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TUESDAY, DECEMBER 12, 2017

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Bahamas ‘on probation’: 17-step action plan cure By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

he Government has detailed a 17-step ‘action plan’ to strengthen the Bahamas’ anti-money laundering regime, with a top regulator describing this nation as “on probation” over increasing weaknesses. The Bahamas’ National Risk Assessment (NRA) of its money laundering and terrorism financing defences, released yesterday, reveals that sectors such as web shop gaming, pawnbrokers,

* Web shops, pawn brokers ‘high risk’ * Financial crime defences weaken over past 10 years * Real estate and pawn broker ‘beef up’ targeted dealers in metals and precious stones, and payday lenders face a ‘high’ risk of being abused by criminals. The NRA rated the “overall vulnerability” of designated non-financial businesses and professions (DNFBPs), which include those four sectors, as 0.75 out of 1 - meaning they are “exposed to a high level” of money laundering and terrorism financing risks.

The Assessment’s release, which was approved by the Minnis Cabinet on December 5, comes after the Central Bank’s inspector of banks and trust companies described the Bahamas as being “on probation” following the latest Caribbean Financial Action Task Force (CFATF) that was published in July 2017. Charles Littrell, in a little-noticed presentation

to the Nassau Conference, revealed that the strength of the Bahamas’ anti-money laundering and counter-terror financing defences had actually deteriorated over the decade to 2017. He disclosed that the Bahamas was in 2007 deemed ‘compliant’ with 12 of the 40 anti-money laundering recommendations

SEE PAGE 4

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Bahamians urged: Show ‘more ‘outrage’ over financial crimes By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS were yesterday urged to show “more outrage” over financial crime and poor business practices, a prominent cleric arguing that these had become “entrenched in our culture”. Bishop Simeon Hall, speaking as he and other CLICO (Bahamas) policyholders received their third 2017 payout, told Tribune Business that “passivity is not always a virtue” in responding to way companies treat their customers. Calling for tougher action against

* BISHOP: IT’S ‘ENTRENCHED IN OUR CULTURE’ * AND WARNS ‘PASSIVITY NOT ALWAYS VIRTUE’ * ‘SANTA SUIT’ FOR PM ON CLICO PAYOUT financial and other forms of ‘white collar’ crime, Bishop Hall said such offences were so prevalent in the Bahamas that it was “difficult to get a handle” on the problem. He added that CLICO (Bahamas) collapse into

SEE PAGE 5

AML FOODS CLOSES CARL’S JR FRANCHISE By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net AML Foods has decided to pull the plug on its Carl’s Jr franchise and close all three outlets, Tribune Business confirmed yesterday, although no job losses will result. Renea Bastian, vicepresident of marketing for the BISX-listed food retail and franchise group, said all affected employees would simply be redeployed throughout the company’s other brands, which include Solomon’s, Cost Right, Solomon’s Fresh Market and Domino’s Pizza. “All of the Carl’s Jr restaurants are closed as of December 10,” she said. “There has been no loss of jobs. All persons

who were employed with Carl’s Jr will be placed within AML’s existing businesses. “Everyone has basically been reassigned in either Dominos or the delis associated with food stores,” added Ms Bastian, estimating that there were less than 50 persons employed between the three Carl’s Jr locations on the East-West Highway, Carmichael Road and the Mall at Marathon. The move is not a complete surprise, given that Tribune Business reported back in October that AML had “paused” the expansion of its Carl’s Jr hamburger franchise, after failing to generate the return on investment (ROI) it was targeting. Gavin Watchorn, AML Foods’ president and chief executive, said at the time:

“You’ve got to get a return on your investment, and we’re not getting the return we want. “We’re not going to invest any further until we get the return on investment we want.” When AML Foods acquired the rights to the Carl’s Jr brand for the Bahamas in early 2012, the group had talked of investing $3-$4 million over a five-year period to grow Carl’s Jr to a fivestore chain with an annual $15 million top-line at full build-out. The hamburger/fast food market in the Bahamas is highly competitive, with Wendy’s; Burger King; McDonald’s and other brands acting as its main rivals. AML Foods, which also has the Domino’s Pizza franchise, is battling for

CARL’S JR signage is taken down as the hamburger chain closes. Photo: Terrel W Carey/Tribune Staff market share directly with Chris and Terry Tsavoussis, the Aetos Holdings principals (Wendy’s, Marco’s Pizza and Popeyes Chicken), plus George Myers and the Myers Group.

