Be on Guard.
That is what Barbados’ Ambassador in Washington, John Beale, is urging the country’s offshore financial services sector to do despite the fact that Washington’s planned legislative attack on offshore centres in the Caribbean and elsewhere has not materialised so far.
Beale, a former bank chief executive before assuming his current duties, said that there was need for vigilance because the threatened legislation could materialise in the House of Representatives and the Senate at any time.
With United States government spending and that country’s fiscal deficit now major campaign issues, the ambassador has warned that challenges could suddenly emerge on Capitol Hill.
“No legislation has been passed yet to affect the offshore sector, but there are attempts every so often on the horizon. But so far nothing has happened to cause us serious concern,” Beale told BARBADOS BUSINESS AUTHORITY.
“One can expect challenges at any time because the United States needs to raise money any possible way, given its high [fiscal] deficit. You always have to be on guard for these things.”
He said the offshore financial services sector was crucial to Barbados’ economic progress and that was a good reason why everything had to be done to protect it at a time when the island was facing serious challenges.
“The offshore sector is of major importance to Barbados and that’s true despite the fact that the taxes are very, very low,” Beale said.
According to the International Monetary Fund, the total assets of 54 offshore banks in Barbados amounted to almost $100 billion. The assets represented 1 285 per cent of the country’s gross domestic product, with the four largest banks, all Canadian-owned, accounting for 75 per cent of the assets.
