The right image and a tax neutral environment

WENDY WARREN Executive Director of Bahamas Financial Services

THE FINANCIAL SERVICES industry has grown not just in size but also in quality of business over the last ten years, according to Wendy Warren, CEO and Executive Director of Bahamas Financial Services Board (BFSB), “The critical transformation came from what might be perceived as a change in the image of The Bahamas,” she says. “In our business, image is very important, and the FNM government, along with the financial services industry, made visits to major cities around the world–Asia, Europe, Latin America and North America–in 1995/96. I believe those were critical transformation dates in our industry.”

She counts The Bahamas’ mature political environment high among the competitive advantages it has to offer. “You have got to reassure your investors that the country itself is being run properly, and certainly over the last ten years we have seen a continuation of that. There has been very strong emphasis on maintaining a strong economic environment.”
She also believes the recent moves to set new standards in the industry are of crucial importance. “It has been very important–particularly post September 11–to provide assurance that The Bahamas is indeed a responsible
member of the international community.

“Our laws are at least as strong as many OECD [Organization for Economic Cooperation and Development] developed nations, including the United States. The Bahamas has certainly taken a lead in ensuring that we can be accountable for the persons who do business here, and we are very pleased to be at the forefront of this sort of initiative.”

Launched in 1998, the private sector-led BFSB links government and the financial services industry in creating greater awareness of the advantages The Bahamas has to offer as an international financial center.
It represents and promotes all sectors of the industry, including banking, private banking and trust services, mutual funds, capital markets, investment advisory services, accounting and legal services, insurance and corporate and shipping registry.

It also works with the government to develop new initiatives to meet the rapidly changing demands of international financial markets.
“Our competitors are clearly the big jurisdictions and The Bahamas’ principal advantage will continue to be the
tax haven we provide,” says Mrs. Warren. “While some of these major centers provide facilities that you can take advantage of–sometimes lower bases of tax or, in some cases, no tax–The Bahamas’ entire platform is based on a tax neutral environment.”