The Tribune

By NATARIO McKENZIE

Tribune Business 
Reporter

nmckenzie@tribunemedia.net

THE MINISTER of Financial Servcies said yesterday that “serious players” in the captive insurance industry were looking to set up a physical presence in the Bahamas,and this nation could soon look to establish a “dominant position” in the segment.

Speaking at a Bahamas Association of Compliance Officers (BACO) conference, Ryan Pinder said this nation had received “very encouraging” interest in recent months from international captive players.

When pressed for further details, Mr Pinder said he was not at liberty to disclose any specifics until the companies applying to be licensed received their permits.

Speaking on the issue of tax compliance, Mr Pinder said: “Given the obvious evolution over the last decade in the financial services industry globally, and those initiatives that are on the horizon, we have to, and I am certain that we are, distancing ourselves from the perception as a jurisdiction of tax cheats and a place to hide wealth.”

He added: “In this vein we remain committed to the philosophy of confidentiality, and look to work hand in hand with the regulators to ensure that we are a jurisdiction sensitive to the operation of the private sector, and an inviting jurisdiction to the international financial services participants. We maintain that we are a jurisdiction of substance and credibility, always operating consistently with international best practices.”

The Minister said further: “With the evolving needs for compliance because of proposed international mandates, the ability to specialise and become an entrepreneur in the industry that we have successfully developed significant domestic human capital in is a tremendous opportunity.

“The defining of the framework for professional compliance outsourcing by the Securities Commission of the Bahamas is a significant step in the right direction for the jurisdiction. We will now take the next step in the development of the financial services industry, what we frequently speak about; we will cause for Bahamian compliance officers to own their segment of the financial services industry through the finalisation of the Guidelines on Outsourcing Compliance Functions.

“Through the development and application of the international initiatives, the expertise of our domestic human capital in the compliance function will be given the opportunity to be entrepreneurs. BACO, you have your next challenge: To prepare your membership for this phase of professional development. Take advantage of growth to come in the financial services industry of the Bahamas.”

Mr Pinder said The Bahamas has “never been more well placed” to not only sustain itself in financial services, but to grow and once again be a dominant jurisdiction.

“We as a country, and as an industry, must be nimble,” he added. “We must recognise the changing landscape and position ourselves for success. A changing landscape is nothing new; we have been witnessing this in one form or another since the late 1990s.

“It is how we react, how we respond that will dictate our success, dictate if we lead or follow in the international financial services industry. The industry is not going away; it will shift and evolve. Priorities might change, key markets will change. We must change with it.”