STAR Businessweek - 5 May 2018 by STAR Publishing

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$MALL $MALL BUT BUT

MIGHTY

Despite their small size, island economies have Despite their small size, island economies have certain advantages over their larger competitors certain advantages over theirgrowth larger in competitors and can use these to further the and can use these to further growth in the volatile global economy volatile global economy BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT Continued on page 4

Dominican Republic to switch allegiance from Taiwan to China

Continued on page 4

Caymans and Bermuda face new corporate transparency laws British overseas territories, including the Cayman Islands and Bermuda, will be forced to lift the veil of secrecy over the ownership of companies based there after the UK approved radical new measures to tackle money-laundering and corruption Page 7

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THE TIDES OF A TRADE WAR IN THE CARIBBEAN BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

The STAR Businessweek BY CHRISTIAN WAYNE – EDITOR AT LARGE

TOO BIG TO FAIL

Though the phrase ‘too big to fail’ may harken the most of us back a decade to the global financial crisis of 2008, the phrase has actually been in use since the early 80s. Shocking I know. Andrew Ross Sorkin’s Hollywood film of the same name didn’t coin the term. As the world gears up to narrowly avoid yet another financial crisis— subprime car loans, a trillion dollars in student loan debt in the US alone, . . . take your pick— small countries around the world are looking to build their resilience while pursuing growth. More than half of the countries in the United Nations have a population of less than 5 million people. The world we are living in today is one where geographic location no longer means geographic fate. Opportunity is hyper mobile. Technology is borderless. Countries no longer have to export and ship their way to economic prosperity. Being a small nation, in many respects, is an advantage today, not a death sentence. Today, we are too small to fail. The lead story this week boggles a perpetual catechism on the minds of men and women since the days of the apple in the garden—does size matter? And if so, how much does it matter? Read more in $mall but Mighty, an in-depth look at the economic performance and opportunities for small island economies, continued on page 4. Also this week, Taiwan has suffered another significant blow to its global alliance building campaign. Like a scorned lover, Lady Dominicana Republica has banished Taiwan in favour of establishing a diplomatic alliance with the Chinese Communist Party. But like any love triangle worthy of mention, one lover’s loss in always another’s gain. For now, debt trap diplomacy seems to be alive and well. The STAR Businessweek Nothing Personal. It’s Just Business. Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

US companies are the biggest losers in Donald Trump’s trade war with China, rating agency S&P Global has warned

For many years now it’s been clear that greater conflict between the United States and the People’s Republic of China was on the cards. Beijing has continued to enjoy rapid economic growth and, with it, the presumption it’ll one day overtake the United States as the world’s largest economy (in fact by some measures it already has). But this growth has also come with growing instability. Alongside greater strategic tensions surrounding Beijing’s more muscular foreign policy, Beijing has tested the temper of Washington and other trading partners by its readiness to flout international conventions when it comes to trade. The greatest fan and critic of US President Donald Trump would both agree Trump’s temper is a risky thing to test. Now a potential trade war beckons. So what does a US-China trade war mean for Saint Lucia and the Caribbean?

WHY IS IT HAPPENING?

Donald Trump is clearly a break from the norm when it comes to US presidents. A core theme of his presidential campaign declared the US was getting a bad deal on trade, and he’d fix it. This has seen recent sparring back and forth between the US and Beijing over steel tariffs, among other goods. The idea of a full-blown trade war with China is not something any other recent president entertained. Sure there were episodes, like George W. Bush’s steel tariffs. But as is often the case, the Trump presidency here is considering charting new ground. Yet it’s also not completely unreasonable. But Beijing cannot play an innocent party here as the Communist Party of China (CPC) racked up a ton of own goals well before Trump’s election. Chief among them, currency manipulation and flouting global norms that seek to guard against intellectual property (IP) theft. Other nations like Singapore and Switzerland now outpace Beijing in currency manipulation, and some solid inroads have actually been made into stronger IP rules, but a lengthy history remains. And for a president seeking to ‘Make America Great Again’, settling old accounts is essential. But this trade dispute also has an undercurrent.

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China has an eye on the future, especially surrounding Made in China 2015, a ‘grand plan’ policy by the CPC to shift China’s manufacturing sector from making cheap goods to cutting edge tech. Alongside steel, the Trump administration has sought to target tech goods, hindering China’s economic growth. Beijing has been belligerent, but there’s some gamesmanship on both sides.

