09292023 BUSINESS

Wynn agrees to ‘quashing’ first penthouse approvals

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE DEVELOPER of a 14-storey Goodman’s Bay penthouse complex has restarted its bid for planning permission after agreeing that the initial approvals granted to the project should be “quashed”.

The Wynn Group, which has already completed the adjacent Residences at GoldWynn development, is urging the Town Planning Committee to abide by an Appeals Board order requiring the former to hear its site plan approval application “as expeditiously as possible” in return for not opposing the overturn of its initial permits.

The developer had to wait more than a year for the appeal hearing outcome, which has likely cost the multi-million dollar development both time and money, and its attorneys have urged the Committee to “schedule a

‘Lucrative prospects’: ArawakX refutes $2.4m insolvency woes

public hearing as soon as possible” and ensure it complies with the process laid out in the Planning and Subdivision Act and its accompanying rules and regulations.

Well-placed Tribune Business sources, speaking on condition of anonymity, yesterday confirmed that Wynn had “consented” to the quashing of its earlier approval - provided its site plan application was quickly heard again - on the basis that the legal requirements for public consultation may not have been properly complied with by the planning authorities. The initial “preliminary support of application approval”, which had been granted to Wynn for the second phase of its Goodman’s Bay development on July 12, 2022, was appealed by Eric Hoffer, who is understood to be the penthouse complex’s immediate neighbour to the east.

AG brands The Bahamas’ insolvency regime ‘a joke’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE ATTORNEY Gen-

eral yesterday branded The Bahamas’ corporate insolvency regime as “a joke” and pledged to reform outdated laws and regulations that continue to undermine the financial services industry’s competitiveness.

Ryan Pinder KC renewed his promise to make The Bahamas “a near shore Delaware” through overhauling the bankruptcy and insolvency regulatory framework, which has not been upgraded for decades. He told the Nassau Conference that clients have been leaving The Bahamas due to the outdated regime. He said: “Our insolvency regime is a joke. It instils no confidence in sophisticated

structuring of companies on a commercial basis in The Bahamas. In fact, it was created in the early 1900s. Let’s be real. We need to lead from the front and be innovative. Companies are moving. We know that.

“We are analysing the companies regime, the insolvency and bankruptcy regime, and related legislation, and to prepare recommendations for the

Corporate income tax for Bahamas ‘mammoth task’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

A LEADING Bermuda accountant yesterday warned The Bahamas that implementing a corporate income tax regime is a “mammoth task” that should not be underestimated.

Olivia Espley-Ault, a senior manager in EY Bermuda’s tax practice, told a Nassau Conference panel discussion on corporate income tax and The Bahamas’ tax structure that - should this nation opt for such a reform - it must introduce a system that is simple to verify and enforce

for both firms (taxpayers) and the tax authorities.

She noted that corporate income tax legislation can be updated to carve out a more elaborate regime once The Bahamas becomes more accustomed to the tax, and said: “I think it is something that should never be underestimated.

“I’m not underplaying. It’s going to be a mammoth task to go from no corporate income tax to a well-administered, verified and enforced corporate income tax. But if The Bahamas is to choose a system that is a little bit simpler to follow, both for the taxpayer and for the tax

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Regulator: Financial crime gaps up to 60% of licensee weakness

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE SECURITIES Commission’s top executive yesterday revealed that anti-money laundering and counter-terror financing non-compliance accounts for between 40-60 percent of licensee deficiencies.

Christina Rolle, the regulator’s executive director, told the Nassau Conference that it will next year start imposing fines on licensees if examinations reveal weaknesses and infractions in this area. She said: “Antimoney laundering and counter terror financing probably occupies about 40 percent to 60 percent of the

deficiencies that we see in a licensee.

“Some of the things that licensees have to prepare for is that we will, in 2024, continue to focus on antimoney laundering and counter terror financing. We also will be looking to add to our examination process programmes that go deeper into the products that our licensees are offering.

“One thing that we have been patient with so far, and all of the regulators have in terms of anti-money laundering and counter terror financing features, is coming out of the examinations licensees should expect to in 2024 begin to

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE BAHAMAS’ first-ever crowd-funding platform is asserting it has “lucrative prospects” rather than a $2.4m solvency deficiency as it bids to defeat the Securities Commission’s bid to wind-up its operations.

D’Arcy Rahming senior, ArawakX’s chairman and chief executive, alleged in a September 27, 2023, affidavit that the capital markets regulator’s attempt to enforce its closure via the Supreme Court would be “an unreasonable, unlawful and disproportionate result” that will “damage the markets built” by the platform for the equity financing of small and mediumsized businesses by Bahamians.

Seeking to make the case for why ArawakX should not be subjected to a winding-up Order, he also vehemently refuted the Securities Commission’s allegations that it had committed “governance irregularities, regulatory breaches and possible criminal infractions”.

And, blasting assertions that the crowdfunding platform is also $2m in debt, Mr Rahming countered that there was no evidence “of a single complaint from a member of the public, client or investor” over its operations and pledged that it would abide by any plan agreed with the Securities Commission to increase its equity capital.