AML Foods Limited, one of the country’s largest supermarket chains, recently opened its third Solomon’s-branded store on New Providence, with the newest store located in Yamacraw. That outlet adds

to the company’s four retail and wholesale grocery outlets currently in New Providence - Solomon’s Super Centre, Cost Right Wholesale and Solomon’s Fresh Market Harbour Bay and Old Fort Bay.

‘DON’T SQUANDER’ TAX REFORM OPPORTUNITY

UNION CHIEF: ‘NO WAY’ WOULD I BREACH LAW

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas was yesterday urged “not to squander the opportunity” presented by outside pressures to undertake comprehensive tax reform and reposition its economy. Emmanuel Komolafe, the Bahamas Insurance Association’s (BIA) chairman, told Tribune Business that this nation should use the forces pushing it to introduce some form of corporate income tax for its own benefit. Rather than simply seek to satisfy the European Union (EU) and Organisation for Economic Co-Operation and Development (OECD) demands, he argued that the Bahamas instead seize the moment to make “more progressive

* BIA CHAIR: ‘GO PROGRESSIVE AND EQUITABLE’ * URGES: USE EU/OECD PRESSURE FOR OUR BENEFIT * CORPORATE TAX ‘NO SYSTEM SHOCK’ FOR MULTINATIONALS and equitable” reforms without increasing the overall tax burden. Mr Komolafe said the imposition of a corporate income tax, should the Bahamas decide to move in this direction, would not be “a shock to the system” for most multinationals and international business entities because they expected to pay something in whichever nation they operated.

SEE PAGE 7

A trade union leader yesterday said there was “no way” he would have agreed to an illegal ‘contingency fee’ in taking on Sandals Royal Bahamian all the way to the Privy Council. Obie Ferguson, the Trades Union Congress’s (TUC) president, told Tribune Business that the claims by the resort, trading as West Bay Management, and its attorneys also “don’t make sense” given the level of financial risk he would have been exposed to. Mr Ferguson was speaking after the Court of Appeal, in a December 7, 2017, ruling gave its reasons for dismissing Sandals’ claim that Mr Ferguson and the

* OBIE: SANDALS’ CLAIM ‘NOT MAKING SENSE’ * COURT DISMISSES RESORT’S ‘CONTINGENCY FEE’ * AND GOING TO PRIVY COUNCIL TOO EXPENSIVE Bahamas Hotel, Maintenance and Allied Workers Union had breached the law of champerty in relation to a Bill of Costs. Champerty is an illegal agreement in which a person with no previous interest in a lawsuit finances it, with the aim of sharing in the proceeds if the action succeeds. The Bill of Costs had been submitted to the Supreme Court for

SEE PAGE 3

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THE TRIBUNE

Tuesday, December 12, 2017, PAGE 3

Bahamian retailers hit by ‘showroom effect’ By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BAHAMIAN retailers yesterday said they have fallen victim to the “showroom effect” with consumers using them as ‘fitting rooms’ before purchasing online. Steve Hoffer, chief executive of Hoffer Sport, one of the largest sporting goods

retailers in the Bahamas, told Tribune Business that many customers were using local merchants to ‘try-on’ or ‘try-out’ items only to purchase them online. “What a lot of people do nowadays is they go into a store, spend an hour trying everything, and go online and order it, and that’s especially with name brand apparel and footwear. We are starting to turn into showrooms. It’s a problem

in the US as well. It’s happening with footwear, clothing or whatever,” he explained. Mr Hoffer said issues such as the cost of freight, import duties and logistics were “only slightly” levelling the playing field for Bahamian retailers. “We have to do things a bit differently,” he added. “The online shopping trend is affecting everyone. It’s a worldwide trend, and

that is why we see malls in the United States shutting down. Online shopping has really taken off in the last few years.” Mr Hoffer said Bahamian retailers would likely see some business from last-minute shoppers this Christmas season, arguing that local retail prices were becoming increasingly competitive despite the tax system-imposed disadvantages. He added that

retail sales have been “way down” this year due to hurricanes and the economy, and said: “We’re going to gauge things for the next couple of days. I don’t expect a banner year in retail, but I can’t really put my thumb on it yet.” Charmaine Daley, manager at John’s Shoes and Accessories on Carmichael Road, told Tribune Business she had witnessed a boost in customer traffic this

past weekend, and expects sales to increase further as Christmas draws closer. “We saw sales pick up this past Saturday. I would say that persons have started their shopping. On Saturday we were bombarded with customers. That has spilled over to this week. The real rush hasn’t started yet, though, and I expect our sales to further increase this weekend,” she said.

