It is anticipated that the one-of-a-kind Academy initially will take on 50-55 students in a work study programme, growing eventually to 110 students at any one time. After the first year the students will actually go to sea – an immediate entry into the workforce.

There will be three buildings, and state-of-the-art simulators, including a maritime fire training simulator. “All of the classrooms are going to be high tech and we’re looking at an e-library as well,” said Dr. Cleare.

With 1,600 ships on its books and gross registered tonnage exceeding 57 million, The Bahamas currently ranks as the world’s fifth largest shipping registry. The Bahamas Maritime Authority (BMA) recently completed a business development mission to Brazil, and is looking now at Japan and Korea – with the end objective of expanding the registry. Chairman Anthony Kikivarakis asserts that the BMA’s aim is to get newer ships, bigger ships, oil rigs and tankers as well – but all “quality” rather than simply going for the numbers.

Campbell Shipping launched the LJM Maritime Academy last year as a non-profit initiative, with the funding coming from its group of companies. At that time, Managing Director Chandler B.T. Sands said the underlying idea of the institute is to promote "national development" in The Bahamas. The goal is to attract young Bahamians between the ages of 18 and 35, and students initially will come from the Bahamas Maritime Cadet Corps, although the Academy also will be open to public entrants.

Both visits allowed senior Exchange officials the opportunity to interact with young Bahamians in a small discussion setting, that also allowed students the opportunity to ask questions directly to Exchange officials.

BISX Chief Executive, Keith Davies commented on the school outreach:

"Young people are our future investors, and they bring such a unique perspective to discussions. So we not only talk about investing and stocks, but we also branch out to talk about education, especially their next step in their life, into college or another path. More than a few years have passed since I was a high school student, and it is easy to forget the concerns of young people at that stage in their educational, professional and financial life. Giving them advice on saving, investing and education is great from a social point of view. However, it is also smart business, because this generation is the first generation that will grow up having always been familiar with a stock exchange. BISX is only 13 years old, and these young people will mature along with our nation's stock exchange."

Over the past 5 years, BISX has had the opportunity to speak to a number of schools in Nassau about the Exchange. In the next academic year, they plan to expand this outreach to schools in Grand Bahama, and eventually throughout The Bahamas.

BFSB Chairman Paul Winder noted that Conclave participants recognised the need to refine the current business model for financial services – domestically and internationally – and to clearly define the value proposition of the jurisdiction. He said, “This is in line with “The Way Forward” discussions at this year’s International Business & Finance Summit, and BFSB’s ongoing strategy for sustained growth. BFSB will review the various recommendations arising from the day-long CEO Conclave and will take appropriate action in the usual spirit of public/private sector collaboration.”

Industry issues discussed in the closed-door sessions revolved around two topic areas, “A Changing Paradigm: Positioning The Bahamas to Benefit” and “Opportunities for Growth”, with dialogue focusing on international initiatives impacting the sector and factors relative to creating a business environment conducive to industry growth.

BFSB CEO Aliya Allen said of Saturday’s productive sessions, “The tone of the conclave was largely optimistic. Concerns were raised about a variety of issues impacting the sector, including international initiatives, regulatory policy and immigration; with a number of solutions discussed. BFSB is committed to working along with Government and regulators to address these and to chart the way forward. The strength of public private sector cooperation is what sets The Bahamas apart from others. Now is the time to work together to ensure that there is a sustainable future. I’m confident that there is.”

Ms. Allen noted that it is intended to host such events on a quarterly basis going forward with future Conclaves inviting Government and Regulatory participation.

BACO presents this award each year to a person who has made invaluable contributions to the development of the Bahamian community.

Ms. McCartney has been involved in community service for many years, including on the Council of the College of the Bahamas; the Zonta Club of Nassau; and the Board of the Public Hospitals Authority. She also is a Past President of BACO, and hosts Cable 12’s Roundtable, a show on current issues facing the country.

BACO has more than 100 compliance officers as members. Through its partnership with the International Compliance Association (ICA), it has produced 229 certified compliance professionals throughout The Bahamas.

With the theme “Give Yourself an Edge”, this year's annual conference and exhibition of the Risk & Insurance Management Society Inc. offered a variety of new additions and twists on previous conference offerings, as RIMS looked to help its members become better risk managers. The event has become renowned, too, for the widespread insurance domicile presence, complete with exhibits and special events.