“For the avoidance of doubt, the respondent rejects that it is insolvent in the sum of at least $2.4m,” the ArawakX chief said, seeking to rebut the Securities Commission’s most damaging concerns. “The respondent is not the subject of any financial claims or demands as at the date hereof. The respondent also denies that it has committed breaches under the ‘Securities Industries Act that warrant criminal penalties’.

Carnival starts selling 400 cruises to GB port

CARNIVAL Cruise Line yesterday began selling around 400 cruises that will bring guests to its Grand Bahama port destination, Celebration Key, with the first ship arrivals set for July 2025.

The cruise line, in a a statement, said guests can book cruises on the first 12 Carnival ships, sailing regularly from eight home ports, that will visit Celebration Key in 2025 and 2026.

“As the first port destination exclusively designed for Carnival Cruise Line guests, Celebration Key will provide the ultimate Carnival fun in the sun, immersed in the natural beauty of Grand Bahama. Our guests have a wide range of ships, homeports and itineraries that visit our new exclusive destination to choose

from,” said Carnival president, Christine Duffy. “And we’ve seen that there is a lot of interest in Celebration Key as thousands of Carnival guests signed up over the last week to be the first to know about the itineraries and features. The July 2025 opening will be here before we know it, and we are working closely with the Bahamian government and the local Grand Bahama community to make this the premier exclusive cruise port destination in the Caribbean.”

Located on the south side of Grand Bahama, Celebration Key will offer a mile-long beach, Bahamian shopping and dining, and excursions to explore the island. The destination’s offerings will be anchored around what Carnival

described as the largest freshwater lagoons in the Caribbean. Cruise ships will dock at an adjacent pier that can accommodate up to two of Carnival’s Excelclass vessels at the same time.

Technology summit to focus on cyber security

A TECHNOLOGY conference says it will highlight the dangers posed to Bahamian businesses by cyber security threats during a one-day seminar that will be held in Nassau on October 16.

eShore (Cayman), in a statement, said the ArmourExpo technology showcase tour is returning to the Caribbean to sound a critical alert for all companies over the risks posed by artificial intelligence (AI) powered cyber threats. These, it added, include tools, such as ChatGPT, which can present potential dangers for firms with commercially sensitive or proprietary information.

Ken Bodnar, a presenter at previous ArmourExpo conferences, will return to the 2023 series to discuss the 'Ten major cyber security risks of ChatGPT.' The Bahamas event will be held

on Monday, October 16, at the Courtyard by Marriott resort near downtown Nassau.

The conference will feature discussions on information security topics such as identity management, the importance of offshore operations, and key challenges faced by executive boards and IT communities alike. The talks will also delve into advances in FinTech (financial technology), AI and cloud-connected technologies.

Mr Bodnar said: "Cyber security has long been a critical challenge for businesses. However, in the past year, it has evolved into a new threat vector with the emergence of easily accessible Artificial Intelligence tools like ChatGPT.

It is crucial that we reorient our thinking about AI technology, as it serves as a double-edged sword with

a dangerous side that adds a new dimension to cyber threats.

"This makes it easier than ever for cyber criminals to target individuals and businesses. The impact of a single unwary click can lead to catastrophic loss of sensitive data or a system breach, which can paralyse a business."

Polly Pickering, managing director of eShore (Cayman), added: “We enjoy providing attendees a face-to-face opportunity to explore the latest advances in technology and security strategies. Ken Bodnar’s keynote address will undoubtedly be a highlight of the conference. His extensive knowledge and practical experience in emergent technology, spanning AI, machine learning, technical architecture and blockchain, make him the

“This is so exciting for the people of Grand Bahama as we watch Celebration Key come to life. We have a bold vision of how Grand Bahama can become the premier destination for entertainment and events in the region, and we look

ideal choice to educate and inspire participants.”

ArmourExpo's focus is on empowering companies to proactively mitigate risks, embrace modernisation and foster a culture of cyber awareness.

Ms Pickering added: “In today's rapidly evolving digital landscape, cybersecurity is no longer limited to the realm of chief information security officers or specialist cyber staff. It affects anyone with fiduciary responsibility within their organisation. Therefore, it is crucial that organisations of all sizes, from small and medium-sized enterprises to multinationals, arm themselves with the latest information to minimise the risk of falling prey to cyber attacks.”

The co-sponsors with eShore on the tour are Sure Business, Mimecast, Thales, BeyondTrust and OpenText. All attendees will receive a certificate of attendance to acknowledge their contribution in raising awareness and educational levels around cyber security at ArmourExpo 2023.

forward to showing Carnival’s guests a warm and memorable vacation when they start visiting our beautiful island in 2025,” said Ginger Moxey, minister for Grand Bahama. The 12 Carnival ships, sailing regularly from

eight home ports, that will visit Celebration Key are Carnival Celebration and Carnival Conquest from Miami; the Mardi Gras, Carnival Freedom and Carnival Glory from Port Canaveral; the Carnival Dream and Carnival Legend from Galveston; the Carnival Liberty from New Orleans; the Carnival Pride from Baltimore; the Carnival Elation from Jacksonville; the Carnival Sunshine from Norfolk; and the Carnival Spirit from Alabama. Carnival added that it plans to open more than 100 additional Celebration Key itineraries on another six ships in future months.