LOCAL DESTINATION MANAGER DESIGNS EVENT EXPERIENCE A BAHAMIAN destination management company has been selected to design the event experience for attendees at the 2017 Northstar Meetings Group (NMG) Leadership Forum. Events Design at Sea (EDS), powered by Cacique International, will manage the “rhythm and flow” of the event, while infusing its creative style into all elements to offer attendees a memorable experience. Organised by NorthStar Travel Group, the NMG Leadership Forum is an invitation-only annual

event that brings business leaders and elite planners together from the meetings, sports and motivation industries. Attendees include executives from BI Worldwide, Delta, ITA Group, Maritz, Motivation Excellence, Norwegian Cruise Line, Royal Caribbean International and Silversea Cruises. “We’re very excited to have been chosen as one of the exclusive partners of this year’s NMG Leadership Forum,” said Shawn Sawyer, Events Design at Sea’s president and creative director.

“The Cacique International team has been curating bespoke event experiences around the world for the last 20 years, and Events Design at Sea is a natural extension of that brand. We’re thrilled to be working with the Northstar Meetings Group team, and to share in this event with our MICE and travel industry partners. The three-day event includes education sessions, leisure activities and networking opportunities. Speakers include Roger Dow, president and chief

executive of the US Travel Association; Nan Marchand Beauvoir, managing director of Meetings Mean Business; and Theresa M. Thomas, senior vice-president, Powered by iJet. Danielle CiramiGillis, vice-president of events and tradeshows at Northstar Meetings Group, explained why Events Design at Sea was chosen to design the event. “Our brand is synonymous with exceptional quality, and as such, we only work with the best in the business. This event is held by leaders for leaders, and the team at Events

UNION CHIEF: ‘NO WAY’ WOULD I BREACH LAW AND BAR REGULATIONS

FROM PAGE 1

taxation, as the union sought to recover legal fees paid to Mr Ferguson after winning one of its many court-room battles with Sandals. The West Bay Streetbased resort and its attorney, Ferron Bethell of Harry B. Sands & Lobosky, challenged the Bill of Costs after finding out it had been submitted to the union for the first time in October 12, 2012 - more than four years after the legal work it related to was completed. The Bill of Costs was also sent to the union 14 months after being lodged with the Supreme Court for taxation, and Sandals argued this was sufficient reason to strike it out as it was a “contingency fee agreement” that breached the Bahamas Bar Association’s (Code of Professional Conduct) regulations and the law, rendering it “unenforceable”. Both Justice Ian Winder, sitting in the Supreme Court, and the deputy registrar rejected Sandals’ argument on the grounds that “there was no direct evidence of a conditional fee agreement” between the union and its attorneys. It was a verdict the Court of

Appeal upheld. Mr Ferguson yesterday told Tribune Business it “was never the case” that he and the union had reached a ‘contingency fee’ arrangement, where his compensation depended on winning the legal battle against Sandals. “They [the union] had signed a retainer agreement, and a bill of costs was prepared, but somehow Mr Bethell was of the view that it was done on a contingency basis,” he said. “I told him we could not have done that because it’s contrary to law in the Bahamas. It was never the case, and it would have been difficult for me to go all the way to the Privy Council. “The question of doing the case on the basis of being paid if successful, no, no. They could not produce any evidence to suggest I had engaged with anyone from the union, or any officer of the union, that if I won I would collect my fees from Sandals. “You can do that in the US, but not in UK common law jurisdictions, and I can understand why,” Mr Ferguson added. “The interest will be in you rather than the client. You’d be focused more on what you will get

