‘Goal posts continually’ moving on the Bahamas

As of Monday, January 23, 2017

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas “cannot operate in isolation from rest of the world” in financial services, a Cabinet Minister warning that it must respond to evolving international regulatory standards if it is to remain competitive.

Hope Strachan, minister of financial services, while addressing an industry briefing on the automatic exchange of tax information and the Common Reporting Standard (CRS), said: “Competition in the financial sector has become so intense that if we as a jurisdiction want to maintain a competitive position in the international financial community, we must be able to predict and monitor closely the changes in the international financial industry and take the necessary actions in a timely manner.”

Mrs Strachan added that the eyes of the world are “ever more focused” on international financial centres such as the Bahamas.

“Standard setting bodies, international organisations, policymakers, legislators and international media alike are intensively observing the activities of institutions and regulators operating in international financial centres,” she said. “We know for a fact that they have great interest in The Bahamas.

“The risks that our financial sector is exposed to, particularly the reputational risk, highlight our mutual dependence and the critical need for us to promote a regime that fosters high standards of governance and integrity at all times.

“In doing so, we help to build and promote the confidence of the international community in our jurisdiction, although this does not guarantee this consideration. As we are well aware, the goal post is continually moved, making it virtually unattainable.”

bogart 7 years, 2 months ago

Simple. While the Minister has been very proactive within her area there have been other areas and challenges. For instance the Central Bank has apparently allowed the Bank of the Bahamas to operate for years without meeting the world wide ability of meeting its Tier ratios and still compete against universally recognized Banks doing so, plus the govt support as listed at the end of the auditors report to support for the next 12 months or more. At persons responsible for this continued fiasco should be removed. Continued drawings of support from the govt pool to prop it up and lessen funds for other areas requiring immediate assistance of these same funds is of concern and should at least have persons responsible removed. Given the hair trigger response in modern times and with the relations with correspondent banks is worrisome as proven by the almost sudden drop in share prices from some $5 to less than $2 on a BISX share market with billions of dollars also traded by other local businesses. We could go on all day but the Bank of the Bahamas is a situation that has been going on for years and still needs some 40 million more from the bonds placement which of course lessens liquid funds from other investments and impacting growth in other areas. The Banks venture into increasing market share by giving out Consolidation loans is of concern as every loan officer will tell that after consolidating loans for alpha type customers they usually do the same thing again all over again and of course every oher bank will be happy to direct their customers needing consolidation loans there, more worries. Its about time someone pointed this out.

The_Oracle 7 years, 2 months ago

Half the problem is the constantly moving "internal goal posts" Increased regulations and compliances etc. While the internal "shifting sands" are in part intended to corral the Bahamas up to international standards it is being implemented with antiquated tools and personnel, still stuck in "who you know/who you pay off/arbitrary denial of service. To the point above, We have been borrowing money from the IMF for 50 years (and God knows who else), and are still having this discussion of the World looking at us with a Jaundiced eye? We are in full scale liver damage!

killemwitdakno 6 years, 11 months ago

It's amazing that the OECD could get every country to adopt this common reporting system to eye their money but can't get the same scheme on global labour policy, assault weapons, sex traffickers , ect.

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