FAMILY

ISLAND LAND SOLUTION GROWTH KEY

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

RESOLVING land issues in the Family Islands is a key component of the National Development Plan, one of its key architects said.

Dr Nicola Virgill-Rolle, now executive director at the Lyford Cay Foundation, told the Nassau Conference that many Family Islands residents live on generational property without proper land title. This renders them unable to receive financing from lenders such as commercial banks.

Asserting that solving land administration issues involving generational property will allow development to flourish throughout the country, Dr Virgill-Rolle said: “The overall National Development Plan included voices

from across the islands. For example, in many of the Family Islands, generation property and land administration was something that was critical.

“You wonder why you weren’t seeing development, but if you don’t have proper title, proper ownership, things like that, you can’t really develop. You can’t get loans, you can’t have mortgages, and so you’re not going to see development in certain areas.

“Similarly, for New Providence, an issue of land title became very important to the work that we were doing, so that was an issue that emerged that had to be a part of the section on infrastructure. We had to look at land administration, land titling, generation property - all of those types of issues if you were to truly

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ARTIST rendering of Carnival Cruise Line's new Celebration Key at Grand Bahama.

Doctor’s PI expansion tied to Royal Caribbean

By YOURI KEMP Tribune Business Reporter aykemp@tribunemedia.net

A BAHAMIAN doctor yesterday revealed he aims to capitalise on Royal Caribbean's beach club by expanding to Paradise Island with his third footwear store when that project opens in 2025.

Dr Kenneth Kemp, owner/operator of Bahamas Foot & Ankle, told Tribune Business his new orthopaedic footwear store on Paradise Island will target tourists with foot ailments. They will be able to buy the specialised footwear and still enjoy the 17-acre Royal Beach Club and other attractions while on vacation.

“This will be our third location. A lot of people have foot problems, and a lot of it is related to the type of

footwear they wear and the shoes they decide to adorn," Dr Kemp said. "Usually, when they are walking, they are putting way too much pressure on the inside or the outside of their feet, and that constant rotation back and forth strains them.”

Dr Kemp said he has partnered with a “major orthopaedic company”, but declined to identify it. He added, though, that it was “fully on board” with him teaming with Royal Caribbean and tying his expansion to the project's opening.

“The good thing with Royal Caribbean is that they are working with Bahamians, and it’s scheduled to open in 2025, and so you have some breathing room to start that preparation in order to get things in order. In order to facilitate that process you have to start early," Dr Kemp said.

Family Island land solution growth key

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see development occur in The Bahamas.”

Dr Virgill-Rolle said the gaps in available human capital and specialised skills was also explored to ensure The Bahamas is able to “absorb” the amount of foreign direct investment (FDI) being attracted to this nation and capitalise upon this growth.

She said: “We looked at how we attract foreign direct investment, and really being purposeful about that to ensure that we attract things that contribute to the positivity and growth of productivity. But you also have to think about where we were in terms of being able to absorb that FDI, in terms of total absorptive capacity, the human capital necessary to absorb that.

“And then also looking at competitiveness generally, and making sure that we

were doing the things that needed to be done. Looking at the skills.... what are the skill gaps in this country, and how do we make sure that we actually train towards that.”

Dr Virgill-Rolle explained that the National Development Plan also considered the balance of innovation in the country’s financial services sector when set against the regulation necessary to ensure proper monitoring and enforcement. She added that Immigration issues, such as inter-company transfers and staff relocation, were also explored to ensure that Bahamian talent can train abroad and foreigners can gain work experience in The Bahamas.

She said: “Looking at immigration and basic things surrounding our work, surrounding business travel, relocation of staff

and family, entrepreneur class programme, intercompany transfers. That was seen as important to go both ways so that you can build those experiences in the sector and local staff will go on to the training in other areas, and staff abroad will come here as well.

“There was an emphasis on legal skills training as well, looking at the factors that made The Bahamas a desirable place to be located. Looking at innovation-friendly policy, but yet it has to be a prudent regulatory approach and levels of representation on the relevant international committees.

“And really looking at products. So what were the products that were to deepen the sector, and how do we ensure that as an environment that would allow innovation in the creation of products.”

RENDERING FOR ROYAL CARIBBEAN’S BEACH CLUB

Wynn agrees to ‘quashing’ first penthouse approvals

The phone numbers for Mr Hoffer were said not to be working yesterday, but one contact said: “Wynn agreed and consented that approval should be quashed on the condition that the matter be undertaken, and considered, on an expedited basis in accordance with the Planning and Subdivision Act. They didn’t want to waste time, and said: ‘Send it back expeditiously. Let’s do it properly’.

“It was a simple matter. They consented that the process may not have been properly followed. They said they would concede if there was an expedited hearing on the matter. Before you give site plan approval you’re supposed to have a public consultation. They [Wynn] came in and consented.”

