Caribbean watch: Bahamas nearly off EU blacklist; new Commonwealth trade facility

Bahamas closer to blacklist removal

On the heels of Tuesday's announcement that the European Union Code of Conduct Group officially recommended the Bahamas be removed from the EU blacklist of illegal tax havens, Bahamian deputy prime minister and finance minister K. Peter Turnquest touted the government's efforts to meet EU guidelines for removal from the list of non-cooperative tax jurisdictions.

At its April 12 meeting, EU member states' delegations agreed to recommend the decision to the EU Economic and Financial Affairs Council (Ecofin), which is responsible for making the decision official. Based on communications from the finance ministry, the government said it expects the Ecofin Council to take up the recommendation without discussion by their next meeting on May 25.

In a statement, Turnquest stressed that the country is legislating to ensure the country continues to meet international expectations for anti-money laundering and countering financing of terrorism, largely through the proposed Multinational Entities Reporting Bill.

"We also support our financial regulators, as they supervise their licensed entities in a fashion calculated to minimize financial crime," said Turnquest at a recent press conference announcing plans for the upcoming 2018 National AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) Conference to be hosted by nation's central bank and other partners.

The government said the conference is to be the first in a new annual series and will become the Bahamian flagship event for improving national capabilities in anti-money laundering and countering financing of terrorism. It will take place on September 17-18.

Turnquest said the strong regulatory regime that characterizes the financial services sector ensures that the integrity of the Bahamas as an international financial center is maintained.

He added that the event would help Bahamian stakeholders improve their capacity to protect against financial crime. "We will demonstrate to relevant international observers that the Bahamas is becoming a [tougher] leader in the global fight against money laundering."

Commonwealth unveils financing mechanism

Leaders of the Commonwealth small states (members of the Commonwealth with fewer than 1.5mn people), which include 12 Caribbean countries, have launched a new trade finance facility it describes as "an innovative way for small states to obtain easier access to international trade finance"

The Commonwealth's secretary-general, Patricia Scotland, said in a statement, "This new scheme is an example of the innovative and collaborative approaches that are pioneered by the Commonwealth; they have a hugely positive impact on the lives and livelihoods of people in our smaller and more vulnerable member countries."

The body launched the mechanism, dubbed the Commonwealth Small States Trade Finance Facility, on Monday, announcing provision of US$5mn to India, Sri Lanka, Mauritius and Malta.

The following Caribbean nations which now have access to the scheme: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, and Trinidad and Tobago.

Five years in the works, the scheme operates as a form of a guarantee facility "that will encourage international banks to offer higher trade finance lines to financial institutions in the small states by reducing their credit risk."

"The concept is based on a highly innovative use of blended finance that seeks to achieve maximum impact with minimal levels of official assistance," read the Commonwealth statement, adding that the facility is hosted and administered by Malta.

Pilot countries selected for the spring launch include Bahamas, Botswana, Brunei, Dominica, Fiji, Mauritius, Namibia and Seychelles.