By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Government yesterday said foreign investors were unlikely to be deterred from coming to the Bahamas by new international rules requiring them to supply their fingerprints as part of the due diligence process.
Khaalis Rolle, minister of state for investments, confirmed to Tribune Business that the Royal Bahamas Police Force’s (RBPF) Security and Intelligence (SIB) branch, which checks out the backgrounds of major foreign investors, would soon require them to supply fingerprints as per Interpol requirements.
“That’s not a Bahamas Investment Authority (BIA) requirement; that’s an SIB requirement,” Mr Rolle replied, when questioned about the ‘fingerprint’ situation by Tribune Business.
“I think Interpol may have directed SIB because of the global threat of terrorism,” the Minister added, noting that the international police organisation was requiring countries to obtain both fingerprints and a ‘valid police certificate’ from the investor’s country of birth.
Mr Rolle alsseriousluo confirmed that the ‘fingerprint’ requirement was unlikely to be confined to just investors behind major multi-million dollar projects, meaning the same would be demanded of foreigners making second home and real estate purchases.
“I am suspecting that,” the Minister said, although when asked whether this might deter foreign direct investment (FDI) into the Bahamas, he replied: “Not at all.”
Still, many observers are likely to question whether the ‘fingerprint’ requirement means the Bahamas is in danger of becoming a ‘police state’.
They may also view it as another onerous, bureaucratic obstacle that will cost investors more time and money in an approvals process widely considered inefficient, and marred by red tape.
Tribune Business was alerted to the ‘fingerprint’ issue by Chad Roberts, the Callenders & Co attorney and partner, who said these had been demanded of a client with a project proposal before the National Economic Council (NEC).
“During a recent transaction with the BIA/NEC, we have been asked to provide actual fingerprints for the persons behind the project,” Mr Roberts said in an e-mail.
“ I guess police certificates/affidavits are no longer sufficient. My issue is: Didn’t we just drop a few notches with the World Bank for ease of doing business? Isn’t this yet another layer of unnecessary bureaucracy?
“I also understand that this new requirement may be implemented for non-Bahamian land purchasers who need a permit from the Foreign Investments Board.”
Mr Rolle, meanwhile, disputed as “not true” assertions by Mr Roberts and others that it was once again taking several months to obtain permits/approvals from the Investments Board, and that the Board was not meeting regularly.
Describing the situation as “the worst I’ve ever seen in my 15 years of practice”, Mr Roberts told Tribune Business: “There is major frustration among people who have applications in or are actually waiting.
“The impact is investors are getting really frustrated. I also had two applications waiting up there at the NEC, one from last May. So they’ve both pulled out and gone to other jurisdictions.”
He added: “The NEC is even worse. It seems like they don’t respond. You send the application up there, and it sits there, sits there and just sits there. Or they say they met and deferred it for further consideration.”
As for the Investments Board, which deals primarily with foreign purchases of Bahamian real estate, Mr Roberts said: “I’ve had a good number [of applications] up there for two months, and it may end up being three-four months.
“Certificates of Registration and permits for land purchases by non-Bahamians, are averaging in excess of two months or more. I’ve had some up there waiting, and the information I keep getting is that they’re waiting for the Board to meet, so call back.
“It’s frustrating us and the clients, because we don’t what to tell them. We tell them three weeks, and two months goes by.”
These concerns were denied by Mr Rolle, who said one applicant had informed him their approval came through from the Investments Board within two weeks.
The Minister added that he was “very confident” that most applications were being turned around within the 30-day timeline, noting that those which were incomplete or raised concerns took longer.
Mr Rolle also described claims that the various Boards were not meeting as “untrue”. Although the Investments Board was not sitting down and meeting weekly, he said the necessary documents were being sent to its members for sign-off.
“We do a round robin,” he explained. “It’s more efficient. If there are particular issues these are addressed, and if there are no issues, the Secretary signs off on them.”
However, Mr Roberts’ concerns were backed by Mike Lightbourn, president of Coldwell Banker Lightbourn Realty.
Mr Lightbourn said the company was still experiencing “the same problems” when it came to obtaining Investments Board permits for real estate purchases.
He added: “We lost the sale of a small hotel in Bimini that went on for seven to eight months with no response.
“Finally, the buyer gave notice and said they wanted to consider other options. We checked with the appropriate government people, they said it would be all straight in time and, of course, it wasn’t and we lost the sale.”
Comments
Guy 11 years, 1 month ago
Amazing that rather than admit to its shortcomings, the Minister is defending the snail pace at which responses are received, and calling the Bahamian professionals liars. These guys are such a joke....
digimagination 11 years, 1 month ago
And government pretends it wants to implement an EFFICIENTLY run VAT system??? Yea, keep dreamin'!
banker 11 years, 1 month ago
I know that the US requires fingerprints for all securities dealers and those handling other peoples money, but investors? Come on. If the funds come from a recognised bank, then the KYC rules on the money have been done. This will add to the decline of the Bahamas.
croberts6969 11 years, 1 month ago
I'd put my money on it that the person who hit an approval in two weeks was from a PLP firm and friends with the Minister; nepotism 1.0.
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