The situation thus has some similarities with the procedural irregularities

that derailed the approvals previously granted to Wendy’s for its Paradise Island restaurant, although in both instances the fault appears to lie with the Town Planning Committee’s failure to follow the procedures set out in the Planning and Subdivision Act - and its accompanying regulations - concerning fair public consultation. Randy Hart, the Wynn Group’s vice-president, was yesterday said to be unavailable for comment on the matter. Roger Minnis, of Minnis & Company, who Town Planning Committee papers indicated is likely Mr Hoffer’s attorney, was said to be out of office and also could not be reached. Tribune Business records indicate the penthouse project has expanded in both size and number of units. Marketing materials released back in March 2023 said it would be 12 storeys high, and feature 35

units, but Town Planning Committee materials suggest it has increased to 14 storeys and 40 units. Sales prices in March ranged from $2.6m for a two-bedroom unit to $7.25m for a five-bedroom.

Mr Hart, who in March said the project would be an “elegant addition” to the West Bay Street skyline, predicted that construction would start by summer 2023 and suggested the project’s height was unlikely to run into significant opposition. That start date, though, has already been missed.

“From my window on Cable Beach from the GoldWynn I see multiple buildings, including Aqualina and other ones that are the exact same heights,” Mr Hart said then. “This strip of beachfront here was re-zoned for commercial development and, to my knowledge, we’re not the only ones who are moving forward with development

plans to put 12-storey buildings on the shoreline here.....

“This will be a very elegant addition to the shoreline and, also in terms of density, it would be lower than some of the other buildings on Cable Beach with only 35 units. The building has already gone through the Town Planning Committee and other governmental agencies, and has received the approval of the authorities.” Mr Hart, though, did not mention the existence of Mr Hoffer’s appeal, which had already been filed at that time.

Alistair Chisnell, the Graham, Thompson & Company attorney representing Wynn, in a September 12, 2023, letter called on the Town Planning Committee to fully comply with the decision and order handed down by the Subdivision and Development Appeal Board just four days earlier over his client’s 40-unit penthouse complex.

Referring to the project as ‘Penthouses at GoldWynn’, which will be located next to the developer’s existing Residences and almost directly opposite the West Bay Street entrance to the Prime Minister’s Office, Mr Chisnell wrote: “We note that the Board has advised you that the decision under the Appeal has been quashed, that the [preliminary support] approval is determined to be void and set aside.

“The Town Planning Committee is directed to reconsider, de novo, the application on an expedited

basis and in accordance with the provisions of the Planning and Subdivision Act,” he added in the letter, which was addressed to Keenan Johnson, the Committee’s chairman.

“On behalf of the Wynn Group we hereby confirm that the Wynn Group, as applicant, requests that the application for site plan approval previously submitted in respect of the project be reconsidered by the Town Planning Committee as expeditiously as possible.”

Mr Chisnell’s letter highlighted the Planning and Subdivision Act requirements that, within 21 days of a complete site plan approval application being submitted, a public hearing on the matter is to be held with the director of physical planning giving interested parties due notice and the date provided. And the Committee itself is required to assess such an application within two months of receipt, and “at least 14 days” after the public hearing notice is given.

“Having regard for these provisions and in the circumstances, in connection with the pending application for site plan approval to be issued in respect of the project, we shall be grateful if you would kindly arrange for a public hearing to be scheduled as soon as possible and for notice of such public hearing to be duly published as required,” Mr Chisnell wrote.

The Town Planning Committee appears to be following his request, and the Appeal Board’s

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September 8, 2023, order almost to the letter. The Committee, in a September 20, 2023, letter to Mr Chisnell confirmed that the site plan application was considered at its September 19, 2023, meeting held just one week after it received his letter, with the result that it “deferred a decision in order to have a public hearing to obtain the views of nearby residents”.

And the public hearing for the penthouse development, located on the northern side of West Bay Street overlooking Goodman’s Bay beach, and also featuring 49 parking spaces plus amenities such as pools and bars, has been set down for October 18, 2023.

The Appeal Board, in its ruling and Order, conceded that Mr Hoffer’s appeal had dragged on for too long given that it was lodged more than 13 months ago on July 29, 2022. “Counsel for Wynn Development, and confirmed by Randy Hart, vice-president thereof, duly advised the Board that it accepts the decision under appeal should be quashed but on the condition that this Board direct the Town Planning Committee to reconsider the application on an expedited basis,” it wrote.

“Further, it was agreed that notice of any public hearings by the Town Planning Committee in respect of such application be given to the appellant [Mr Hoffer]. Counsel for the appellant (present via telephone with the appellant appearing in person) agreed to the foregoing.”

As a result, and given “the length of time this matter has been pending”, the Board both “quashed” the original decision and ordered an expedited hearing by the Town Planning Committee.

Corporate income tax for Bahamas ‘mammoth task’

authorities, that’s a great place to start.

“You know, obviously legislation can be introduced every year if they want to go more complex and create some of these more farreaching rules, but I think keep it simple. Administer it in a really effective way as best as you can and just keep building.”