NOTICE

out of the case rather than dealing with the law at hand. “To go to the Privy Council also costs some money. No way would I agree in advance to make my fees subject to whether I win or not. That does not add up. It doesn’t make sense. If I have to go to the Privy Council, who’s going to pay for that? I certainly wouldn’t do it, and the firm will not do it.” Mr Ferguson and the union, in arguments before the Supreme Court, alleged that Sandals’ Bill of Costs challenge stemmed from the fact that it was doing “everything not to pay” the union’s legal costs. The Court of Appeal judgment recorded how Sandals sought its permission to have the issues raised by its case “certified as a point of law alone of general public importance”. “[Sandals] asserted that the certification sought...... does indeed raise a point of law of general public importance, and that this court must determine whether a conditional fee arrangement ought to be allowed, contrary to the rules of professional conduct for members of the Bahamian Bar, which prohibits such

agreements as repugnant to public policy,” the Court of Appeal said. “The appellant also contended that the general public importance aspect of the point of law is reflected in the public policy reasons against contingency agreements.” But, rejecting Sandals’ claim, the Court of Appeal found: “We considered all of the appellant’s submissions and authorities, and agree with [Justice Winder’s] decision that on the circumstantial evidence advanced there was no evidence of a conditional fee agreement in existence. “In the circumstances, we found that the appellant had not crossed the first hurdle; that is, that his grounds of appeal involved any point(s) of law alone. We were also not satisfied that the appellant had demonstrated that there was any point of law of general public importance arising out of the judge’s decision to be considered.” However, the Court of Appeal said there were other avenues open to Sandals in challenging the Bill of Costs when the taxation hearing was held before the Supreme Court registrar.

NOTICE

NOTICE is hereby given that DIERUNE JOSEPH of Minnie St., P.O. Box N10326, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ALCY BELIAS of Soldier Road, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 12th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

The Bahamas Cycle Company

NOTICE is hereby given that ANNAE CRYSTAL NEELY of #176 Morgan Lane, Freeport, Grand Bahama, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 12th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that DEVANO ASHTON HENDFIELD of Sea Grape, Eight Mile Rock, Grand Bahama, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 12th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

will hold it annual General meeting on Thursday 14th, December at 5pm at the Magnolia Building on the corner of Bay St. and Elizabeth Ave.

NOTICE

NOTICE is hereby given that CLARISE JEAN-LOUIS of Key West Street off Balfour Ave., New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Design at Sea has impressed many of our attendees and their clients over the years with their deep understanding of the client’s needs, unwavering attention to detail and flair for design. We’re looking forward to seeing their expertise and ingenuity on display,” she said. The forum will be held from December 10-13 at The Resort at Pelican Hill in Newport Beach, California. Events Design @ Sea is powered by Cacique International, the Bahamian destination management and event design company.