THE TRADE OFF: GOOD AND BAD NEWS

We’ve often written at The STAR Businessweek about two pillars of the Caribbean economy: tourism and finance. We’ve also discussed the risks of not diversifying the regional economy in the long term, especially as right now there are emerging challenges in both sectors—from Virtual Reality in tourism to the ongoing Panama/Paradise Papers saga in finance—that could pose economic threats. But within this particular area, Saint Lucia and the Caribbean enjoy a relative position of strength. At least in theory, as neither tourists’ ability to visit, nor people’s capacity to bank regionally will be upturned overnight by a trade war. An advantage compared to the US or Chinese steel sector. Controversial sectors, like a now unlimited-application CIP, would also be ancillary in a trade war. But in practice, if the trade war reduces disposal income in American households used for an annual holiday, that could pose a real issue. Post-GFC Saint Lucia has seen a slowdown in tourism over the years, and even when a natural disaster like a hurricane totally misses our island, some tourists unfortunately misunderstand that a hurricane doesn’t impact the whole Caribbean. There are difficult decisions for the Chastanet government in such a scenario like a trade war. Saint Lucia is an open economy, and it’s economically advantageous that it is—in the good times. When global headwinds change, Washington and Beijing can put up tariffs (and while it will be painful) also shrug it off. Continued on page 5

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DOMINICAN REPUBLIC TO SWITCH ALLEGIANCE FROM TAIWAN TO CHINA Taiwan accuses China of using dollar diplomacy BY FT CORRESPONDENT

The Dominican Republic’s foreign minister, Miguel Vargas (left), shakes hands with his Chinese counterpart, Wang Yi, in Beijing

The Dominican Republic is switching its diplomatic allegiance from Taiwan to China, taking the number of countries with formal relations with the government in Taipei to 19, following the establishment of ties between Panama and Beijing last year. The announcement by the Caribbean nation, which had been anticipated by officials in Taipei for several months, prompted a sharp response from the Taiwan government. Taiwan’s foreign minister Joseph Wu said the moves by Beijing to encourage countries to switch allegiance by offering financial incentives would only push Taiwanese people further from China.

Taiwan “strongly condemns China’s objectionable decision to use dollar diplomacy to convert Taiwan’s diplomatic allies,” Mr Wu said on Tuesday. “Beijing’s attempts at foreign policy have only served to drive a wedge between the people on both sides of the Taiwan Strait, erode mutual trust, and further harm the feelings of the people of Taiwan.” A spokesperson for the American Institute in Taiwan, the de facto US embassy in Taipei, said China’s efforts to alter the status quo were “unhelpful” and did not “contribute to regional stability”. In the decades since China was admitted to the UN in 1971, most countries withdrew recognition of the Republic of China, as Taiwan is formally known, to establish formal

Taiwan’s foreign minister Joseph Wu said the moves by Beijing to encourage countries to switch allegiance by offering financial incentives would only push Taiwanese people further from China

relations with Beijing. Both sides have long used promises of financial aid and infrastructure spending to attract allies. But China, which regards Taiwan as part of its own territory, has increased the pressure on the island’s remaining allies since the Democratic Progressive party led by President Tsai Ing-wen took office in 2016, replacing the more Beijing-friendly Chinese Nationalist party, or Kuomintang. Last month, China launched live-fire naval military exercises in the Taiwan Strait, as it stepped up efforts to intimidate Taiwan and deter it from seeking closer ties with Washington. In March, US President Donald Trump signed new legislation promoting higher level visits between Taiwan and the US. The legislation has been opposed by Beijing, which has said it poses a risk to US-China ties. William Stanton, the former top US diplomat in Taipei, said while the loss of Taiwan’s diplomatic allies “is not and has never been strategically significant”, it “contributes to Taiwan’s sense of isolation and growing fear of abandonment by the world”. “China’s brutal bullying tactics serve its sense of empowerment and self-importance and its evident ambition for a greater global role if not dominance, but it also further alienates the people of Taiwan, making reconciliation, much less peaceful unification, an increasingly unlikely prospect,” said Mr Stanton, who now lectures at National Taiwan University. Rachael Burton, deputy director at the Project 2049 Institute, a US think-tank, said the Chinese Communist party “bears the full weight of responsibility for once again acting as the troublemaker across the [Taiwan] Strait”. “The CCP has utilised active measures to coerce the international community, and private corporations, to accept the CCP’s one-China principle,” Ms Burton said. Mr Wu added that China had failed to deliver on promises to former diplomatic allies of Taiwan, including Cost Rica and Sao Tome and Principe. “Developing nations should be aware of the danger of falling into a debt trap when engaging with China,” he said.

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$MALL BUT MIGHTY

Despite their small size, island economies have certain advantages over their larger competitors and can use these to further growth in the volatile global economy Continued from page 1

Island economies are often seen as the underdogs in the global marketplace, but being small has its advantages. With the proper policies in place, small economies can be nimble, flexible and responsive. In a rapidly-changing world, they can pivot for success—diversifying, modifying and getting the jump on bigger, older and more entrenched systems.