In May, the Government unveiled its its so-called ‘green paper’ on corporate income tax strategies for The Bahamas that contained four reform options.

Ms Espley-Ault explained that whatever policy option is implemented must be simple to administer and protect the domestic tax base. She said: “It’s looking at the policies that are actually implemented, and finding that balance between protecting the domestic tax base and having something that is simple enough to administer.

“If the legislation that is put in is akin to a domestic corporate income tax as opposed to going to a complex worldwide taxation system, that’s a lot more of a simple system that may be easier to administer.”

The EY Bermuda accountant said any system chosen by The Bahamas must also be managed by well-trained officials that review the tax returns filed by firms carefully. She added that administrative costs associated with monitoring the new tax regime could be adversely impacted by ineffective tax collection agents.

She said: “We are pondering over what the rules should look like, but if we get to the stage where those rules are in place, it’s all about verification and enforcement. You know, getting into a system where there’s a way to deposit the tax returns into a portal or whatever system The Bahamas chooses.

“But to make it meaningful you really need to make sure that there are welltrained tax officials who are able to review these returns and look at them critically, apply judgment, suggest adjustments that taxpayers need to make. That takes a lot of time and money to do, and I don’t think it should

be underestimated at all. So that administration component is huge.”

Dwayne Whylly, partner and chair of the financial services group at the Glinton, Sweeting and O’Brien law firm, said administrative costs associated with implementing a corporate income tax regime could be high for small businesses that do not get annual audited reports.

One of the ‘green paper’s reform options is a 15 percent corporate income tax rate for firms that have a minimum annual turnover in excess of 750m euros, and 10 percent on all other business to “maintain regional tax competitiveness”. “I think that’s something that definitely needs to be considered in terms of either of these approaches that we take,” Mr Whylly said.

“For example, if we go with option two, where we’re bringing in corporate tax across the board, now that increases the amount of income we generate from the corporate income tax above using option one, but does that increase the cost of implementation, the costs of enforcement.

“This is not just applying to your top-level multinational entities. This is applying across the board and you have certain businesses it might not be cost effective for them to have audited reports.”

Mr Whylly added that the model chosen by The Bahamas must balance revenue maximisation with cost effectiveness, noting that the options that bring in larger revenue amounts come with greater costs and also require upgraded infrastructure.

He said: “There are certain businesses that don’t operate on a different model, and so you didn’t have to adjust the rules to capture this and capture that. And so, the idea has to be a cost-effective analysis of whichever model we choose and how we can make sure that we’re maximising the revenue from that

“And just because you might be getting in more revenue does not mean that the amount of income that the Government has to use to improve the infrastructure, improve programmes in The Bahamas, is necessarily increasing.”

A corporate income tax will be the first such incomebased levy in the country’s history, apart from the National Insurance Board’s (NIB) payroll-based contributions, and is intended to ensure The Bahamas complies and fulfills its obligations as one of 140 countries that have signed on to the G-20/Organisation for Economic Co-Operation and Development (OECD) drive for a minimum 15 percent global corporate tax. In the first instance, this initiative applies only to corporate groups and their subsidiaries that have a minimum annual turnover in excess of 750m euros. The Government’s ‘green paper’, which is dated May 17, 2023, sets out the first option as merely introducing a 15 percent corporate income tax for all Bahamasbased entities that fall into that 750m-plus turnover category, while maintaining the Business Licence status quo for all entities which are not affected.

The second and third corporate income tax

options, described as “more nuanced” because of the better balance they strike between tax revenue and economic impact, are those the Government indicates it is giving more serious consideration to. The second, labelled as “a soft introduction”, would introduce the same 15 percent rate for all those caught in the G-20/OECD net and also levy a 10 percent corporate income tax on all other businesses “to maintain regional tax competitiveness”. This option, the ‘green paper’ adds, would have minor negative impacts on GDP, foreign and domestic investment, and unemployment. The latter would rise by 0.1 percent, while GDP growth would contract by 0.3 percent and foreign and domestic investment fall by 1.5 percent and 0.3 percent, respectively.

The third option, branded as “simplicity driven”, would exempt or carve-out small businesses earning less than a $500,000 annual turnover to leave them still paying the existing Business

Licence fee. Bahamas-based entities in groups that meet the G-20/OECD threshold would pay a 15 percent corporate income tax, and all other companies generating more than $500,000 would pay a 12 percent rate.