PAGE 4, Tuesday, December 12, 2017

THE TRIBUNE

Bahamas ‘on probation’: 17-step action plan cure FROM PAGE 1

set out by the CFATF’s parent, and ‘largely compliant’ with a further six. Yet in 2017 this nation was rated as ‘compliant’ on only eight out of the 40, and ‘largely compliant’ with 10 - a reversal of its ratings in the top two categories 10 years’ earlier. The Bahamas’ scores in the ‘partially compliant’ and ‘non-compliant’ categories remained broadly the same. While the Bahamas’ performance was ahead of Jamaica’s, it stood behind the likes of the US, Canada and Singapore. Mr Littrell, in a slide entitled ‘Why no FATF progress’, suggested the Bahamas’ assessment ratings had either declined or stood still because of shifting global standards and its own inaction. He added that the result was that “the Bahamas is in essence on probation” when it comes to its anti-money laundering and counter-terror financing regime, with another CFATF evaluation set for next year. And the deficiencies in the Bahamas’ CFATF report have already attracted international attention, with Transparency International’s official blog carrying a posting headlined: ‘It’s official: The Bahamas has a serious money laundering problem’. The posting highlighted the weaknesses identified in the CFATF report, such as the filing of few suspicious transactions reports (STRs) compared to the Bahamian financial services industry’s size; the weak and limited enforcement capacity of government agencies; ineffective sanctions; and virtually no money laundering-related convictions. Lemarque Campbell, chair of Citizens for a Better Bahamas, the local Transparency International contact, told Tribune Business in a recent interview that the CTATF findings exposed “a long-standing issue” relating to this nation’s ability to effectively enforce the laws already on the statute book. “This has been a longstanding issue over many administrations,” he said. “This [the CFATF report] shows us there’s been a lack of enforcement of actual laws, and there’s been limited capacity to ensure we’re not perceived as a jurisdiction facilitating money laundering. “What we take from this is the Government not only needs to be committed to enforcement but increasing the capacity. When we look at local enforcement capacity, this is something that has to be taken into consideration.” Mr Campbell said Transparency International’s blog posting highlighted how the world would pick up on the Bahamas’ deficiencies, and he warned: “We are going to get scrutinised on this unless there is some action by the Government. “It’s one thing to do the legislation and enact various laws to mitigate the deficiencies, but we can’t really say anything has been done until we see some action, some enforcement of this legislation and capacity in the law enforcement agencies. “Until we see some enforcement of the anticorruption laws....... we will continue to have this perception of facilitating illegal financial transactions. We can have all the laws in place, but if we are not enforcing them we’re going to continue to have the international pressure.” Mr Campbell expressed concern that the Bahamas would adopt the same approach to addressing its anti-money laundering and counter terror financing deficiencies as it had to complying with the OECD’s Common Reporting Standard (CRS) for automatic tax information exchange. The Bahamas had been branded the ‘hold out’ and ‘last tax haven standing’ by the international media, after it was virtually the last jurisdiction to switch from the bilateral to multilateral approach to CRS compliance. The Minnis administration, though, has moved swiftly to address the

CFATF’s findings by tabling new Financial Transactions Reporting and Proceeds of Crime legislation in the House of Assembly for their first reading. Carl Bethel QC, the attorney general, told Tribune Business earlier this year that both Bills were key to addressing many of the anti-money laundering and counter-terror financing (AML/CFT) regime deficiencies identified by the CFATF as he blasted the former Christie administration for failing to tackle these weaknesses. The NRA is intended to provide a ‘road map’ for enhancing the Bahamas’ defences, especially among the non-financial businesses that represent the greatest vulnerabilities. The Assessment said that while legislative changes in 2014 had brought these entities within the Bahamas’ anti-money laundering regime, no supervisory regime had yet been implemented for them. “Vulnerability in the DNFBPs also exists in the lack of supervision of dealers of precious metals and stones, payday lenders, check cashing services, pawnbrokers and nonprofit organisations,” the NRA said. “Legislative provisions capturing these entities within the AML/ CFT regimes were passed in 2014. The relevant agencies are currently devising and developing supervisory regimes for these DNFBPs.” While non-profits and pawn brokers were relatively small segments, the NRA said: “The dealers of precious metals and stones play a rather significant role in tourism – the country’s primary economic pillar as some five to six million tourists visit the Bahamas each year, with a fair portion taking advantage of the product offerings of these businesses. “The NRA did not identify any cases of money laundering or terror financing within these sectors. However, these DNFBPs are significantly vulnerable to domestic money laundering risks and international money laundering/ terror financing risks, but they are limited, in the case of pawn brokers, payday lenders, check cashing due to exchange control rules.” As for web shops, the NRA said: “The domestic gambling house business was identified as having a high level of exposure to money laundering risk due to the potential of laundering funds from locals who are involved in drug, human and gun trafficking, and the need to fully risk assess the sector.” The real estate sector, which the NRA said accounted for 4 per cent of Bahamian GDP, was also identified as a concern given that some developers with in-house financing were not caught within the Bahamas Real Estate Association’s (BREA) “regulatory net”. “Further, at present commercial leasing and rentals are not captured in the Financial Transactions Reporting Act definition as financial transactions, and thereby pose some potential for money laundering risk,” the NRA said. “Trust or escrow accounts held by developers (domestic and foreign) can also pose some money laundering risk.” One of the NRA’s ‘17 steps’ calls for a review of BREA’s regulatory provisions to “strengthen its enforcement powers regarding unauthorised real estate businesses and capture of land developers”. Another proposed action is a “risk assessment” of web shops to determine the potential money laundering/terror financing risk posed by the sector, with industries such as auto dealers and construction also earmarked for such a review. The NRA also calls for the “development of an appropriate regulatory framework for the supervision of the pawnbrokers, dealers in precious stones and metals sectors, non-profits”, and for the manpower and financial needs of all law enforcement agencies to be assessed.

