The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net


 THE global financial services industry is shifting to ever-greater transparency, the Financial Services Minister warning that the Bahamas must be committed to competing in this “new normal”.
 Speaking at the launch of a regional US Foreign Accouunt Tax compliance (FATCA) conference, Mr Pinder said: “We as an industry must be prepared to accept that what we are subject to under FATCA will only be the start of the new normal.

“The global paradigm is shifting to an expectation of transparency globally. We have been witnessing this evolution over the last 15 years from when legislative changes were made for anti-money laundering purposes in the early 2000s, to the implementation of TIEAs, to the imposition of OECD and FATF recommendations, and now FATCA.

“We, however, have developed a significant level of local expertise. We must be committed to competing in this new normal; we can be industry leaders.”
 Mr Pinder added: “In the implementation of FATCA we all have certain responsibilities, both government and private sector.”

He added that a FATCA advisory committee has been formed to review the US Act’s requirements, and make recommendations on the way forward for the financial services sector of the Bahamas.

“It was this FATCA advisory group of private sector representatives who would partner with my Ministry to prepare for the beginning of negotiations on FATCA. This FATCA Advisory Group prepared a strategy document for the Government to consider in its preparations,” said Mr Pinder.
 He added that the costs of compliance with FATCA, both to the Government and the private sector, is a significant cause of concern throughout the region.

“This includes costs of internal preparation for FATCA, and costs related to the educational needs, said Mr Pinder.

“Governments likewise are challenged with the obligations they will have under a regime such as FATCA. Some countries in the region are being forced to evaluate and make decisions, not necessarily in the best interest for its industry, but at times, based on what it can afford.

“This is a dangerous situation that small countries in the region are facing, an issue that as a region we must address collectively. We look forward to hearing from the experts what the expectations of industry and gcovernment are.”