BRIDGETOWN, Barbados, Friday September 12, 2014, CMC – Barbados Prime Minister Freundel Stuart Thursday said his administration places high priority on ensuring the sustainability of the international business and financial services sector, (IBFSCs) and is seeking new ways to improve the value offered to those who view the island as the international financial centre of choice.
Addressing the one-day international conference on international financial centres (IFCs) in a borderless digital economy, Prime Minister Stuart said that over the years, progressive legislative changes had been made to provide investors with the tools needed to do business.
“This has meant, in many cases, upgrading existing products and introducing new ones. In recent times, the moves to allow for Private Trust Companies and Foundations bear witness to our recognition of the need for evolution and adaptation,” he told delegates.
He said the term “International Financial Centre” now appears to focus mainly on the small developing countries providing business and financial services, and some have been labelled as “offshore financial centres”, tax havens, or “sunny places for shady people.
“In every area of economic endeavour where developing countries have managed, through a spirit of independence, and by dint of hard work and investment in the development of their human and other resources, to perform as well as or better than developed countries, the playing field ceases to be level, and new and creative obstacles are placed in their way.
“There are, therefore, increasingly robust debates, discussions and empirical studies on the contribution of IFCs to the global financial system, focused in particular on the contribution provided by developing countries.
“IFCs offer competitive tax rates and other concessions which attract business, and this raises concerns about tax evasion, and more recently about money laundering. In spite of adverse public comment fuelled by vocal critics, however, an increasing body of research contradicts this negative narrative,” Stuart said.
Prime Minister Stuart noted that a number of world-renowned academics had rejected the notion that IFCs were locations of choice for secret accounts and other vehicles for international tax evasion.
He said that some findings point to this being the reality in larger, more developed countries, rather than in small developing countries.
Prime Minister Stuart said Barbados’ strong regulatory framework gave assurance of its commitment to operate according to global standards.
He said the sector is of great benefit to the international partners, as well as the Barbados economy. He said it not only generates taxes and salaries for employees, but also revenue in the areas of real estate, tourism, health and education services.
The conference, targeting officials in the local, regional and international financial services sector is sponsored by Invest Barbados and The Central Bank of Barbados.
The organisers said it will demonstrate the Barbados value proposition with an examination of the Canada Barbados relationship, and will take an objective look at the role of nation states in protecting the efficacy of IFCs.
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Stuart defends Barbados as a reputable, sustainable international financial centre
