BFSB CEO & Executive Director Wendy C. Warren says, “BFSB is pleased to celebrate the 10th anniversary of the awards programme, which recognises one of the most important assets of our financial services industry: people power”. Capacity building is of critical significance to the ongoing success of the financial services sector and remains a cornerstone of BFSB’s strategic planning process and ongoing programme of work.

The Industry Excellence Awards programme was launched in 2001 in collaboration with the Professional Industry Association Working Group (PIAWG) as part of the Financial Centre Focus (FCF) outreach designed to profile the industry. (See attachment below) Specifically, this recognition programme profiles role models in the industry for their outstanding performance and contribution to the growth and development of the Bahamian financial services industry. The Presentations Ceremony for the 2010 Financial Services Industry Excellence Awards has been scheduled for Thursday, 21st October. Also to be announced at the Awards Ceremony will be the winner of the annual Financial Services Student of the Year Award, another recognition programme developed under the umbrella of the FCF.

Nominations guidelines and forms can be obtained from BFSB’s offices in the Goodman’s Bay Corporate Centre.

This initiative is a joint venture of BFSB, the College of the Bahamas and the Central Bank of the Bahamas, in collaboration with the Professional Industry Association Working Group (PIAWG) - a representative body for the various financial services industry-related associations here in The Bahamas. The criterion for initial selection is based on academic performance as demonstrated by GPA. Additional criteria include COB and community involvement, special interests, further education, and work/other experience. Last week, the Selection Committee completed interviews with the finalists, who will be announced shortly. The final phase of the judging process includes the interviews and a written submission from each candidate. The 2010 “Student of the Year” will be recognised at BFSB’s Annual Industry Excellence Awards Ceremony on October 21.

The Student Award programme is an integral component of BFSB’s ongoing Financial Centre Focus (FCF) programme that addresses issues such as (a) challenges impacting the sustained growth and development of the industry; (b) improvements to the level of service; and (c) attracting and maintaining qualified professionals.

This year, the Award is jointly sponsored by Societe Generale Private Banking (Bahamas) Ltd. and CFAL. SG Private Banking has been a consistent Co-Sponsor of the student award since 2004, while the Colina Group of Companies also supported the award as a Co-Sponsor in 2004 and 2005 under Colina Investment Advisors, and under CFAL as a cooperating partner in the ensuing years.

Photo caption: Pictured are members of the 2010 FSI Student Award Selection Committee – including representatives of the Award Sponsors. Front Row - Left to right: Anastacia Johnson, Association of International Banks & Trust Companies; Joan Pinder, Former College of the Bahamas School of Business Chair; Nadine Frazier, Insurance Institute of the Bahamas; and Nicole Pratt-Rolle, Society of Trusts and Estate Practitioners. Second Row – left to right: Cathy Williams, Colina; Renee Barrow, SG Private Banking, Carla Sweeting, Bahamas Real Estate Association; Cyprianna Bethel, Central Bank of the Bahamas; and Medgar Bonimy, Bahamas Institute of Chartered Accountants. Not pictured are Committee members D. Nguyen-Comito, Bahamas Financial Services Board; Karen Lockhart, College of the Bahamas; Marcia Seymour-Miles, College of the Bahamas; and Roger Brown, Bahamas Insurance Association.

GMNI was established in The Bahamas in 1999 by Capt. G.K. Lightbourne, a former Royal Bahamas Defence Force Marine. Its Mission Statement: “Empowering Seafarers Through Specific Performance and Improving Quality of Life.”

The Bahamas has a rich maritime heritage, with a Bahamas Ship Registry fleet that has grown to be third in the world, with over 50 million gross tons of ships flying the Bahamas Flag in every corner of the globe. The Bahamas Maritime Authority recently launched a Yacht Registry, complementing The Bahamas’ interests in tourism, ship services and its extensive cruising waters.

The international shipping industry employs some 1.25 million seafarers, and the sector continues to present great potential for development, locally and international. The necessary training to build capacity is a key component of growing the industry.