BFSB and the ICB once again manned a Bahamas booth in the Exhibit Hall of RIMS, providing an ideal mechanism to meet one-on-one with RIMS visitors wanting to learn more about The Bahamas Advantage, the theme prevalent in booth design and materials. BFSB CEO Aliya Allen noted that well over 200 persons took advantage of this opportunity. She said, “There was specific interest in The Bahamas’ risk-based regulatory approach, with booth visitors also seeking general information on corporate and other services offered in our jurisdiction.”

This year's conference, from April 21 to 24 at the Los Angeles Convention Center, included more than 100 educational sessions spanning 11 categories and offered a variety of networking opportunities, including the hundreds of providers of risk management products and services in the conference's exhibit hall. Session categories included claims management, employment risks, enterprise risk management, finance, industry, insurance, international, legal legislation, loss control, risk management and strategic risk management.

In opening the conference and exhibition, the RIMS leaders said risk management continues to evolve as a discipline, bringing added value to organizations and new opportunities to its practitioners. Mary Roth, RIMS Executive Director, said “As membership continues to grow globally, we are better positioned to address risks that transcend national boundaries.” More than 10,000 delegates participated in RIMS 2013.

The Bahamas delegation consisted of Aliya Allen and Janelle Sands from BFSB and Superintendent Michele Fields of the ICB, accompanied by Patrice McDonald and Kimberly Kemp-Rolle, also of the ICB.

Photo Caption: Part of the Bahamas Delegation at the Jurisdictional Booth. Left to right: Aliya Allen (BFSB), Michele Fields (ICB), and Janelle Sands (BFSB)

As part of its concerted drive against tax evasion and avoidance, the Commission today set up the new Platform for Tax Good Governance. The Platform will monitor Member States' progress in tackling aggressive tax planning and clamping down on tax havens, in line with the Recommendations presented by the Commission last year.

The aim is to ensure that real and effective action is taken by Member States to address these problems, within a coordinated EU framework. The Platform will be comprised of a wide cross-section of interested parties - national tax authorities, European Parliament, businesses, academics, NGOs and other stakeholders. This will also facilitate dialogue and exchange of expertise, which can feed into a more coordinated and effective EU approach against tax evasion and avoidance.

Algirdas Šemeta, Commissioner for Taxation, Customs, Statistics, Audit and Anti-Fraud, said: "In battling tax evasion, we are battling to protect the fairness of our tax systems, the competitiveness of our economies and the solidarity of our Member States. There is too much at stake for this battle to be lost. The renewed vigour amongst Member States to take up this fight is more than welcome. It must now be channelled into action. The Platform I am launching today will keep Member States on their toes. It will ensure results mirror expectations when it comes to fighting tax evasion."

The Platform for Tax Good Governance was one of the initiatives set out in the Commission's Action Plan against tax evasion in December 2012 (see MEMO/12/949). It will be made up of around 45 members: a high level delegate from each Member State's tax authority and up to 15 non-governmental representatives. The latter will be appointed by the Commission, on the basis of an open application process. The call for applications has also been launched today, with a view to selecting the organisations to participate. Organisations will be selected for a 3 year mandate, which can be renewed through a further successful application after that period.

Background

The Platform will follow in particular the progress being made on two Recommendations linked to this Action Plan.

The first Recommendation foresees a strong EU stance against tax havens, going beyond the current international measures. Using common criteria, Member States are encouraged to identify tax havens and place them on national blacklists.

The second Recommendation is on Aggressive Tax Planning. It sets out ways to block off opportunities exploited by companies to avoid paying their fair share of tax. These include reinforcing the anti-abuse provisions in bilateral tax treaties, national legislation and EU corporate legislation. Any artificial arrangement carried out for tax avoidance purposes would be ignored and companies would be taxed instead on the basis of actual economic substance.

Next steps

The first meeting of the Platform is provisionally planned for 10 June 2013.

BMA’s delegation was led by Board Chairman Anthony Kikivarakis, and included Peter John Goulandris, Deputy Chairman; Commodore Davy Rolle, Managing Director' and Deputy Directors, Captain Dwain Hutchinson, Seafarers & Manning, Stephen Keenan, Inspections & Surveys, and Christine Scavella, Registrar NY.