STRONG PERFORMANCE

In the past, small economies around the world have waxed and waned with the political and economic climate. In the 19th century heavy industrialisation favoured major players such as the United States and the United Kingdom, which saw soaring productivity and greater trade. The 20th century brought bigger changes with the Great Depression bracketed by two world wars, and the new millennium ushered in another global downturn leaving economies large and small struggling to survive the crisis. Coming out of the 2008 recession, however, small economies suddenly found themselves poised for growth and ready to take advantage of increased globalisation. Emerging markets in South America and Asia began to boom. Today, small economies such as Switzerland, Luxembourg and Singapore continue to overperform. And small economies are on the rise with Ghana, Ethiopia and Bhutan among the world’s top 10 fastest-growing economies in 2018. “The evidence speaks loud and clear: small economies do grow fast and many are already among the world’s most prosperous,” said The World Bank’s Deputy Economist for Latin America and the Caribbean Daniel Lederman, addressing the Caribbean Development Bank’s annual meeting last year. “This is not to say that these economies do not face challenges and that we can be complacent, but believing we can overcome them is a starting point.”

UNIQUE CHALLENGES

Bigger isn’t necessarily better, but that

The Kingdom of Bhutan is a landlocked country high in the eastern Himalayan mountain range with a population of 760,000. Up until about 20 years ago, the country was isolated from the world; Bhutan’s first ever television broadcast occurred in 1999. Since then, information communications technology has made rapid advancement in many areas of Bhutanese life.

doesn’t mean small economies are guaranteed success. With smaller scale production and productivity, these countries face a unique set of challenges. As evidenced in the Caribbean, smaller economies tend to suffer from a lack of resources. A smaller population means a reduced labour force which in turn impacts productivity. In addition, many Caribbean islands struggle with a lack of space— it’s difficult to accommodate large-scale operations when physical amenities such as land are scarce. Economies in the Caribbean also carry a high debt to GDP ratio with the region’s worst offenders being Barbados, Jamaica and Belize. This debt, combined with a lack of domestic savings, makes states that much

more vulnerable to the peaks and troughs of the global economy and is particularly dangerous given the area’s propensity to natural disasters. Hurricanes Irma and Maria, which blew through the islands in September 2017, had a devastating effect on the region’s economic performance overall. The Caribbean is also hindered by its propensity to overspend on the public service. Large governments and high levels of public expenditure siphon off much-needed revenue from the public purse.

FLEXIBLE AND RESPONSIVE

Overcoming these obstacles will take work but Caribbean countries can look to other small states for inspiration.

The most successful small economies are those that understand their natural assets, and leverage them. Being small means being open—to both trade and Foreign Direct Investment (FDI). The latter can be a powerful impetus for growth in Caribbean economies, improving quality of life, increasing employment opportunities and encouraging innovation. Saint Lucia is expecting to receive US$1.5bn in FDI by 2019. Trade is also crucial for small island states, who need to have a foothold in both regional and international markets. In general, small economies can afford to be more specialised in their exports—focusing on more unique and profitable items. They can also change up their export baskets more readily than larger

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economies, diversifying to find niches with the best market potential. “Small economies appear to have an uncanny ability to reinvent themselves more quickly and more often than large economies,” says Lederman. “Simply put, they are more likely than large economies to innovate by introducing new exports and letting go of old ones.” An important element of a robust trade regime is the ability to trade with regional partners. Being small doesn’t mean standing alone. Caribbean economies can overcome many of their challenges by becoming more integrated and building linkages between states. Greater intra-regional trade would help the region’s small producers scale up, increase productivity and raise their standards. A united front would also help the Caribbean break into international markets and increase exports abroad. Regional infrastructure would help islands recover more quickly from natural disasters as those countries least affected could provide economic relief for their neighbours.

The most successful small economies are those that understand their natural assets, and leverage them. Being small means being open—to both trade and Foreign Direct Investment (FDI)

INNOVATIVE GROWTH

Small economies require policymakers with vision as the ability to innovate can mean the difference between stagnation and growth. “Small economies have found a way by being open and nimble, but to create nimble economies, small economies must innovate,” says Lederman. Investing in entrepreneurs, business development and R&D can help the Caribbean become more innovative. Harnessing the power of the region’s creative SMEs and MSMEs to drive up employment, trade and wages would make it more competitive in

the fierce global economy and ensure healthy growth numbers for years to come. The Caribbean is expected to grow by 2 per cent this coming year, according to the Caribbean Development Bank, and Saint Lucia is forecast to be one of the region’s best performers, achieving 3.1 per cent growth in 2018. With stable leadership, reduced public debt, greater innovation and an emphasis on remaining flexible and open, small island developing states can demonstrate that being small is no impediment to growth.