The third option, though, would result in greater negative economic impacts although generating more revenue for the Government. Under this scenario, the ‘green paper’ said GDP growth was estimated to contract by 0.9 percent with unemployment increasing by 0.5 percent. Foreign and domestic investment will fall by sums equivalent to 5.1 percent and 1 percent, respectively. The final option, which will generate the greatest revenue increase for the Government but also inflict the harshest economic impact, is to simply impose the 15 percent corporate income tax rate on all businesses with a turnover greater than $500,000 per annum and a 10 percent on small and medium-sized

JOB OPPORTUNITY

enterprises earning less than that. This would result in an economic contraction of 1.7 percent, or around $200m, the ‘green paper’ projected, with the unemployment rate rising by 0.9 percent. FDI would fall by 10.2 percent, and its domestic investment counterpart by 2 percent. However, government revenues under this scenario are forecast to rise by 96 percent compared to the $140m collected from Business Licence fees in 2019 (see other article on Page 24B). The more favoured options, according to the ‘green paper’, would see government revenues rise by 36 percent and 62 percent from implementing the second and third scenarios, respectively, compared to those same 2019 Business Licence revenues. Just levying 15 percent corporate income tax on those groups targeted by the G-20/ OECD, though, would only produce a 4 percent revenue rise from business community taxation.

the company’s operations, with a strong emphasis on long-term growth and optimizing returns on investment.

Key Responsibilities for this Role Include:

• Collaborating with the board of directors and senior executives to establish both short-term objectives and long-term strategic goals, continuously evaluating the company’s performance and its path to success.

• Overseeing the day-to-day operations of all company divisions to ensure alignment with strategic plans and the achievement of corporate objectives.

• Steering the company towards its primary mission and objectives, serving as a driving force behind organizational success.

• Taking a lead role in executive-level employment decisions, shaping a high-performing leadership team.

• acquisitions, mergers, joint ventures, and large-scale expansion plans.

•

• Promoting a culture of open communication and collaboration across company divisions, fostering unity and commitment throughout the organization.

• Establishing and nurturing relationships with key stakeholders within the community and industry, enhancing the company’s standing in the business ecosystem.

• Cultivating positive business and civic relations to facilitate investments and foster collaboration within the sector.

Educational Qualifcations and Experience:

• A master’s degree in business administration, Finance, or Law.

• Extensive professional experience in leadership roles.

• A minimum of 10 years of experience in a similar executive role.

Competency Requirements:

•

FROM PAGE B1

see penalties with respect to anti-money laundering and counter terror financing. And the policies will likely extrapolate penalties across the population of your clients.”

Ms Rolle added that corporate governance deficiencies, and licensees not fully understanding their product offerings, are also key issues that have been uncovered when the Securities Commission conducts on-site examinations.

She said: “The other big area after anti-money laundering is corporate governance, and licensees ensuring that they have the proper governance structures in place that have proper oversight at the Board level, at risk committee level.

“Another issue that we see coming out of our examinations, we think that licensees probably need to pay a lot closer attention to understanding their product offerings, and developing this framework around their products and understanding the antimoney laundering or the operational risk of their product offering.”

Ms Rolle explained that cyber risks are an area of concern among securities firms through frequent bot attacks that mimic consumer activities, while banks have more antimoney laundering and counter terror financing issues which can leave the industry open to risks.

She said: “Cyber risks are a serious concern, and licensees probably should be paying very close attention to information technology security. We’re seeing a lot of activities within the

space. I don’t know if it’s so much on the banking side as much as it on the securities industry side. We see a lot of bot attacks and bot complaints, and cyber-related activity that that is very difficult to distinguish from a real client of an institution.

“On the bank side its probably much more compliance than it is in the broader industry. But we think that anti-money laundering and counter terror financing is still very much a concern, and it’s a driver for a lot of the risks that we see in in the jurisdiction.”

John Rolle, the Central Bank of the Bahamas governor, told the Nassau Conference that the increasing use of digital currency has highlighted the cyber risks associated with technology advances. He added that the financial sector should get a greater understanding of cyber-related risks from an operational standpoint to better combat it.

He said: “One issue that I highlight from an emerging risk perspective is that I think we want to get to a point from an operational standpoint where we start to get a much more defined understanding and treatment of cyber-related risk.

“The reason why I am also more aware of it is because now with payments, particularly in the domestic space, I think we are all more conscious about the availability issues around services. So technology risk ncan have a cyber malicious component, but it also has other non-malicious components that are equally concerned when you’re looking at our digital channels for service provision.”

• Exceptional leadership, interpersonal, and communication skills, with a talent for motivating and leading teams.

• Strong analytical, decision-making, and problem-solving capabilities.

• business growth and operations.

• An innovative and entrepreneurial mindset, coupled with the ability to attract and retain top-tier talent.

• Interested candidates are invited to submit their letter of application and curriculum vitae to the following address: “Chief Executive Offcer,” P.O. Box CB11642, Nassau, Bahamas. The application deadline is October 2nd, 2023.

Join our dynamic team and lead our company toward a prosperous future. Your vision and leadership will be instrumental in shaping our success.

Regulator: Financial crime gaps up to 60% of licensee weakness

AG brands The Bahamas’ insolvency regime ‘a joke’

preparation of new, allencompassing companies legislation and updated insolvency and bankruptcy legislation. We look to be akin to a near shore Delaware, a jurisdiction known for its commercial expertise and innovation.

“With the international tax and compliance developments, we have seen a move of clients to onshoring or near shoring of company structures. We need to position our jurisdiction to be at the front on this industry movement. Only a sophisticated, international best practices companies’ regime will position us there.”

