Barbados is a well regulated and reputable jurisdiction

The Central Bank of Barbados (CBB) has defended the reputation of the island as a “well regulated and reputable jurisdiction” after indicating it was aware of reports in the Canadian press regarding the operation of a Barbados-based financial institution.

In a statement, the CBB said it understood that a statement was issued by that entity stating that it "is not engaged in any business practices that are not legal by the law of Barbados or of the laws of Canada. DGM (the company) is committed to providing important financial services to our clients in a legal and ethical way."

But the CBB said it wanted to reiterate that Barbados “continues to be a reputable and well regulated jurisdiction”.

It said that in the  2013 - 2014 Global Competitiveness Report published by the World Economic Forum, Barbados was ranked 11 out of 148 countries in the area of "Soundness of Banks” and was the only country in the region to have made the top 20, ranking ahead of countries such as the United States  and the United Kingdom.

“Barbados has 33 Double Taxation Agreements (DTAs) and two Tax Information Exchange Information Agreements in force. These unequivocally signify Barbados' commitment to preventing fiscal evasion.

It said the Barbados/Canada DTA, which is based on the OECD (Organization for Economic Cooperation and Development) model, was signed in 1980 and like other treaties provide for effective and transparent mechanisms for taxation of investment vehicles, that accord with Barbados and Canadian law.

“The Central Bank cannot speak to the veracity and context of the purported interview but reiterates that as a jurisdiction we do not promote or condone in any way, persons who seek to circumvent the law, whether it be of Barbados, that of our Treaty partners, or at all,” the statement added.

 

(CMC News)

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Date Posted

October 11 2013