By AVA TURNQUEST
Tribune Staff Reporter
aturnquest@tribunemedia.net
ATTORNEY General Allison Maynard-Gibson yesterday said she was confident that proposed web shop regulations will be supported by the banking industry.
Legislation will stand up to international scrutiny on anti-money laundering (AML) and counter-terrorism financing (CTF), according to Mrs Maynard-Gibson, who downplayed reports that - once regulated - the underground economy will not be welcomed by mainstream financial institutions.
In the draft bill’s present form, there are no provisions for sports betting or loan financing - two services that are reportedly offered by web shops presently.
Proposed taxation of the sector will be retroactive next month; however, draft legislation has not been completed, she said, adding that she did not want to compromise the drafting team by providing a timeline.
Outside Senate yesterday, Mrs Maynard-Gibson underscored that the government has benchmarked other jurisdictions to come up with strategies for integration - such as a penalty for illegal operations prior to the implementation of the new regulatory framework.
“We will have a well regulated jurisdiction, there is no compromising on that at all,” she said. “The importance of us ensuring that whatever legislative framework that we put in place, and support of that framework, is able to withstand international AML and CTF scrutiny,” she said.
“I’m aware that in Canada gaming is conducted, gaming that is regularised is conducted. Persons who work in those institutions that are regularised in Canada, receive money from those gaming institutions, they put their salaries in the banks in Canada.
“So I have every confidence that while gaming, including web shops, is fully regularised in the Bahamas - that Bahamians who work in those institutions that work in the Bahamas, just like in Canada, will put their money in banks in the Bahamas.”
In February, Commonwealth Bank’s president Ian Jennings told Tribune Business that the country risked being ‘blacklisted’ again by the G-20 nations due to the potential money-laundering risk presented by the web shop gaming industry.
He explained that the web shop “status quo” was untenable and left the Bahamas exposed to heightened regulatory scrutiny - and potential sanctions - by the world’s largest economies and their OECD-type forums.
Last week, RBC Bahamas confirmed that it was not allowed to do business with web shops regardless of their regulatory status given “high risks” and policy restrictions.
During her contribution to the budget debate in the Senate, the Attoney General underscored the country’s risk for blacklisting if the underground economy is not regulated.
She pointed to the economic downturn as a result of the FATF’s decision to blacklist the Bahamas in 2000 as a “non-compliant” country with alleged financial regulatory weaknesses that could facilitate money laundering.
Comments
GrassRoot 10 years, 4 months ago
Unfortunately the Bahamas is not an island in this. It will be determined by others (FATF, CFATF, G20 etc.) what is acceptable and what is not. It is a fact that Customs does not check on money brought into the country and I am sure there are willing Bahamians that help launder money through the webshops for a few cents on the dollar. Through the underground economy established by the webshop owners over the past years, there is already so much illicit money in the system (unregulated mortgages, loans, real estate purchases etc.) combined with all the Pindling-era money from trafficking that is still stuck in the Bahamas, that this issue will haunt the Bahamas for years to come. Short sighted, anti-visionary and greed driven.The government cant even handle the landfill problem, how can they handle big money and the webshops..
John 10 years, 4 months ago
What about the Symnontte era money from rum-running ok that was ok?
ohdrap4 10 years, 4 months ago
what about money from slavery, that was ok?
please deposit my reparation money asap
killemwitdakno 10 years, 1 month ago
the webshops have been there already doing and providing their own loans to folks. this way at least has legitimate parties involved. not sure if legitimate includes Perry n them but the banks seem to already know their client.
ThisIsOurs 10 years, 4 months ago
During her contribution to the budget debate in the Senate, the Attoney General underscored the country’s risk for blacklisting if the underground economy is not regulated.
Wow, now that's spin. The last I heard, the people said loud and clear that they wanted the industry shutdown. That would remove all threats of blacklisting.
John 10 years, 4 months ago
What country is now suing the US for forcing all its internet web shops to close down. suing for $200 million.
observer2 10 years, 4 months ago
Presumably then (1) the banking community will be able to satisfy themselves that the gaming enterprises whom they maybe taking on as clients will be in compliance with local and international money laundering laws and regulations to the satisfaction of local and global financial regulators.
(2) The web-shop bank client take-on process may include audited financial statements and a laundry list of due diligence including beneficial owners identification etc. will need to be completed. For foreign banks, it is more than likely that approvals will need to be made in Toronto.
(3) Other gambling affiliated or closely held businesses (and persons) such as lending and client accounts would also need to be in compliance with banking legislation (bank license?). What about the gambling houses international branches and subsidiaries in other Caribbean jurisdictions? Will these be regulated from the Bahamas?
