Abstract
Part I of this chapter is a comprehensive overview of two main offshore financial centres in the Caribbean. These centres include The Bahamas and the Cayman Islands. A look at the general profile of each centre, including an overview of their offshore financial sectors and the anti-money laundering and anti-tax evasion regimes instituted in each jurisdiction prior to 2000, is conducted. Part II of this chapter is a comprehensive overview of two other main offshore financial centres in the Caribbean. These centres include Bermuda and the British Virgin Islands. A look at their general profiles, including an overview of their offshore financial sectors and the anti-money laundering and anti-tax evasion regimes implemented in each jurisdiction prior to 2000 is undertaken.
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Notes
- 1.
Investment funds that are connected to The Bahamas but do not meet the requirements to be recognized as investment funds based in the jurisdiction are obligated to designate a representative approved by the Securities Commission.
- 2.
Bermuda’s GDP was rebased from 2006 to 2013 for the purpose of capturing changes in prices and using current economic data. This exercise was done with the help of the Caribbean Regional Technical Assistance Centre.
- 3.
The international business group consists of businesses involved in insurance risk-taking and insurance brokerage services.
- 4.
Ministerial Statement given by the Hon. Curtis Dickinson, JP, MP, Minister of Finance at the House of Assembly on 13 December 2019, in Hamilton, Bermuda.
- 5.
According to BMA, local company application approvals are included in the data provided. Local limited by Guarantee accounted for 60 and LLCs 40 approvals.
- 6.
Class A exempt funds are required to be open to participants who are qualified, and an investment manager must be appointed by the fund operator within certain stipulations.
- 7.
Class 3A and Class 3B are required to maintain capital the greater of: (a) a risk-based minimum capital that is calibrated to a grade of 99% Tail Value-at-Risk during a time horizon of one year, (b) $1,000,000, (c) net premiums equivalent to 20% for the initial $6 million written during the financial period and of the excess 15% and (d) net loss provisions equal to 15%.
- 8.
Class C is required to maintain capital the greater of: (a) a risk-based minimum capital that is calibrated to a grade of 99% Tail Value-at-Risk during a time horizon of one year, (b) $500,000 and (c) total assets of 1.5% less the balance(s) of all segregated accounts.
- 9.
A Class D insurer is required to maintain capital the greater of: (a) a risk-based minimum capital that is calibrated to a grade of 99% Tail Value-at-Risk during a time horizon of one year, (b) $4,000,000 and (c) total assets of 2.0% less the balance(s) of all segregated accounts for initial assets equivalent to $250 million and of 1.5% for total assets above $250 million.
- 10.
A Class E insurer is required to maintain capital the greater of: (a) a risk-based minimum capital that is calibrated to a grade of 99% Tail Value-at-Risk during a time horizon of one year, (b) $8,000,000 and (c) total assets of 2.0% less the balance(s) of all segregated accounts for initial assets equivalent to $500 million and of 1.5% for total assets above $500 million.
- 11.
The tax groups listed in Section 2 included employment tax, betting duty, contracts exchange tax, hospital levy, hotel occupancy tax, transport infrastructure tax, passenger departure tax, payroll tax, timesharing occupancy tax and timesharing services tax.
- 12.
Unemployment data was not available for 2018.
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Campbell, A.M. (2021). Offshore Financial Centres in the Caribbean. In: Money Laundering, Terrorist Financing, and Tax Evasion . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-68876-9_2
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