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Tuesday, December 12, 2017, PAGE 5

Bahamians urged: Show ‘more ‘outrage’ over financial crimes FROM PAGE 1 court-supervised liquidation in February 2009 was one example of such “financial skulduggery”, and suggested that “somebody was asleep at the wheel” in allowing the insolvent insurer to move $73 million out of this nation without foreign exchange control approval. Still, Bishop Hall praised the Minnis administration for yesterday coming through with a pre-Christmas gift in the form of a third payout this year to CLICO (Bahamas) former annuity and pension customers. Around 90 per cent of the insolvent insurer’s clients have received their payouts. “In a meeting [of exclients] on Friday, one lady said she was going to get the Prime Minister a Santa Claus suit,” he told Tribune Business. “It’s come at the appropriate time. It lifts the burden of going through this over the last eight years. Thank God it’s come, people have some money for Christmas, and are a little better off financially as a result.” Bishop Hall said he had personally recovered two-thirds of the annuity obligation owed to him when CLICO (Bahamas) collapsed, following yesterday’s maximum $5,000 payout to all claimants. Those with outstanding balances that have yet to be settled will be ‘made whole’ via installment payments over the next four years. The cleric, though, expressed doubts that the Government had implemented sufficient measures to prevent another CLICOtype insolvency from occurring. “As we commend the Government, we also want to call on them to make sure this doesn’t happen again,” Bishop Hall added. “Elderly people who were dependent on CLICO have died and finished their life, and have not collected what was due to them. “It should not happen again. I would hope the Government will put in place some strong policies to prevent that kind of skulduggery from taking place. “I do not know all the ‘ins and outs’. I’m 70 now, and I’m tired of social activism. But when people are exploited and disadvantaged, I feel it is my call to get involved. No one should have to go through this again.” CLICO (Bahamas) failure coincided with the collapse of its Trinidadbased parent, CL Financial, which had provided a $58 million guarantee to its local subsidiary to cover any balance sheet ‘holes’ caused

by its speculative investments in Florida real estate projects. Some $73 million was transferred from CLICO (Bahamas) to finance the Wellington Preserve development without the necessary exchange control approvals from the Central Bank of the Bahamas, which Bishop Hall suggested exposed local regulatory failings. “The Government has a law that you can’t take more than $10,000 out of the country without declaring it, so how did $73 million get out of the country and nobody knew?” he queried. “We need to apply the law straight across the board. I think somebody fell asleep at the wheel. For the poor, the lost and the left out, we should at least try and protect them. “One of the primary tasks of any government is to protect its citizens not only from crime but financial wrongs that can be perpetrated by financial institutions they put their trust in,” Bishop Hall continued. “Once people, rich or poor, put money in a government-regulated institution they should be protected.” CLICO (Bahamas) was regulated by the then-Registrar of Insurance, which was subsequently upgraded to an Insurance Commission as the Ingraham administration beefed up the financial services regulatory regime in response to the debacle. Bishop Hall, meanwhile, called for more public “outrage” over financial crimes and poor business practices, suggesting Bahamians were too accepting of issues such as ever-increasing bank fees. “We have to have more outrage,” he told Tribune Business. “I was in a bank today and had to wait an hourand-a-half to be served. Public outrage needs to heighten so businesses know how much they’re in the wrong. “They don’t do it in the US, they don’t do it in Canada, but they come here and we’re too passive. Passivity is not always a virtue.” Bishop Hall added that the Government and its law enforcement agencies needed to do more to combat ‘white collar’ crime, and said: “It’s so entrenched in our Bahamian culture that it’s difficult to get any handle on it. “In the US all the policyholders of CLICO would probably be rich by now because of this debacle, but here it takes eight to nine years to fix and that’s wrong.”