The Global Forum’s Peer Review Group (PRG) was established in September 2009, as a technical working group consisting of representatives of 30 countries including The Bahamas. "The modern global economy has highlighted the need for unprecedented levels of cooperation amongst national governments of the world, both to sustain development and to combat abuses," the Minister noted, adding, "The Bahamas has taken its responsibility in this regard very seriously, having embarked in the past decade on significant reforms at considerable investment to meet its obligations, including through participation in the Global Forum and other multilateral fora. The Bahamas remains focused on promoting the sustained development of our economy for the benefit of our citizens while fulfilling our obligations as a responsible member of the international community."

The Peer Review Group’s Chairman, Mr. Francois D' Aubert, extended appreciation to The Bahamas for recognizing the need to host such a meeting, as countries monitor the progress of the work of the PRG.

The PRG is operating under a mandate to develop and implement a system for the assessment, monitoring and review of actions taken by member countries toward the implementation of the established standards for transparency and information exchange with regard to tax matters. The initial stage of implementation of the peer reviews started in March 2010, with the assessment of the first group of 18 jurisdictions including Australia, Barbados, Bermuda, Botswana, Canada, Cayman Islands, Denmark, Germany, India, Ireland, Jamaica, Jersey, Mauritius, Monaco, Norway, Panama, Qatar, and Trinidad & Tobago. Some 100 jurisdictions, including The Bahamas will be assessed over the next three years in a two-phase process that examines legal and regulatory framework for transparency and information exchange as well as practical implementation.

The Phase I review for The Bahamas began on July 1, with the Phase II review scheduled for July 2012.

It has been announced that the first 8 peer review reports have been approved by the Global Peer Review Group. “These Phase 1 reports assessed the legal and regulatory frameworks related to transparency and exchange of information for tax purposes in Bermuda, Botswana, the Cayman Islands, India, Jamaica, Monaco, Panama and Qatar.” All reports remain confidential until the Global Forum adopts them. The next Global Forum meeting will be held in Singapore on September 29-30, 2010.

Many other reviews have been launched already, in accordance with the Schedule of Reviews. The next group of reports will be considered at the next PRG meeting which will be held in Paris at the end of November 2010.

The TIGRS 3 Sub Fund is the fourth offering of international investment products to Bahamians by Royal Fidelity Merchant Bank and Trust Limited. The TIGRS 3 shares offer 100% Principal Protection and 100% participation in the upward price performance of an equally weighted basket of commodities composed of Gold, Copper and Nickel. TIGRS 3 is a closed end fund that matures on March 31, 2015. The return at maturity is based on the average of the commodities’ prices measured annually beginning on April 1, 2010 and ending at maturity.

A release from BISX notes that Royal Fidelity is able to offer these international investment products to Bahamians as a result of the Central Bank of The Bahamas’ Exchange Control Liberalization Program (the Liberalization Program) which allows BISX Licensed Broker-Dealers to access US$ currency for the specific purpose of creating Bahamian based investment products for local investors. The Liberalization Program which began with the creation of international funds by Royal Fidelity and CFAL in December 2007, currently counts 6 funds (including TIGRS 3) listed on the Exchange that offer international investment products to Bahamians.

In commenting on the new listing, BISX Chief Executive Officer Keith Davies said, “I want to congratulate Royal Fidelity for moving forward with the creation of their fourth international mutual fund. I believe that developments such as this listing are a sign of the innovation of our BISX Broker-Dealer Members. In these difficult financial times, it is encouraging that it is still possible to create products that investors value as being a part of their portfolio. I applaud Royal Fidelity one of our first BISX Members on their continued efforts at developing a pool of investments that Bahamian investors are able to access.”

President of Royal Fidelity Merchant Bank & Trust Mr. Michael Anderson added: “Royal Fidelity is pleased to have been able to offer the first opportunity for Bahamian investors to invest Bahamian dollars in commodities while also giving full protection of the principal amount invested. Through the TIGRS sub-funds, Royal Fidelity seeks to create unique investment opportunities to enable Bahamian investors to diversify their Bahamian dollar investment portfolios while limiting any downside by offering full principal protection.“

Royal Fidelity Capital Markets Limited served as the BISX Sponsor Member that brought the TIGRS 3 Sub Fund to the Exchange. Royal Fidelity Merchant Bank and Trust Limited is the Investment Manager as well as the Administrator.

Mr. Anderson also has indicated the possibility of Royal Fidelity bringing out another foreign-currency denominated, international mutual fund later this year.

