The Tribune

In recent days, Deputy Prime Minister and Minister of Finance Peter Turnquest has come out strongly in defence of The Bahamas’ position as a willing and compliant partner in the war against money laundering and nefarious attempts to use tax-friendly jurisdictions for offensive, or even illegal, purposes.

It was only last week that Mr Turnquest appeared to stand up against the OECD when once again international regulators held The Bahamas in the crosshairs of a threat to blacklist counties that failed to comply with international restrictions on money movement.

“Regardless of the progress made, no matter the commitment, the goal posts seem to keep moving,” the DPM said during the 45th annual meeting of the Caribbean Association of Banks.

We would like to congratulate Mr Turnquest for his stance, apparently fuelled by frustration and intended to send a signal to outside regulators determined to set the financial services agenda for The Bahamas that we are tired of bowing to one set of rules only to have new rules thrown at us.

While we want to acknowledge his new strength in the face of everyone else telling The Bahamas what to do, the problem is this country is still facing the legacy issues that have plagued it for years.

No sooner did Mr Turnquest issue his courageous salvo than once again we were under the microscope after it was revealed federal authorities in the US are seeking to recover millions of dollars from two local banks, suspected to be proceeds of a money laundering scheme operated by corrupt Venezuelan officials.

There is good reason foreign exchange sees us as a friendly home. We were easy in the past and culture lingers long after policy changes.

Furthermore, The Bahamas is the perfect climate for deposits, honest and otherwise. The country is a stable democracy. Its legislature traces its roots back more than 250 years. Never has there been a revolution and while there is low level corruption that is undeniable in the access of everything from Customs duties to work permits, the government attempts to be above-board and relatively transparent.

But the country continues to be plagued by legacy issues, the days of brief case banks and serious money laundering, the ineffectual management of the Bahamas Investment Authority which remains under the control of the Office of the Prime Minister instead of being independent as it should be and the promotion around the world that this is still a tax-friendly and, on some websites, a tax-free country.

So for every step forward, there are three or more steps back, someone or some entity slipping through the cracks, selling the country on what it was instead of what it can be – a secure, English-speaking, warm weather destination that welcomes honest foreign residents and investors who want to find a place that is a safe haven, not just a tax haven.

As the world becomes a more treacherous place for those of great means, The Bahamas needs to position itself and its financial services in a new light. Not as a place to dodge taxes or the law but an attractive, secure, democratic, modern and law-abiding place in which to live, work, invest and play.

By showing what it has to offer rather than what it doesn’t – taxes – The Bahamas can lead the way in a new environment of those with substantial funds who, above all, seek security for themselves and their families in a jurisdiction that has never confiscated property or engaged in revolt. By being peaceful and relatively transparent, the country has a lot to gain in a troubled world of uncertainty.

Even as we move closer to income tax or corporate taxation, there is much to boast about this country that remains estate tax free, where freedom of speech, freedom of religion and freedom of movement are as revered as the sanctity of private property ownership and a cosmopolitan environment welcoming those who bring honest business to our shores.