Bahamas Softens on Information Exchange

Prime Minister Hubert Ingraham says the Bahamas is ready to negotiate ‘appropriate arrangements' to accommodate Organisation for Economic Cooperation and Development (OECD) standards.
In so doing, the Bahamas is bowing to global pressure to allow for further information exchange agreements and tax transparency to avoid penalties or isolation.
Ingraham told the Bahamas Parliament it's appropriate, in light of the line being taken by other countries, to ‘reaffirm' its commitment ahead of the April 2 Group of 20 Nations and the OECD in London.
He said the Bahamas would negotiate as a matter of priority.
Last year, Ingraham said the Bahamas government was not interested in negotiating further tax information exchange agreements.
However, with the OECD countries contemplating blacklisting countries that do not dance to their tune, Ingraham is hoping to circumvent a backlash.
According to Michael Paton, a former Bahamas Financial Services Board chairman, the Bahamas has to find a new model for its financial services industry.
He told The Nassau Tribune that Bahamas-based clients and institutions shouldn't panic in the face of the new global regulatory landscape, as there would be a transition period before any new agreements take effect.
Paton urged the government not to rush into signing, and to explore how the Bahamas could maximise reciprocal benefits from bilateral arrangements, The Tribune reported.
This could be achieved through alternative agreements, such as investment and double tax agreements, Paton added.