The OECD Model Tax Convention is used by both OECD member countries and non-member countries as the basis for the negotiation, application and interpretation of their bilateral tax treaties. The Model and the worldwide network of over 3000 treaties based upon it provide a means of settling on a uniform basis the most common problems that arise in the field of international double taxation. They thus help to prevent those problems from operating as obstacles to the free movement of goods, services, capital and persons between countries.

The OECD’s Committee on Fiscal Affairs works on an ongoing basis to revise the Model Tax Convention and its Commentaries to address changing economic conditions. The 2010 update to the Model Tax Convention includes a new Article 7 (Business Profits), which completes the Committee’s work on the attribution of profits to permanent establishments. It also introduces new text relating to the granting of the benefits of tax treaties with respect to the income of collective investment vehicles, the application of tax treaties to State-owned entities (including sovereign wealth funds), tax treaty issues relating to common telecommunications transactions, and the application of Article 15 (Income from Employment) to employees who work for a short duration in a foreign country.

The OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations provide guidance on the application of the “arm’s length principle”, which is the international consensus on the valuation for tax purposes of cross-border transactions between associated enterprises. In a global economy where multinational enterprises (MNEs) play an increasingly prominent role, consistent application of the arm’s length principle helps to ensure that the taxable profits reported by MNEs in the countries where they operate reflect the economic activity undertaken there and that taxpayers can avoid the risk of double taxation that may result from a dispute between two countries about the determination of the arm’s length remuneration for their cross border transactions.

The 2010 revision to the Transfer Pricing Guidelines is the first major revision to this document since the Guidelines were first released in 1995. It contains new, more detailed guidance on how to perform comparability analyses in practice in order to compare the conditions of transactions between associated enterprises with those of transactions between independent enterprises. It also includes new guidance on how to select the most appropriate transfer pricing method to the circumstances of the case and on how to apply in practice two of the OECD-approved transfer pricing methods, referred to as “transactional profit methods”, namely the transactional net margin method and the transactional profit split method. This update also includes a new chapter providing detailed guidance on the transfer pricing aspects of business restructurings.

These new guidelines will help both developed and developing countries ensure that MNEs do not use transfer pricing to shift profits into low-tax jurisdictions and, at the same time, that they will not be subject to double taxation. The guidelines should help reduce and resolve disputes between tax authorities. Of relevance in this context are the recommendations issued by the Committee on Fiscal Affairs in February 2007 on mandatory dispute resolution mechanisms. The revised guidelines have benefitted from input from non-OECD economies, and the OECD now has in place an extensive program to help those countries apply the guidelines.

The Report on the Attribution of Profits to Permanent Establishments, approved in its original form by the OECD Council on 17 July 2008, provides guidance on the manner in which the arm’s length principle can be used in determining the profits attributable to a permanent establishment under Article 7 of the OECD Model Tax Convention. In order to fully implement the conclusions of the 2008 Report, the Committee on Fiscal Affairs decided to draft a new version of Article 7, which now appears in the 2010 update to the Model Tax Convention. The Committee also decided to publish simultaneously with that update a modified 2010 version of the Report, which does not change the conclusions of the 2008 Report but simply deletes obsolete cross-references and aligns the Report’s wording with the text of the new Article 7 and the revised Transfer Pricing Guidelines.

Captain Hutchinson was elected a Vice Chairman of the Sub-Committee in 2008, with the appointment to Chairman unanimously confirmed after the July 5-9, 2010 18th Session of the FSI at IMO Headquarters in London. Capt. Hutchinson, in fact, acted as Chair for that Session.

The IMO consists of an Assembly, a Council, five main Committees, and a number of Sub-Committees that support the work of the main technical committees, including the Flag State Implementation Sub Committee. The Sub-Committee was established in 1992 to address the varying standards between flag states in the effective implementation of the international conventions. Its aim is to improve the performance of Governments. Today it has oversight for the status and implementation, by all IMO Member States, of the more than 40 IMO Conventions, hundreds of codes, guidelines and recommendations covering every aspect of design, construction, equipment, maintenance, safety, marine environmental protection and crew issues. The important issues on the Sub-Committee's agenda include the IMO Member State audit scheme, casualty analysis, harmonisation of port state control activities, the development of a mandatory Code for Recognised Organisation and the survey guidelines under the Harmonized System of Survey and Certification (HSSC) covering international shipping regulations adopted by the International Maritime Organization, which entered into force in 2000.

