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Financial services needs to move away form the current model.

The Bahamas will need to further consider restructuring its Financial Services model due the intensified pressure by the G-20 countries for jurisdictions to further increase tax information exchange. Former Minister of State for Finance, Mr. James Smith states the global economic decline and credit situation has caused developed countries to place a greater focus in re-examining their respective tax regimes.

Further, Mr. Smith suggests that the Bahamas become proactive with the Tax Information Exchange Agreement (TIEA) with the US, as the model to partner with other countries.  Mr. Smith states that the recovery of unpaid taxes from clients of the Bahamian Financial Services Industry would be very minuscule given that the private wealth management segment of the industry is by and large compliant with their respective home country tax laws.

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