NASSAU, The Bahamas – The Covid-19 pandemic has impacted every industry, resulting in economic turmoil globally. Despite this global uncertainty, Minister of Financial Services, Trade & Industry & Immigration, the Hon. Elsworth Johnson is optimistic about the future of the financial services sector. The Minister expressed the government’s commitment in keeping pace with technology while delivering the keynote address at the annual general meeting of the Bahamas Financial Services Board on Wednesday, 30^th September.  The meeting was held via zoom.

“Virtually every industry has taken a hit as a result of the economic fallout; Financial Services has been no exception. However, amid these challenges lie opportunities,” he said. That is what the Ministry of Financial Services, Trade & Industry and Immigration has set its focus on for the immediate and long-term future.”

To this end, he said that the government intends to advance the relevant legislation while also implementing the necessary changes to bring about the modernization and digital transformation needed to not only engage with industry stakeholders during the pandemic, but to be competitive within a 21^st century, technology-focused world.

He said that just in a few months ago – in May of this year – the ministry successfully hosted the first-ever Financial Services Virtual Symposium. He said that the turnout was ‘healthy’ and they received ‘overwhelmingly’ positive feedback from stakeholders. He said that they intend to continue this trend of hosting and participating in more digital engagements in the future. The Ministry’s website (www. mofstii.gov.bs) was also launched in May. It will serve as a central access point for all of the Ministry’s activities and announcements and a portal for industry-wide engagement.

He said that strides have also been made in the Trade Unit, where they have digitalized the process of applying for concessions under the Industries Encouragement Act. Further, he said that they have continued to make progress in the Department of Immigration with the implementation of the Immigration Integrated Management System to allow for cashless transactions, online application processes, and are exploring online and external delivery of relevant client documents.

“I am happy to announce today that we have revamped our Monarch House operation and put in place new leadership to manage processing and customer relations,” he said. “ I have moved the Deputy Director of Financial Services to Monarch House with the intention of bridging the gap between the Department of Immigration and our Financial Services stakeholders, specifically.”  He said that it is the intention of the ministry to make Monarch House a one-stop-shop for enrollment, payment, and collection of documents.

He said this move would address the ongoing concerns about the speed and efficiency of operations there, as it relates to economic permanent residency applications.

Additionally, as a part of the government’s efforts to attract remote workers and students to work remotely in paradise, the Ministry is just weeks away from launching the Extended Visa Stay Programme. He pointed out that Monarch House would also manage the launch of this programme.

A number of amendments to existing statutes to will also be brought to Parliament in the coming weeks. They include:

• The Companies Act
• The International Business Companies Act
• The Property (Execution of Deeds and Documents) Act
• The Rule Against Perpetuities (Abolition) Act
• The Foundations Act

“Several other pieces of legislation are being drafted and reviewed with the objective of creating a modern legislative framework for the long-term stabilization and growth of the Financial Services Sector. Many of these changes have been requested by our industry partners for many years, and, once again, my ministry has made it a priority to deliver results.”

The Ministry will also be launching the Tax Residency Certificate (TRC) by the end of 2020. The TRC, he said, is a high priority item on the Ministry’s agenda, as there has been mounting international pressure to formally identify the expatriate residents and investors who are domiciled within Bahamian borders to ensure greater transparency of income and financial records, particularly for taxation purposes.  He said that the government’s ultimate goal is to fully comply with international information exchange agreements according to the OECD’s Common Reporting Standards.

He said that capacity building has also been high on the agenda. Consequently, for the first time in 5 years, there is a director of financial services. In addition, the Ministry has hired – for the first time ever – a deputy director of financial services. Additional hires include a new director of the trade unit, as well as a consultant specifically tasked with overseeing the roll out of new Alternative Dispute Resolution legislation to establish the Bahamas as a centre for International Commercial Arbitration.

“The Bahamas continues to be a global trendsetter for Financial Services. My ministry has committed itself to ensuring that we maintain our leadership position through constant innovation and growth,” he said. “This is just a snapshot of what we are accomplishing, and to learn more I invite you to tune into my Minister’s Report on October 15^th, where I will be sharing all of this information and more in greater detail. “

He concluded by saying that they are confident that the Ministry will be able to deliver on the short, medium, and long-term objectives, and keep the sector primed for a strong comeback as economic activity returns to normalcy.