Captain Hutchinson in his capacity as a BMA senior manager in the Technical Department has been involved in the development and oversight of The Bahamas' national maritime policies and regional activities in the Caribbean MOU. He brings a wealth of experience to his new role, which is viewed as marking an important milestone not only for The Bahamas but also for the IMO, which has entrusted the important work of this body to a major flag state.

The Bahamas serves as a Category (c) member of the IMO Council for 2010-2011. It is an active participant in the Council's work. The Bahamas is the flag of choice for many of the world's finest fleets, with the Bahamas Ship Registry’s reputation for quality and excellence ensuring that it remains the trusted first option flag for many of the biggest players in international shipping.

18th FSI Session

The agenda for the FSI 18 included the following important items:

• Review of the Code for the Implementation of Mandatory IMO Instruments
• Comprehensive analysis of difficulties encountered in the implementation of IMO instruments
• Responsibilities of Governments and measures to encourage Flag State compliance
• The harmonisation of the Port State Control MoU’s activities
• The Code for Recognized Organizations
• The PSC Guidelines on Seafarers' Working Hours and PSC Guidelines in Relation to the Maritime Labour Convention, 2006
• Interim Guidance for Port State Control Officers on Checking for Compliance with Long Range Identification and Tracking (LRIT)
• Interim Guidelines for Inspection of Anti-Fouling System (AFS) on Ships Port Reception Facilities Related Issues

The Global Forum established the Peer Review Group (PRG) in September 2009, as a technical working group consisting of representatives of 30 countries, including The Bahamas. It is operating under a mandate to develop and implement a system for the assessment, monitoring and review of actions taken by member countries towards the implementation of the established standards for transparency and information exchange with regard to tax matters.

Some 100 jurisdictions, including The Bahamas, will be assessed over the next three years, in a two-phase Peer Review Process that will examine (i) legal and regulatory frameworks for transparency and information exchange; and (ii) practical implementation. The review process will identify jurisdictions that are not implementing the standards, and these will be provided with guidance on the changes required and a deadline to report back on the improvements they have made.

The Phase 1 review for The Bahamas began on July 1, with Phase 2 being scheduled for July 2012. (Visit Tax Cooperation for details on The Bahamas' stance on transparency and information exchange)

Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration has said the real test of developments in transparency and exchange of information as witnessed with the huge number of tax treaties signed since April 2009 will come with the Peer Review Process, when the Global Forum “can evaluate the quality of these agreements and the extent of the implementation of the standards in practice.”

The Global Forum has been the multilateral framework within which work in the area transparency and exchange of information has been carried out by both OECD and non-OECD economies since 2000.

On the occasion of the PRG Meeting in Nassau, Mr. Pascal Saint-Amans, Head of the Secretariat of the Global Forum will address a BFSB member forum on general issues of tax and transparency, while also providing an overview of the Forum’s work.

The Act provides clarity on the definition of Competent Authority as defined in the respective governing Agreement. In the case of The Bahamas, this would be the Minister of Finance or his duly authorised representative. Likewise defined is the “Requesting” and “Requested” States, specifically linking them to the governing Agreement.

With regard to the procedures to be followed in respect to a request, the Act stipulates that a request must be in writing and must be signed by a senior official designated by the “Requesting” State. The Act provides safeguards against so-called fishing expeditions, with provisions relating to what a request must contain, deferring to the provisions of the respective governing Agreement. For example, it provides that a request shall contain “such” of the following particulars as “may be specified” within its governing Agreement:

