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2018 Barbados International Finance & Business 2018 BARBADOS INTERNATIONAL FINANCE & BUSINESS | 1 Delany_A4Ad_F.pdf 1 1/4/18 3:11 PM 2018 BARBADOS INTERNATIONAL FINANCE & BUSINESS | 3 Sponsors CONTENTS Barbados International Finance & 04 Welcome to the 2018 Edition 24 The Financial Services Business magazine is a publication of Commission: Regulator of Invest Barbados (IB). IB is grateful to Barbados’ Insurance Industry 05 Message from the Minister the international business community and the service providers for their 24 Providers of Cost-Effective support on the editorial committee and 07 Steady Progress Call Centre Services in contributing articles. 08 Income Tax and the The Segregated Cell Company We also thank the following sponsors: 26 Automatic Exchange Of – Rewards and Rating Information International Business Brookfield International Bank Inc. 27 Segregated Cells and Neutralising the Effects Chancery Chambers 10 Incorporated Cells: A of Branch Mismatch Delany Law Barbados Perspective Arrangements: BEPS Action 2 Deloitte & Touche Ernst and Young 28 The Continuing Evolution First Provider 12 Relevance of the Corporate of Captive Insurance KPMG Veil in the Era of KYC Rules Platinum International Business 30 BEPS and Barbados Captives Solutions Inc. 13 Home to the First Peer-to- PricewaterhouseCoopers Peer Lending Fintech in the Caribbean 31 Investment Strategies for Captives International Insurance 14 Meeting the Challenges – Global RE SCC Canadian Tax Appeal 32 ... and so much More USA Risk Group Upholds Barbados 34 Barbados: the Global Choice 15 The Realistic Challenges of for Banking and Wealth Wealth Management PEP Determination – Is It Management CIBC FirstCaribbean International Bank Time for a Change? Cidel Bank & Trust Inc. 36 The Future of the Barbados DGM Financial Group 16 Barbados Goes Global: Offshore Industry in the Age J&T Bank and Trust Inc. Introducing the International of Transparency Scotiabank Securities Market 18 Manufacturing 37 Tailor-made Solutions for Sails for the World LATAM Clients 19 International Business 50 Years Later: Complexity 38 Philanthropic Policy and Class Statements for Family Offices 20 Growth Potential in the USA 21 Barbados Remains the Preferred Conduit for Inward Investment to Cuba 23 Automatic Information Exchange 4 | 2018 BARBADOS INTERNATIONAL FINANCE & BUSINESS Welcome to the 2018 Edition Welcome to the 10th edition It is encouraging to note that in including modern air and sea ports of Barbados International this 21st century, Barbados still • A wide selection of international remains the domicile of choice banks Finance & Business. for Canadian-parented companies • Access to a steady pool of and, more recently, for several talented university graduates, Barbados’ journey as an International LATAM-parented companies as and management and accounting Financial Centre began in the late well. International business entities professionals 1960s, with the introduction of the now number in excess of 4,000 • The Government’s ability to International Business Company and Barbados continues to evolve, continuously negotiate new (Exemption from Income Tax) Act Cap. through the ongoing introduction double taxation treaties (now 77. This was soon followed by the of new legislation and adoption of numbering 39) International Business Companies standards in line with international • A stable political environment Act Cap. 77, the Offshore Banking Act best practices. • A strong legal system based on (since repealed and replaced by the British Common Law. International Financial Services Act Barbados has achieved a global Cap. 325), and the Exempt Insurance reputation as a well-regulated I invite you to consider the competitive Act, Cap. 308 A. In the intervening international business centre. advantage Barbados will deliver to period, successive Barbados your organisation and to become Governments have introduced Some of the contributing factors to a part of the country’s success as it various pieces of new legislation this include: continues to expand in the world of and amended others, in response international business. to industry demands, or to enhance • An easily accessible geographical international competitiveness. location With very best wishes • An efficient infrastructure, James Gardiner 2018 BARBADOS INTERNATIONAL FINANCE & BUSINESS | 5 MESSAGE FROM SENATOR THE HON. DARCY BOYCE MINISTER IN THE OFFICE OF THE PRIME MINISTER Enterprising, Resilient, Focused! Another enterprising our jurisdiction to the consistent implementation of year has passed, with Barbados’ international business the Base Erosion and Profit Shifting (BEPS) initiative. and financial services (IB&FS) sector demonstrating Consequently, in January 2018, Barbados signed the resilience as our country remains focused on the ongoing Multilateral Instrument, one of the four minimum expansion of this vital industry. Several successes have standards necessary to implement the tax treaty- been recorded, despite the various challenges. related measures resulting from the BEPS Action Plan. These challenges, not only common to Barbados Small, open economies, such as Barbados, remain and the wider Caribbean, but also to other countries susceptible to the policies instituted by international across the globe, have in no way disheartened the financial institutions - de-risking being one such policy. Government of Barbados and stakeholders in the While the issue of de-risking still remains a concern for IB&FS sector from advancing in several respects. us, efforts are in train through the Ministry of Finance During 2017, for example, the sector continued to make and Central Bank of Barbados to address this matter. strides in the attraction and expansion of international It is this collaborative and proactive approach that medical schools. Just recently, a third international will enable Barbados, a leading international financial medical school was established in Barbados and at centre, to tackle de-risking and similar initiatives with least two others are expected to commence operations clear and renewed vigour. in the coming months. Based on current projections contained in the October Additionally, the international insurance industry 2017 International Monetary Fund’s World Economic recorded pleasing growth in 2017, with an increase Outlook, the global economic outlook appears to in the number of captives registered in Barbados. offer encouraging prospects. This optimism will Twelve new licenses were issued for Exempt Insurance also transcend to Barbados’ IB&FS sector, as our Companies (EICs), bringing the total number of active government continues, along with Invest Barbados and EICs and Qualifying Insurance Companies, at other industry stakeholders, to promote the country December 2017, to 212 and 54, respectively. as the ideal jurisdiction of substance with which to do business. Progress was also evident in the expansion of our treaty network. A double tax agreement (DTA) came I therefore invite you to examine the many business into force with Cyprus, and the ratification process was opportunities that Barbados has to offer and make effected for the DTA with the Slovak Republic. More this jurisdiction your ultimate choice for international recently, the Barbados/Italy DTA entered into force, business! bringing the total number of DTAs in force to 39. In the latter half of 2017, Barbados became a part of Senator the Hon. Darcy Boyce the Organisation for Economic Co-operation and Minister in the Office of the Prime Minister Development’s Inclusive Framework, which commits 6 | 2018 BARBADOS INTERNATIONAL FINANCE & BUSINESS Change can be a good thing. KPMG AD A smooth transition is the key. Louisa Lewis-Ward Marianne Greenidge Partner, Tax Senior Manager, Tax Barbados and the Eastern Caribbean Barbados and the Eastern Caribbean T: 246 434 3941 T: 246 434 3918 E: [email protected] E: [email protected] Anticipate tomorrow. Deliver today. kpmg © 2018 KPMG, a Barbados and Eastern Caribbean partnership, registered in Barbados, Antigua and Barbuda, Saint Lucia and St. Vincent and the Grenadines, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. CONTRIBUTORS Technical Review: Mary Mahabir Gail Chase Ryle Weekes Ben Arrindell Lex Caribbean Interactive Mobile Solutions Inc. Cidel Bank & Trust [email protected] [email protected] [email protected] Editorial Committee: James Gardiner Glenna Smith Kyle Rudder Paul Jenkins Caroline Gardiner Smith Compliance Consulting Inc. Structured Assignments Inc. Scotiabank Sandra Payne [email protected] krudder@ [email protected] Wayne Kirton structuredassignments.bb Jannette Babb Marlon Yarde Roland Jones Barbados Stock Exchange Liza Harridyal-Sodha The Axebridge Group Harridyal-Sodha & Associates Authors: [email protected] [email protected] Sandra Payne [email protected] Invest Barbados Dana Seymour Eveliny Arnal-Forde [email protected] Doyle Offshore Sails Ltd. Ricardo Knight Total Asset Management JLT Towner Barbados [email protected] Services Ltd. Louisa Lewis-Ward [email protected] [email protected] KPMG Sir Trevor Carmichael [email protected] Chancery Chambers Kirk Cyrus Darren Stark JLT Towner Barbados [email protected] Anchor Counsel Corporation Gloria Eduardo [email protected] [email protected] PricewaterhouseCoopers Dustin Delany [email protected] Delany Law Chris Evans Design & Layout:
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