The Attorney General also revealed that the new online companies portal at the Registrar General’s

Department (RBD) will be launched during the first week in December with more than 400,000 files already migrated to the new platform.

He added: “We have begun the migration exercise and it is going well, having already migrated more than 400,000 files. We have a full-time data verification team that manually verifies data when needed, and have retained a consultant to project manage the process, someone who is known to you.

“I am pleased to be able to announce that, barring any unforeseen circumstances, we are on track for a full launch of the online portal for current companies the first week in December.” Mr Pinder said Registrar General

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, LUCILLE ELOISE VANESSA MORRISON of Davis Street, Oakes Field, New Providence, Bahamas intend to change my name to VERONICA KATHRINE PERRAN . If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O. Box N-742, Nassau, The Bahamas no later than Thirty (30) days after the date of publication of this notice.

NOTICE

Calmek Form Corporation

(In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 19th day of September. Articles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau, Bahamas.

Dated this 26th day of September, 2023

AMICORP BAHAMAS MANAGEMENT LIMITED LIQUIDATOR

employees are currently receiving training on the new system, while a group of financial and corporate service providers (FCSPs) have attended workshops on the new platform to garner feedback. Full industry training will begin in November.

“This platform is designed to be similar to the platform used in the Cayman Islands. In fact, we are using the same developers. The developer has released the system, with mock data, for the Registrar General’s Department users to use in a test environment and become familiar with the functionality prior to supporting their FCSP, mini-agent and business owner user communities. This week, the entire Registrar General’s company team is getting training on the system,” he added.

“We have hosted workshops for a select group of financial and corporate services providers so that they can experience the new system and start thinking about how this new

functionality can be best utilised in their offices. We have solicited their feedback on the new system.

“We anticipate that this small group of financial and corporate services providers will, in October, pilot the live system, meaning that they will have to interact with the Registrar General’s Department staff and perform new incorporations and new company requests utilising the system. This is intended to give the Registrar General’s staff real life experience and training before the launch of the online system. Full training for all of industry will commence in November.”

Mr Pinder added that The Bahamas’ new economic substance reporting platform was launched earlier this month and, to address enforcement capability concerns voiced by the Organisation for Economic Co-Operation and Development’s (OECD) forum on harmful tax practices, regulators have conducted more than 34 on-site inspections of financial services

NOTICE

NOTICE is hereby given that JAMES FAUSTIN, of Hope Town, Abaco, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of September 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

www.bisxbahamas.com

providers while 12,000 deskbased reviews have been completed thus far.

“Our government has retained the firm BDO to develop the reporting platform. As many of you would know, the reporting portal launched earlier this month and is operational for registered agents to report,” the Attorney General said.

“We have also addressed the comments from the forum on harmful tax practices on enforcement matters. The Competent Authority has ensured that our compliance activities are comprehensive. Officers are conducting desk-based reviews of included entities with over 12,000 desk-based reviews completed to date.

“The Bahamas has initiated an onsite-inspection exercise to verify the information sworn to or affirmed in the Competent Authority’s Substantial Economic Presence Portal. Thirty-four inspections have been completed, and an additional 30 have been identified for further review

and on-sites which are currently ongoing.”

Mr Pinder said The Bahamas’ financial sector has been successful thus far due to its ability to adapt and innovate, but he warned that the pace of creativity appeared to have slowed down in recent years.

He said: “We have built this industry, sustaining our viability over the last few decades as an international financial centre, by our ability to be nimble and adapt to changing circumstances by being innovative.

“A partnership between industry and government to continually innovate and develop, often doing so ahead of our competitors, has been our secret of success. I would put it to you that over the last few years we have not kept pace with this mission as it relates to new product development, not abided by our triedand-true strategy, and slow to adequately innovate to keep ahead of the changing business and regulatory environment.”

N O T I C E CALICO HOLDINGS LTD.

NOTICE IS HEREBY GIVEN as follows:

(a) CALICO HOLDINGS LTD. is in dissolution under the provisions of the International Business Companies Act, 2000.

(b) The dissolution of the said Company commenced on the 26th September, 2023 when its Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said Company is Jonell Rolle.

Dated the 27th day of September, 2023.

H&J CORPORATE SERVICES LTD.

Registered Agent for the above-named Company

N O T I C E

EXXONMOBIL EXPLORATION AND PRODUCTION QATAR (UNCONVENTIONAL) LIMITED

Pursuant to the provisions of Section 138 (8) of the International Business Companies Act 2000, notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by The Registrar General on the 7th day of September, 2023.

Dated the 29th day of September A.D., 2023.

D. A. Bates

Liquidator of EXXONMOBIL EXPLORATION AND PRODUCTION QATAR (UNCONVENTIONAL) LIMITED

NOTICE

Preciosa Producciones Ltd.

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 209742 B (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 28th day of September, A.D. 2023.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mrs. Brenda Estefania de Carvalho, whose address is Rua Alex Lizal 170 – CEP: 015138-420, Sao Paulo, SP, Brazil. Persons having a Claim against the above-named Company are required on or before the 28th day of October, A.D. 2023 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the beneft of any distribution made

Dated this 2nd day of October, A.D. 2023.