NOTICE International Business Companies Act (No. 46 of 2000)

JASMINE PTC LIMITED Registration Number: 148981 B (In Voluntary Liquidation) Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 46 of 2000) JASMINE PTC LIMITED commenced voluntary liquidation on the 7th day of December, 2017. Any person having any claim against JASMINE PTC LIMITED is required on or before the 21st December, 2017 to send their name, address and particulars of the debt or claim to the Liquidator of the company, or in default thereof they may have excluded from the benefit of any distribution made before such claim is approved. GSO Corporate Services Ltd., of 303 Shirley Street, Nassau, The Bahamas is the Liquidator of JASMINE PTC LIMITED. GSO Corporate Services Ltd. Liquidator

PAGE 6, Tuesday, December 12, 2017

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Tuesday, December 12, 2017, PAGE 7

‘Don’t squander’ tax reform opportunity FROM PAGE 1 The BIA chair added that reforms must improve the competitiveness of the financial services industry and wider Bahamian economy, without undermining the ‘ease of doing business’, and help to “rebrand and reposition” this nation by shedding the ‘tax haven’ label. “We have that opportunity,” Mr Komolafe told Tribune Business. “Here, people don’t like to talk about taxation as they think the Government is trying to take more money and increase government spending. “It’s not so much to increase government revenue overall, although that may come with a more efficient and effective system, but to have a system that’s more progressive and equitable, and achieves the objectives we’re seeking from an international perspective. “We started the discussion some years ago, and went with VAT then, but I don’t think the discussion on our approach to tax reform has been extended,” the BIA chair continued. “The thing about reform is it has to benefit us as a country, not just satisfy the EU and OECD. We must put ourselves in a position to compete.” Personal and corporate income taxes are labelled ‘progressive’ because the amounts levied are directly tied to a person’s ability to pay, meaning that wealthier companies and persons pay more than those on lower incomes. VAT, though, is viewed as a ‘regressive’ tax because its burden falls disproportionately on the poor, who spend more of their income on paying taxes than the wealthy. The Bahamas, though, adopted a broad-based VAT with few exemptions because it was seen as a more efficient tax that was easier to enforce than an income-based tax. The latter was viewed as complex and expensive to administer, and also ‘alien’ to this nation’s culture because there is no history of income taxes. Mr Komolafe, though, like others before him yesterday pointed out that compliance with the EU’s ‘blacklisting’ criteria and

the OECD’s Base Erosion and Profit Shifting (BEPS) initiative seemed to be forcing the Bahamas to introduce a low-rate corporate income tax of at least 10 per cent. The OECD’s BEPS initiative views any corporate tax of less than 10 per cent as a ‘harmful tax practice’, and the Bahamas’ ‘no tax’ platform - with no incometype taxes of any kind - leaves it potentially in violation. Compliance with BEPS and its ‘fair taxation’ criteria are also being demanded by the EU in return for avoiding its ‘blacklist’, which Mr Komolafe said was adding to the pressure on the Bahamas to undertake more wide-ranging tax reform. “We need to look at this as an opportunity for comprehensive tax reform,” he told Tribune Business, “with due regard for the introduction of a more equitable and progressive tax system. “This exercise need not result in an increase in the overall tax burden for Bahamians, and could entail the reclassification or modification of existing taxes. The reality is that we already have several taxes or fees or levies on businesses, including Business Licence fees, real property tax, NIB, VAT etc.” Mr Komolafe said Business License fees, in particular, were ripe for conversion into a corporate income tax levied on profits. This fee, which typically earns the Government around $120-$130 million annually, is currently applied to a company’s gross earnings, resulting in some businesses either being taxed into a loss or paying in more in taxes than they earn in profits. The BIA chair added that tax reform needed to be combined with “fiscal prudence” and spending controls/reductions, so that any reforms were not geared simply to expanding the size of government. “It’s an opportunity where we look at this holistically,” he explained, “so that every time we have the threat of a blacklist we don’t have a knee jerk reaction. We have seen where the goal posts have been changing, and these reactions don’t position ourselves to grow and maintain what we

have. “It doesn’t benefit us to react every single time. We must have a plan, and can’t be driven by avoiding blacklists and compliance. We have to think about the future. It’s not so much increasing the tax burden but having a more progressive and equitable system in place.” Besides the EU and OECD, Mr Komolafe pointed out that the Bahamas’ proposed accession to full World Trade Organisation (WTO) membership by 2019 would add further tax reform pressure by demanding the reduction or elimination of many import tariffs. “The international pressures present us with a rare opportunity to reform, rebrand and reposition the Bahamas as an international financial centre (IFC) of choice; we should not squander this opportunity,” he argued. “External pressures have put us in a position in which we are being forced to address our system of taxation and chart the course for the financial services industry going forward. “Based on global trends and increased international pressure on tax policies, as well as the exchange of information, our ability to remain competitive will depend on how much we align our practices with the changing landscape.” Mr Komolafe said the Bahamas could also learn from the inclusion of Panama, Barbados and South Korea on the EU ‘blacklist’, as all three had been ‘named and shamed’ for having ‘ring fenced’ preferential tax regimes despite having complied with the OECD’s CRS and BEPS initiatives.