The BMA held talks with the Maritime Authority of Brazil and with Vice Admiral Raul Bittencourt, Deputy Executive Secretary, Brazilian Navy Directorate of Ports and Coasts, and also visited the Brasa Shipyard in Niteroi, where they saw fabrication of topside modules for a Floating, Production, Storage and Offloading (FPSO) unit. Also scheduled were meetings with:

• Petrobras - the Brazilian integrated oil and gas company which is the world’s 7th largest and with operations in 25 countries.

• Companhia Vale do Rio Doce - a Brazilian multi-national diversified metals and mining corporation, one of the largest logistics operators in Brazil, the second largest mining company in the world and an operator of large bulk carriers.

• V. Ships Brazil - a leading supplier of independent ship management and related marine services to the global shipping industry.

• MODEC Services de Petoleo do Brazil - a general contractor specializing in engineering, procurement, construction and installation of floating production systems.

• SBM (Single Buoy Mooring) Offshore - Rio Office - a leader in floating production and mooring systems, in production operations and in terminals and services.

• Stena Bulk - a world leading tanker shipping company.

• Odebrecht Oil and Gas Services - OOG provides integrated, customized solutions for the upstream oil industry in Brazil and around the world.

• Teekay - the world's leading midstream marine services company and a vital link in the global energy supply chain.

• Seadrill - a leading offshore deep water drilling company.

The face-to-face exercises with clients and potential clients as well as the on-hand technical expertise were well received by the delegation’s Brazilian hosts.

The BMA’s objective is not only to increase its tonnage but as part of the global shipping industry, to promote safety, security and the protection of the environment. The Authority currently is ranked 5th among Flag States with more than 1600 ships on the Register and a gross tonnage of 57 million.

The BMA is planning to revisit Brazil later this year in order to maintain this positive momentum and relationships developed during its April initiative.

• Progress reported by the Global Forum on Transparency and Exchange of Information for Tax Purposes including the upcoming ratings of jurisdictions’ compliance with the Global Forum’s standards on exchange of information on request;
• Efforts by OECD to strengthen automatic exchange of information;
• Latest developments to address tax base erosion and profit shifting, a practice that can give multinational corporations an unfair tax advantage over domestic companies and citizens.

Global Forum on Transparency and Exchange of Information for Tax Purposes: How do countries rate

The Global Forum, set up in 2000 to agree global tax standards, now has 119 member countries and jurisdictions. Since 2009, when the G20 called for effective implementation of the internationally agreed standard of information exchange, the Forum has published 100 peer review reports. Most countries have completed the first phase of the reviews which looks at legal frameworks. Fourteen are not moving to the second phase due to deficiencies in their legal frameworks. After it completes a set of Phase 2 reviews, looking at effectiveness of the information exchange practices, the Global Forum will start rating countries’ implementation of the standards on the basis of a four-tier classification system: ”compliant,” “largely compliant,” “partially compliant” and “non-compliant”. The results of the ratings exercise for the first set of reviews will be completed by year end, with the allocation of overall ratings to approximately 50 tax jurisdictions.

Commending the Global Forum’s achievements, Mr. Gurría noted that, “Now that the tools exist to investigate cross-border tax evasion, all countries must use them to the full.”

Automatic Exchange of Information: the next step

Commenting on new OECD work to develop a common model for automatic exchange of bank information, Secretary-General Gurria said: “The political support for automatic exchange of information on investment income has never been greater. Luxembourg has changed its position and the US FATCA legislation is triggering rapid acceptance of automatic exchange and propelling European countries to adopt this approach amongst themselves. In response to the G20 mandate to make automatic exchange or information the new standard, the OECD is developing a standardised, secure and effective system of automatic exchange.”

The report identifies the Multilateral Convention on Mutual Administrative Assistance in Tax Matters as the ideal legal instrument for multilateralising automatic exchange of information. The Convention provides governments with a variety of means to fight offshore tax evasion and ensure compliance with national tax laws, while respecting the rights of taxpayers. Over 50 countries have either signed or committed to sign; more are expected to sign the Convention at a ceremony to be held at OECD headquarters on 29 May.