Brenda Estefania de Carvalho Liquidator

“The respondent also rejects the suggestion that it has been unable to sufficiently provide reasons and/ or documentation to satisfy the Commission that it can remediate these issues. Even the record before the court herein does not support this conclusion.

“The respondent is a company with lucrative financial prospects, with no pending financial claims or complaints against it, and with successful litigation before the Supreme Court against its bankers in the midst of significant settlement discussions. A winding-up Order would be an unreasonable, unlawful and disproportionate result in all the circumstances and damage the markets built by the respondent and its issuers and subscribers.”

Mr Rahming asserted that “there is no substitute for the respondent’s presence in the market at present”, effectively implying that ArawakX is irreplaceable in the shortterm as a mechanism to connect Bahamian companies seeking equity financing via crowd funding with local investors.

“Again, absent evidence of a single complaint from a member of the public, client

prospects’: ArawakX refutes $2.4m insolvency

or investor regarding the respondent, it cannot credibly be said that it would be in the public interest to have the company woundup,” argued Mr Rahming, who previously served eight years on the Securities Commission’s disciplinary committee.

His assertion that there is no “evidence of a single complaint” stands in contrast to the Securities Commission’s version of events, and its account of how James Campbell, the former Colina Insurance Company president, who was ArawakX’s largest investor via almost $1.6m in equity and debt, had approached it last year to voice concerns about the platform’s operations and corporate governance structure (see other article on Page 1B).

The reference to Supreme Court litigation with “bankers” refers to the legal action ArawakX initiated against Bank of The Bahamas after the BISXlisted institution froze all its accounts amid the fall-out from the platform’s battle with Mr Campbell.

Mr Rahming and MDollaz Ltd, ArawakX’s parent, continue to insist the company is financially solvent but this appears

to be largely based on its future earnings prospects. The Securities Commission, by contrast, appears to want the solvency and equity capital concerns addressed through Mr Rahming and his son, D’Arcy junior, investing more of their own funds.

“The applicant [Securities Commission] is aware that the respondent has significant commercial prospects, particularly our pipeline business, the agreement in principle with the Government [to develop a savings bond product] and out other business disclosed to them, and an outstanding claim for significant damages against the Bank of The Bahamas in pending litigation with respect to which we are engaged in settlement discussions,” Mr Rahming asserted.

He argued that this counters “this accusation of insolvency”, and again alleged that the Securities Commission had not allowed it to show it could “substantively address” the insolvency concerns. Rather than being given the chance to provide answers to these questions by Friday, September 18, as it had promised to do, Mr Rahming said ArawakX found itself subject to an

“ambush” and battling to defeat a winding-up petition filed by the regulator that very same day . He also denied that the crowd-funding platform is $2m in debt, arguing that Mr Campbell is seeking an equity interest in ArawakX rather than repayment of his $1.2m investment.

“The suggestion that the respondent is over $2m in debt is also false and misleading,” Mr Rahming argued, “as the applicant is and was at all material times aware that Mr Campbell is seeking an equity position in the respondent and not money with respect to his purported claim for $1.2m.”

Accusing the Securities Commission of a “document dump”, the ArawakX chief argued that the regulator had failed to present any evidence or findings of “governance irregularities, regulatory breaches and possible criminal infractions” that would warrant the crowd-funding platform’s winding-up.

“Instead of affording the respondent a hearing following an 11-month long investigation, and then rendering a reasoned decision, the appellant has unreasonably, unlawfully and oppressively sought to

foist responsibility for considering the materials and evidence elicited during the investigation and arriving at a reasoned decision upon the court,” Mr Rahming charged.

“The respondent remains prepared, and hereby undertakes, to abide by any mutually acceptable plan and/or remains prepared to receive, participate in and comply with a reasonable ‘capital management plan’ as promised and may be issued by the [Securities Commission] in order to return to operation.”

The Securities Commission, which finally received ArawakX’s draft financial statements for the year to end-July 2022 on July 11 this year, said the crowdfunding platform’s external auditors, Lambert Longley and his associate, Charlene Fox-Deveaux, had noted how $1.9m in equity capital had been raised from investors not approved by the regulator.

“The auditor, as a result, is proposing on the draft to classify these persons as creditors rather than equity investors,” the Securities Commission’s winding-up petition said. It also noted that ArawakX had incurred a “major net loss” for 2022, with the amount of ‘red ink’

growing “two times’ for the same 12-month periodfrom $908,637 to $1.75m.

Revenues of $211,135 were dwarfed by $1.909m in operating expenses, and the Securities Commission noted that its “negative equity” had “grown substantially” - increasing more than four-fold yearover-year - from -$551,000 in 2021 to -$2.3m.

“Income of $200,000 is only enough to pay the annual rent and cannot cover other operations expenses,” the regulator added. “Note indicated that accounts payable grew by 1,032 percent and additional debts of approximately $500,000 were indicated in notes 11 and 12. That this company does not have sufficient total assets to discharge itself of its debts, hence the equity is negative.”

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