BIBA supports moves to strengthen Barbados’ international standing
Friday February 04 2011 | 12:53 PM

President of the Barbados International Business Association (BIBA) Mr. Mohammed Patel has issued the following statement on the occasions of the recent passage of the anti-money laundering bill and government’s proposal to amend the Income Tax Act:-

“BIBA supports the strengthening of Barbados’s regulatory environment by the addition of right-sized, appropriate regulation that meet international standards and expectations for a mature, well-regulated international financial services centre like Barbados.

“The recent passage of the Money Laundering and Terrorism Financing Bill through the House of Assembly signals that Barbados takes its international commitments to cooperating in the anti-money laundering and anti-terrorism fight seriously.

“This legislation not only affects those providing services to the international business arena, but also among others real estate agents, dealers in precious stones or metals, attorneys-at-law and accountants. The broadening of the legislation to cover these sectors can only enhance Barbados’ regulatory environment. However, we would want to suggest to government going forward that as wide a consultation as possible is held on these types of legislation given their scope.

“From a practical perspective, there are aspects of the legislation that need to be clarified through the associated regulations. At this stage the legislation seems to offer major operational challenges for both domestic and international businesses. As it stands, certain aspects of the legislation could have significant adverse ramification for non-financial institutions treated as financial institutions for the purpose of the legislation, as well as for certain captive insurers and reinsurers.

“BIBA has already made submission to the relevant authorities on these issues and we look forward to engaging them on these outstanding matters with a sense of urgency.

“On another note, BIBA would also like to support the recent statement of intent by the government to modify Barbados’ domestic income tax legislation to accommodate the requirements set out in the recently released OECD Global Forum Peer Review. This decisive response removes the unnecessary burden of having to renegotiate existing treaties with our tax partners and provides a certain and transparent basis on which the exchange of tax information can be facilitated as new protocols and agreements enter into force.”