Jamaica offshore centre plan advances
Published:Sunday | December 19, 2010 | 12:00 AM
It has been three years since the Government announced its intention to establish Jamaica as an international financial services centre (IFSC). But there are laws yet to be passed and an agency still to be set up to promote the business before the country can tap into the industry that has the potential to earn between US$30 and US$300 million in government revenues.
Eric Crawford, the chairman of the committee set up to guide the creation of the Jamaica IFSC (JIFSC), says approval has been granted to move ahead with the final stages.
But the announcement, he said, while addressing Rotarians on Monday, will be done by Karl Samuda, minister of commerce and industry, under whose portfolio the jurisdiction falls.
"We have come a far way and don't want to pre-empt the minister's announcement, but the Cabinet has given the go-ahead for the committee to move to the final stages of development of the centre, and I will leave the details to be announced by Minister Samuda, to whom I report," said Crawford.
The centre requires a slew of legislation surrounding the products and services to be offered and the tax programme that would underlie the low tax offshore centre.
"We would need legislation for the services such as the holding company regime, trust act, because the ones we now have are outdated. There may be about seven to eight pieces of legislation that will have to be drafted," said Crawford.
Jamaica could start offering products on the market within the next two years.
Legislation pending
Legislation is pending - approval for its drafting has been secured - for the creation of a statutory body, which will have operational control over the financial centre.
The JIFSC is likely to be successful, Crawford said, but he added a rider.
"There has to be a political buy-in," he said.
"If you take a look at the benefits that some of the other jurisdictions have enjoyed from the establishment and operation of the IFSC, you will see that it is something that we ought to pay a lot of attention to," he said.
Jamaica's centre is considering captive insurance services, international holding companies, shipping and aviation registry services, and international trust service and partnership services, areas from which to seek business for its offshore zone.
Other products such as international banking services and private equity and mutual-fund products are to be added to the list in the medium to long term.
"If we go to the market with the right set of legislation and regulatory infrastructure, we would have a terrific advantage," said Crawford.
"Bermuda, the cream of the crop, doesn't need to go ask anybody to come and do business because it is recognised as a clean jurisdiction; we need to do that," he said.