1. The identity of the person under examination or investigation;
2. A statement of the information sought, including its nature, and the form in which the requesting state wishes to receive the information from the requested state;
3. The period of time in respect of which the information is requested;
4. Where a request seeks information relating to a timeframe outside the taxable period specified in the request, the request must clearly establish the connection between that taxable period and the timeframe for the information sought;
5. The tax purpose for which the information is sought;
6. The grounds for believing that the information requested is held in the “Requested” state or is in the possession or control of a person that is subject to the jurisdiction of the “Requested” state;
7. To the extent known, the name and address of any person believed to be in possession of the “Requested” information;
8. A Statement that the request is in conformity with the law and administrative practices of the “Requesting” State, that if the “Requested” information was within the jurisdiction of the “Requesting” State then the Competent Authority of the “Requesting” State would be able to obtain the information under the laws of the “Requesting” State or in the normal course of administrative practice and that the request is in conformity with its Governing Agreement;
9. A Statement that the “Requesting” State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties;
10. An indication as to whether the information is required for determining, assessing and collecting taxes or for the investigation or prosecution of tax offences involving the contravention of a tax administration or other relevant law;
11. Where the request is in respect of the determining, assessing and collecting of tax, the law imposing the tax;
12. Where the request involves a contravention of a tax administration or other relevant law, the law contravened or believed to have been contravened;
13. Evidence that the information being sought is foreseeably relevant to the administration or enforcement of the tax laws in respect of determining, assessing and collecting taxes or for the prosecution of tax offences or involves the contravention of tax administration law (as the case may be).

The Act also sets out the empowerment of the Minister responsible to require production of information and the procedures for dealing with information received. Under provisions of the Act, the Minister may allow representatives of a Competent Authority of a “Requesting” Stage to interview individuals and examine records in The Bahamas, under strict conditions, including the provision of written consent to such by the persons to be interviewed or whose records are to be examined to the Competent Authority, and compliance with relevant entry laws of The Bahamas.

The Act defines offences relating to contravention of provisions and sets penalties for such, and under broader powers provided for the making of subsidiary legislation, the Minister can create further offences and prescribe penalties for such. There is due process for judicial review and challenge, where a person feels aggrieved by the performance of the Minister or any other person of any function under the Act.

In terms of Agreements to be signed going forward, the Act provides that the Minister shall by Order amend the Schedule to give effect to such agreements.

Also enacted has been an amendment to The Bahamas and the United States of America Tax Information Exchange Agreement, effectively (i) ensuring consistency with the level of penalties in the International Tax Cooperation Act 2010 that will give effect to the other TIEAs The Bahamas has entered into; and (ii) empowering the Minister to permit, at his discretion, the United States Competent Authority to conduct interviews in The Bahamas with persons that voluntarily consent to participate in such interviews, and on such conditions as the Minister may set.

The basis of the Bahamian Law and Legal system is the English Common Law tradition.

Justices of the Supreme Court, Registrars and Magistrates are appointed by The Governor-General acting on the advice of the Judicial and Legal Service Commission. The Judicial and Legal Service Commission comprises five persons with the Chief Justice as Chairman.

The Chief Justice and the Justices of the Court of Appeal including the President are appointed by the Governor-General on the recommendation of the Prime Minister after consultation with the Leader of the Opposition.

Justices of the Supreme Court can serve until the age of sixty-five (65) years and, where agreed between the judge, the Prime Minister and the Leader of the Opposition, may serve until the age of sixty-seven (67). Justices of Appeal can serve until the age of sixty-eight (68) years and, where agreed between the judge, the Prime Minister and the Leader of the Opposition, may serve until the age of seventy (70) years.

The law of The Bahamas makes provisions for the appointment of twelve (12) Justices to the Bench of the Supreme Court, inclusive of the Chief Justice, and for five (5) Justices of the Court of Appeal, inclusive of the President. The Chief Justice, as head of the Judiciary, is ex officio, a member of the Court of Appeal; however, he/she only sits at the invitation of the President.

THE LEGAL PROCESS

I. CRIMINAL MATTERS

Proceedings are instituted in the name of the Queen in the Supreme Court and in the name of the Commissioner of Police in the Magistrate's Court.

The Magistrate's Courts hear summary matters or indictable matters which may be heard summarily. Stipendiary and Circuit Magistrates have jurisdiction to impose a maximum sentence of five (5) years. They also conduct preliminary inquiries in indictable matters to determine whether a prima facie case has been made against an accused person. If a prima facie case is made out, the accused is committed to the Supreme Court to stand trial.

If the person is tried and convicted in the Magistrate's Court, an appeal lies to the Supreme Court or to the Court of Appeal, depending on the nature of the offence.

An appeal may lie from the Court of Appeal to the Judicial Committee of Her Majesty's Privy Council, which is the highest Court of Appeal in The Bahamas.

II. CIVIL MATTERS

Civil cases are generally heard by a Judge alone.