Addressing Base Erosion and Profit Shifting

As Base Erosion and Profit Shifting undermine tax revenues and the fairness of the tax system, the OECD has strengthened its work to put an end to international double non-taxation. The report also provides an update on the OECD’s work on Base Erosion and Profit Shifting noting that an Action Plan will be delivered to the Moscow meeting of G20 Finance Ministers meeting in July 2013.

“The level of participation in the briefing and the positive feedback we received speaks to the headway we are making in the Brazilian market,” said Aliya Allen, BFSB’s CEO and Executive Director. “Our consistent presence at this event and in Brazil generally and the independent efforts by member firms, combined with our recent IOSCO A signatory status, have created real momentum for The Bahamas in this market.”

Wolfgang Reichenberger from Inventages Whealth Management opened the briefing by welcoming guests in both English and Portuguese and describing why his company chose The Bahamas and continues to favor it as a location for its funds business, company management and individual investors.

Mr. Reichenberger also introduced The Hon. Ryan Pinder, M.P., Minister of Financial Services, who told attendees that he appreciated their interest in better understanding the opportunities of doing business in and with The Bahamas, encouraging all those in attendance to engage with Team Bahamas “to better understand the synergies and advantages, especially in the context of private banking, wealth planning, and capital structuring.” He spoke to the comprehensive product and service provider offerings of this preeminent full service financial and business centre – a sovereign nation that boasts a stable democracy, and where political risk is mitigated. The Bahamas, he pointed out, values initiatives related to the development and advancement of physical presence financial services operations, including the attraction of asset managers, investment advisors, and other professional advisory services, and the location of family offices. Indeed, The Bahamas is “open for business” in the evolving financial services sector. He concluded, “We have an absolute policy commitment by the Government of The Bahamas to advance the industry; and, we have the comprehensive international financial and business offerings for clients looking for sophistication, personal attention, and cooperation between the private sector, regulators and government policymakers.”

Linda Beidler-D’Aguilar, Graham Thompson & Co., explained why the IOSCO "A" signatory status now enjoyed by this jurisdiction facilitates the use of a Bahamas fund by Brazilian investors to access investments abroad - which more and more High Net Worth Brazilians are doing to diversify their portfolios. “Since The Bahamas is now a recognized jurisdiction, Brazilians can now utilize the services of a Bahamas-based custodian,” she said. Ms. Beidler-D’Aguilar also addressed funds regulation in The Bahamas, generally, with particular focus on SMART Funds and Professional Funds.

Tiffany Norris-Pilcher, Ernst & Young Bahamas, was the fourth panel member and briefed participants on the audit requirements for Bahamas-based funds.

BIS is Brazil’s largest and premier investment conference, attracting leading international and Brazilian funds and investors to discuss developments and trends in market regulation, fund strategy, trading and asset allocation.

BFSB is a Gold Sponsor of the BIS 2013, as it has been since the inaugural Investment Summit in 2008.

Photo Caption: Linda Beidler-D'Aguilar, Minister Ryan Pinder, and BFSB CEO Aliya Allen. Other team members included Wolfgang Reichenberger, Tiffany Norris-Pilcher, Shonalee Munroe (Genesis Fund Services), and Janelle Sands (BFSB)

The reports assess the jurisdictions’ effective commitment to the international standard and real progress in tax information exchange.

The Global Forum has also adopted two supplementary reports, for Costa Rica and United Kingdom. The report on Costa Rica notes that it can now move to Phase 2, proving that it does effectively exchange information.

The Global Forum has reviewed 96 jurisdictions. The Phase 1 reviews of almost all its members - evaluating whether they have the laws necessary to exchange information - have been completed. The Phase 2 reviews have been completed for 30 jurisdictions, four of which were stand-alone Phase 2 reviews. More than 50 Phase 2 reviews are expected to be completed by the end of 2013. They will rate each jurisdiction on the individual elements of the international standard of information exchange, awarding an overall rating - “compliant,” “largely compliant,” “partially compliant” and “non-compliant”.

“The first-stand alone Phase 2 reviews – reviewing both tax laws and their practical implementation – are an important step in the peer review process. The Global Forum has already done tremendous work in reviewing the legal framework of almost all its members. Now, the challenge is to see whether jurisdictions are able and willing to exchange information. When we issue the first set of ratings later this year we will know whether jurisdictions are complying with the international standard”, said the Chair of the Global Forum, Kosie Louw of South Africa.

THE PEER REVIEW REPORTS AT A GLANCE