Caribbean links: job losses in Bermuda, Russian money in BVI and offshore budget boost in Barbados

Bermuda: 2400 job losses predicted in 2013, 500 of them in the International Company sector.  

According to a table in the article, the offshore financial sector (International Companies, Business Services and Financial Intermediation) provides over 27% of total jobs in Bermuda.

British Virgin Islands: Signing up to FATCA while attracting Russian money, in a context of political corruption

The government of BVI will be starting talks with the US to comply with FATCA (Foreign Account Tax Compliance Act).

At the same time, Quartz is reporting  that the amount of Russian money heading to the BVI has jumped from under USD 5 billion in the last quarter of 2012 (still a huge amount) to USD 31 billion in the first quarter of this year.  Hat tip: Global Financial Integrity daily email.

All this in a context in which a local social commentator says that “Too many people are expecting pay for their votes” and that “The political atmosphere in the British Virgin Islands now is one of corruption”. Several of the comments below the article confirm his views.

Barbados: government plans to revitalize economy mainly by promoting offshore sector  

On August 13th the Minister of Finance and Economic Affairs of Barbados, Hon. Christopher Sinckler, presented the Financial Statements and Budgetary Proposals of the Barbados Government.

KPMG has provided highlights of the proposals. The first items all focus on attracting offshore investments, including:

– Providing multi-year licenses to International Business Companies for up to three years, “to assist with the burden of renewing licenses annually”.

– Creating a Business Facilitation Unit to add efficiency to the International Business Sector

– Increasing the budget for Marketing and Promotion by 7 million dollars to attract foreign direct investment



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