Appeals from final judgments of the Supreme Court in civil cases lie as of right to the Court of Appeal, and with the leave of the Court of Appeal and Supreme Court in some interlocutory matters or further appeals from Tribunals.

Stipendiary and Circuit Magistrates can also hear and determine Civil cases if the amount claimed does not exceed $5,000.00.

Appeals lie to the Supreme Court.

Courts of Justice

MAGISTRATES COURTS

These courts are presided over by stipendiary and circuit magistrates, who exercise summary jurisdiction in criminal matters and in civil matters involving amounts not exceeding $5,000.00.

Family Island Administrators also sit as magistrates and exercise summary jurisdiction in criminal matters of a less serious nature and in civil matters involving amounts not exceeding $400.00.

Stipendiary and Circuit Magistrates must have been members of the English, Irish, Scottish or Bahamian Bar and have practised for at least five (5) years. Stipendiary and Circuit Magistrates are ex officio Magistrates for The Bahamas.

SUPREME COURT

Justices are appointed by the Governor General acting on the advice of the Judicial and Legal Services Commission. The Supreme Court has unlimited jurisdiction in general, civil and criminal matters.

A Justice of The Supreme Court must be a counsel and attorney and a member of the Bahamas Bar for at least ten years or a member of a Commonwealth Country’s Bar and have practised for at least ten years. The Supreme Court has unlimited original jurisdiction in civil and criminal causes and matters and an appellate jurisdiction conferred on it by the Supreme Court Act, 1996 or any other law, which includes appeals from the Magistrates’s Court.

Judges assigned to the Supreme Court in Freeport, Grand Bahama hear matters from the Northern Region of The Bahamas, which includes Bimini, Abaco and Grand Bahama unless they are transferred to New Providence for good reason.

COURT OF APPEAL

The highest tribunal resident within The Bahamas is the Court of Appeal, which sits on a full time basis throughout the year. The Court of Appeal has jurisdiction in criminal, constitutional and civil matters - which include appeals from the Industrial Relations Tribunal - under the Constitution, the Court of Appeal Act and other statutes.

The Court of Appeal, which is separate and apart from the Supreme Court, is comprised of a President, the Chief Justice by virtue of his office as Head of the Judiciary, three (3) resident Justices of Appeal and one (1) non-resident Justice of Appeal.

The Court of Appeal, like the Supreme Court is not a government department. They function as independent institutions under the Constitution.

The Court has jurisdiction to hear and determine appeals from judgments, orders and sentences made by the Supreme Court. The Court of Appeal also has jurisdiction to hear and determine appeals from matters in a magisterial court in respect of indictable offences triable summarily on the grounds that:

(i) the court had no jurisdiction or exceeded its jurisdiction in the matter;

(ii) the decision was unreasonable, could not be supported by the evidence or was erroneous in point of law;

(iii) the decision of the magistrate or the sentence passed was based on a wrong principle;

(iv) some material illegality occurred affecting the merits of the case; or

(v) the sentence was too severe or lenient.

PRIVY COUNCIL

At the apex of the court hierarchy for The Bahamas is the Judicial Committee of the Privy Council in London, England. The Judicial Committee of the Privy Council serves as the ultimate Court of Appeal in all matters where appeal is permissible. The Judicial Committee consists of the Lord President of the Council, the Lord Chancellor, ex-Lord Presidents, the Lords of Appeal in Ordinary and such other members of the Privy Council as from time to time hold or have held high judicial office and two other privy counsellors who may be appointed by the sovereign.

THE INDUSTRIAL TRIBUNAL

The Industrial Tribunal comprises (3) members appointed by the Governor-General acting on the advice of the Judicial and Legal Service Commission. The Tribunal has the power to hear and determine trade disputes, register industrial agreements, hear and determine matters relating to the registration of such agreements, make orders or awards and award compensation on complaints brought and proved before the Tribunal.

ADMINISTRATION

The Registrar heads the day-to-day administration of the courts and sits to hear interlocutory applications, taxations and assessment of damages. The Registrar is supported by three (3) Deputies, one of whom serves as the Registrar of the Court of Appeal, and an Assistant Registrar along with the judicial support staff.

