Campaign for more foreign businesses
The Central Bank of Barbados, along with key stakeholders in the international business and financial services sector, is in the process of developing a strategy for attracting more companies to set up operations in Barbados.
Word of this came from Central Bank Governor Dr DeLisle Worrell, who, while not giving details, told journalists the plan was to embark on an aggressive campaign to get more international business here.
“We are in the process of developing a strategy jointly with all the players in the international business sector; the division of international business in the ministry as well as the Barbados International Business Association and the private sector players to reestablish the basis of our engagement in the international community,” said Worrell.
“That is to say we are interested in real business of substance where people are going to come to Barbados and establish institutions which will employ Barbadians and do real business in Barbados and benefit from our double taxation arrangement.
They will be regulated and supervised appropriately,” he added. Saying that Barbados had superior framework for supervision and regulation, Worrell disclosed that those systems were certified recently, by the International Monetary Fund (IMF) and the World Bank, through the financial sector assessment programme.
“We are not a fly by night business [location]. We are a solid jurisdiction we are emphasizing that and we are looking to develop new markets, particularly in Latin America and neighbouring countries but also in Europe,” said Worrell.
Asked if there were still concerns relating to the Foreign Account Tax Compliance Act (FATCA ), Worrell said it was “a fact of life”, and it was still “a work in progress”. “The entire world is trying to come to terms with it. So we remain engaged and we have an active committee which is working to keep us up to date on timelines for FATCA and we are sharing that information with banks and institutions that will be involved,” said Worrell.
FATCA is a new chapter in the United States Internal Revenue Code introduced in March 2010. It would require foreign Financial Institutions (FFIs) to report directly to the United States Inland Revenue Service (IRS) about financial accounts held by American taxpayers of foreign entities in which they hold a substantial ownership interest, or be penalized for non-compliance.