonette, minister of financial services, trade &and industry and Immigration, and LaTonia Symonette-Tinker, a consultant in the Ministry of Financial Services.

The Bahamas is the 116th jurisdiction to sign the Convention, which will govern the automatic exchange of tax information on a multilateral basis, together with other corresponding instruments for treaties signed with other countries. The Bahamas will begin such exchanges in September 2018.

The Convention was one of three steps taken by the Bahamas last week to strengthen its international tax co-operation assistance, and to comply with international regulatory commitments and increase transparency.

The others included the signing of the Multilateral Competent Authority Agreement, which is the instrument that allows for the exchange of financial account information between the relevant authorities of partner countries under the Multilateral Convention. The Bahamas' Competent Authority is the Ministry of Finance.

The Bahamas also made a formal commitment to join the OECD's Base Erosion and Profit Shifting (BEPS) initiative by becoming a member of its inclusive framework. BEPS is designed to prevent multinational corporations exploiting legal gaps, loopholes and mismatches in tax rates to artificially shift profits to low or 'no tax' locations where they have little to no presence.

Mr Turnquest said: "Signing the Convention sends a strong message to the international community that the Bahamas is committed to working with our international partners in adhering to international standards for tax co-operation. We will no longer play catch up and risk being blacklisted; we will be the standard setters for international financial centres."

The Convention was first developed as an OECD-Council of Europe agreement in 1988. It was amended by protocol and opened to non-members in 2010. Designed to to tackle tax evasion and avoidance, it was amended to respond to the demands of the G-20 at its 2009 London Summit that it become the international standard on exchange of information on request.

Mr Symonette added: "This week of events in the financial services industry of the Bahamas further demonstrates the efforts of the Government to properly regulate, stabilise and stimulate the Bahamian economy.

"We cannot stop now; this is the beginning of many changes to come to improve not only our reputation as a financial centre, but also the quality and efficiency of services we provide."

The Government statement added: "The Bahamas must now ready itself as new international regulatory standards begin to unfold. Financial Institutions can be assured that we will remain a compliant jurisdiction for legitimate business. We must be consistent in the fight against financial crime and other illicit activity in the enforcement of financial services regulation.

"We are turning a new page in financial services and the way we do business in the Bahamas. We will ensure efficiency and affordability in the ease of doing business for domestic and international clients, as we do all that is necessary to sustain and grow the financial services sector and protect the economy of the Bahamas.