MARKET REPORT FRIDAY, 8 DECEMBER 2017

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,062.24 | CHG -7.50 | %CHG -0.36 | YTD 124.03 | YTD% 6.40 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.77 0.16 5.60 8.70 6.30 5.30 13.33 2.59 1.60 6.01 10.55 11.00 4.50 7.25 12.51 11.00

52WK LOW 4.22 17.43 8.19 3.50 0.95 0.12 3.50 8.40 5.83 3.15 9.00 2.18 1.40 5.82 8.78 5.67 3.35 6.61 12.01 10.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

E J K L M N

CORPORATE DEBT - (percentage pricing)

NOTICE IN THE ESTATE OF SUZELLE MARIE FRANCES GERMAINE ROULEAU of 3759 Rue Gabrielle Vallée, in the Province of Québec, Canada, Deceased IT IS HEREBY NOTIFIED, for the information of those it may concern, that all persons having any claim or demand against the said Estate are required to send the same to the undersigned on or before the 4th day of January, A.D. 2018 and if so required by notice in writing from the undersigned to come in and prove such demand or claim or in default thereof be excluded from the benefit of any distribution made before such debts are proved; AND NOTICE is hereby given that all persons indebted to the said Estate are requested to settle their respective debts at the Chambers of the undersigned on or before the date hereinbefore mentioned. Dated the 5th day of December, A.D. 2017 CALLENDERS & CO. Chambers, One Millars Court, P.O. Box N-7117, Nassau, The Bahamas Attorneys for the Personal Representative

52WK HI 100.00 100.00

52WK LOW 100.00 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB18 FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.10 4.12 1.98 176.30 149.66 1.52 1.69 1.61 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.46 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.31 17.43 9.09 3.68 1.00 0.16 3.70 8.60 6.10 4.93 9.00 2.60 1.51 6.00 10.55 6.29 4.49 7.01 12.51 10.00

CLOSE 4.31 17.43 9.09 3.68 0.95 0.16 3.70 8.60 6.10 4.93 9.00 2.64 1.51 6.00 10.55 5.67 4.49 7.01 12.51 10.00

CHANGE 0.00 0.00 0.00 0.00 -0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.00 0.00 0.00 -0.62 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

108.99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

108.77 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

5,000

1,000

VOLUME

6 NAV 2.10 4.12 1.98 176.30 149.66 1.52 1.69 1.61 1.09 6.97 8.00 6.25 10.96 11.60 10.08

EPS$ 0.444 0.932 -0.223 0.540 -1.220 0.000 -1.462 0.611 0.583 0.196 0.631 0.102 0.392 1.217 0.729 0.484 0.310 -0.668 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.570 0.060 0.050 0.290 0.500 0.000 0.120 0.140 0.580 0.000

P/E 9.7 18.7 N/M 6.8 N/M N/M -2.5 14.1 10.5 25.2 14.3 25.9 3.9 4.9 14.5 11.7 14.5 -10.5 23.0 0.0

YIELD 1.86% 6.48% 0.00% 6.25% 0.00% 0.00% 0.00% 3.49% 3.61% 2.43% 6.33% 2.27% 3.31% 4.83% 4.74% 0.00% 2.67% 2.00% 4.64% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 6.00% Prime + 1.75%

MATURITY 31-May-2018 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 3.64% 4.40% 5.32% 5.91% 1.94% 2.46% 4.66% 3.89% 5.58% 6.65% 3.57% 4.29% 1.59% 2.22% 2.65% 3.25% 3.83% -1.09% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Oct-2017 31-Oct-2017 27-Oct-2017 30-Sep-2017 30-Sep-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225