Legal System

The legal system in The Bahamas is independent of the political process in the country, and provides a well-established environment for international business. Since 1964 English common law has been complemented by an American type of constitutionalism which declares the existence of certain fundamental principles that are to be observed and enforced. These rights are enshrined in The Constitution; Article 15 concisely states these principles:

"Whereas every person in the Bahamas is entitled to the fundamental rights and freedom of the individual, that is to say, has the right, whatever his race, place of origin, political opinions, colour, creed or sex, but subject to respect for the rights and freedoms of others and for the protection of the public interest, to each and all of the following namely:

1. life, liberty, security of the person and the protection of the law;

2. freedom of conscience, of expression and of assembly and association;

3. protection for the privacy of his home and other property and from deprivation of property without compensation;

The subsequent provisions of this chapter shall have effect for the purpose of affording protection to the aforesaid rights and freedoms subject to such limitations of that protection as are contained in those provisions, being limitations designed to ensure that the enjoyment of the said rights and freedoms of any individual does not prejudice the rights and freedoms of others or the public interest."

Legal Profession and Organisation of The Bahamas Bar

There are more than 900 lawyers qualified to practise at The Bahamas Bar. Every lawyer entitled to practise in The Bahamas is properly styled a "counsel and attorney", and is an officer of the Supreme Court. All persons admitted to practise collectively form the Bahamas Bar Association (BBA). The Bar Council, the executive body of the BBA, has responsibility for deciding whether an applicant for admission to practise is qualified.

The statutory qualification for admission to practise is –

(1) a call to the Bar of England, Scotland, Northern Ireland or Eire, or of such other country as may be specified; (2) admission to practise as a solicitor in any of the above countries; or (3) receipt of a Legal Education Certificate from the Council of Legal Education of the West Indies.

Applicants who meet requirements (1), (2) or (3) above, must also serve for 12 months under the tutelage of a lawyer in actual practice in The Bahamas before being admitted to practise. All applicants for admission to practise must be Bahamians, and must not have been disqualified or suspended from practice in the courts of any place outside The Bahamas.

The Bar Council may agree to the special admission of a person who is not a Bahamian for the purpose of conducting particular proceedings so long as the person is qualified as above. Also, a person entitled to practise before a court of unlimited jurisdiction in any country may become a "registered associate" and agent of a counsel and attorney.

Legal Education

The Council of Legal Education of the West Indies is the regional body to which most of the English-speaking territories in The Caribbean subscribe. The Council consists of the Dean of the Faculty of Law, representatives of the Bar, the judiciary and principals of the Law Schools. The Council operates three law schools, one in Jamaica - the Norman Manley Law School, in Trinidad and Tobago - the Hugh Wooding Law School and in The Bahamas – the Eugene Dupuch Law School.

The qualification for admission to any of the law schools is the possession of a University of the West Indies law degree or a law degree of a University or Institution which is recognised by the Council and the successful completion of an examination set by the Council. The Legal Education Certificate is awarded after satisfactory completion of the two year program, or in the case of persons who possess law degrees from other jurisdictions, completion of the six month conversion program.

THE BAHAMAS CONSTITUTION – The Supreme Law of The Bahamas

The Commonwealth of The Bahamas is a parliamentary democracy. Its system of law and government is based on the Westminster model, which envisages three arms of the State - the Executive, Parliament and the Judiciary. The relationship between each is governed by the principle of separation of powers and the functioning of each is clearly articulated in the Country's written Constitution.

Article 38 of the Constitution provides that "there shall be a Parliament of The Bahamas which shall consist of Her Majesty, a Senate and a House of Assembly. Pursuant to Article 52 (1) of the Constitution, "Parliament may make laws for the peace, order and good government of The Bahamas". In this jurisdiction laws passed by Parliament are called Acts or Statutes. Acts come into effect immediately on publication in the official Gazette on a date specified in the Act; or a date specified in a document called an Appointed Day Notice.

The supremacy of the Constitution of The Commonwealth of The Bahamas is declared in Article 2 of the Constitution which provides:

"2. This Constitution is the supreme law of the Commonwealth of The Bahamas and, subject to the provisions of this Constitution, if any other law is inconsistent with this Constitution, this Constitution shall prevail and the other law shall, to the extent of the inconsistency, be void".

The significance of the supremacy of the Constitution and the principles enshrined therein, is that all legislation, government action, and action by the citizenry are subject to review by the Courts to ensure that they are consistent with the Constitution.