(4) If accepted as clients, the banks will need to make themselves comfortable with the placement of large cash deposits into their institutions not only to their local satisfaction but also to the satisfaction of their head offices.
(5) Failure on any of these points could cause some reputational issues for the banks.
(6) Finally in order to avoid tax (VAT) leakage it will be important for all gambling proceeds (including cash) be deposited into the local banking system.
The Church has said no to gambling, the people by way of poll have said no to gambling, civil society have raised issues on its impact on the poor, statements from the banking community have raised concerns. However, the current administration tells us that all will be fine once the industry is legalized.
Well_mudda_take_sic 10 years, 4 months ago
The likes of Perry "Vomit" Christie, Wilchcombe, and Maynard-Gibson are now nothing more than agents of the Numbers' Bosses like Flowers whose interests they are eager to represent against the interests and wishes of the Bahamian people. Like the Mafia Bosses, the Numbers' Bosses are known hard core criminals and racketeers who are scampering to portray themselves as god-faring hardworking businessmen so that they can use their enormous accumulated proceeds of crime to take outright control of our country's political system. The democracy we built and maintained for as long as we could will now rapidly become a kleptocracy run by the Numbers' Bosses thanks to Perry "Vomit" Christie, Obie Wilchcombe and Allyson Maynard-Gibson having sold their souls to the devil for election campaign contributions to the PLP among other things! Flowers and the other Numbers' Bosses are no different than the Mafia Bosses of Southern Italy that Pope Francis of the Catholic Church has just recently excommunicated en mass, proclaiming them to be the very embodiment of the evil scourge against mankind that exists in our world today. Yes Mr. Flowers, that's precisely what you are: a predator of the poorer Bahamians in our society whose gambling addictions you have preyed on for so many years, leaving many a destitute Bahamian child to grow up in abject poverty while you were lining your pockets with just about every single dollar you could squeeze out of their families' very limited coffers.
John 10 years, 4 months ago
What about BTC's online Gaming? Isn't that even more on the lines of a predator. Sending you texts all hours of the day asking you to 'come play to win"...They made over a million in 2 weeks and even little children were allowed to play. Fifty cents a text..wonder if BTC has an online gaming licence? Does anybody know?
Purcell 10 years, 4 months ago
I imagine every drug dealer will be buying winning lottery tickets to launder their money. The Bahamas is chock full or corrupt people reigning over a populace of morons. Please convince me otherwise.
John 10 years, 4 months ago
John 1 hour, 11 minutes ago
What about BTC's online Gaming? Isn't that even more on the lines of a predator. Sending you texts all hours of the day asking you to 'come play to win"...They made over a million in 2 weeks and even little children were allowed to play. Fifty cents a text..wonder if BTC has an online gaming licence? Does anybody know?
Reality_Check 10 years, 4 months ago
For those who may be too young to have a full history of our PM's political career, it was none other than Sir Lynden Oscar Pindling who labelled Christie as "Vomit" because of his political treachery to the PLP.
John 10 years, 4 months ago
I think you need to check the facts on this one!
Reality_Check 10 years, 4 months ago
As reported in the May 1, 2002 edition of The Tribune: Both Perry Christie and Hubert Alexander Ingraham were cast out by an angry Sir Lynden. One stood by his principles and refused to go back, the other remained mute until the time came for him to return to the Pindling fold as a Cabinet minister. In answer to a critic’s accusation that by accepting the Cabinet post Mr Christie was like a “dog returning to his vomit”, Mr. Christie said: “For the love, for the emotional support that these people gave me, I will swim in the vomit.” I guess this is why Christie now has no difficulty swimming with the Numbers' Bosses and the likes of Nygard.
ThisIsOurs 10 years, 4 months ago
The majority of our banks are foreign owned and subject to foreign taxes, oversight and fines. The international headlines post the financial crash have been littered with banks fined millions of dollars for skirting compliance standards.The good old boys network does have the influence it believes in USA, Canada or Switzerland.
John 10 years, 4 months ago
So what about the big boys plans to crash the US dollar while Obama is still in office and send the world economy into a tailspin?
TheMadHatter 10 years, 4 months ago
I can't believe the AG answering the question by discussing the employees of the gaming houses depositing their salaries into the banks.
THAT'S NOT THE QUESTION.
Geesh. How did she become a lawyer and not be able to read?
The question is whether the gaming houses themselves (the businesses) will be able to have bank accounts - like, for example, a business chequing account.
Of course, a little pip-squeak employee who shows up at a teller wanting to deposit $400 will be allowed to.
It's the $80,000 cash deposits that the article is querying. Will they be able to be deposited at RBC (for example), or will they continue to be "shipped" abroad.
TheMatHatter
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