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Pictured is Saint Lucia’s economic scorecard on the ICT Development Index—an annual global report published by the United Nations. Saint Lucia is ranked 24th out of 35 countries in the Americas region, a paltry position barely beating out nations like El Salvador, Cuba, and Haiti.

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THE TIDES OF A TRADE WAR IN THE CARIBBEAN Continued from page 2

But a trade war would mean reforms like the cut of the 2012-introduced VAT from 15% to 12.5% in 2017 would appear minor compared to major decisions on the table.

THE SIDE EFFECT OF A TRADE WAR

The irony for the Trump administration is that Beijing may increasingly hinder its own growth. Recent years have seen President Xi Jingping’s party clamp down on civil freedoms and business regulations, even placing an effectual ban on crypto trading like Bitcoin. And Xi’s power-grab earlier this year to become ‘president for life’ may ultimately make CPC rule more unstable. The CPC can point to Washington and cry foul all it wants about instability, but these activities and adventurism in the South China Sea may be the real threat to China’s growth long-term. But China also recognises its greater engagement in the Caribbean will irritate Washington. This could prove significant in 2018, especially with the Republic of China (Taiwan) diplomacy issue growing locally. Greater engagement by Beijing here would disturb Washington. It shouldn’t go unnoted that it will annoy the Caribbean family too, if its not done for any reason other than just to play politics and ‘poke the bear’ in Washington. Caribbean nations are not chess pieces and, save for perhaps the occasional spurt

of Castro-era remembrance from Cuba, the region has no interest in harkening back to the days of Cold War geopolitics. But if Beijing ultimately backs down to Washington in trade, it will begin looking to apply pressure elsewhere.

IS IT TRUMP OR A TREND?

For nations like Saint Lucia, navigating a potential battle between the goliaths is like being a referee in a boxing match. Castries will need to stay close enough to the action to have a clear voice in the proceedings, but far back enough that it doesn’t get hit. Given his controversial nature, Trump is understandably a lightning rod many people cite as the source of numerous regional problems. But so far the US government under the Trump administration has largely continued ‘business as usual’ in the Caribbean. While Trump has returned the US to a more adversarial relationship with Havana— and CARICOM condemned him for his alleged comments surrounding Haiti and other nations in January of this year—the Trump administration’s focus has otherwise been chiefly in domestic politics, the Middle East and Asia. This is unlikely to change in the near future. The Caribbean would welcome a US president who was more attuned to Latin America. With Latinos a rapidly growing voting blog,

and the 2016 election seeing a candidate pool with two sons of Cuban immigrants in senators Marco Rubio and Ted Cruz, and two fluent Spanish speakers in Rubio and former Florida governor Jeb Bush, the odds are strong it’ll happen in the future. But even if the US were to see a first-generation American of Saint Lucian parents sit in the Oval Office, US policy is unlikely to change greatly, just as Barack Obama’s Kenyan heritage didn’t markedly alter the US-Kenya relationship. US trade goes beyond any one leader: a Hillary Clinton or Bernie Sanders presidency would’ve seen economic similarities to Trumps.

AT THE EDGE

Ultimately, this current standoff between Washington and Beijing likely won’t be borne out in a full trade war. Beyond Trump and Xi, both the US and China’ political class have too many figures keen to see cooler heads prevail. But this is not a guarantee it won’t happen, or it won’t happen again in future. As the Brexit era in the UK has shown, no old certainties are any longer certain. That’s why this is an important moment for old certainties locally to be revisited. Like the one that says the Caribbean will have a strong regional identity and economic integration ‘one day’. The impact of a full trade war could come sooner rather than later, and really hit the Caribbean hard. But a region more closely integrated, and set to stand together, could better guard against it.

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HANDS

THE ROTARY CLUB OF GROS ISLET AND THE GROS ISLET INFANT SCHOOL COLLABORATE FOR THE ENVIRONMENT Students of the Gros Islet Infant School, supported by their parents, came out in numbers to commemorate Earth Day 2018, in a flower planting exercise initiated by members of The Rotary Club of Gros Islet. The infant school students were extremely pleased to be part of a day of Service above Self. Principal Mrs. Joseph-Charles, in her remarks during the ceremony, spoke highly of the investment in her children, as she pointed out that “busy men and women, Rotarians from the Rotary Club of Gros Islet, have worked to make this possible”. She lauded their efforts for their continued involvement with the school through an ongoing Reading Programme. Rotarians make time to visit the school every Monday and enjoy reading sessions with some 50 students from both the infant and primary schools. Hanna Romain, herself a past student of the Gros Islet Infant School, commended the boys and girls for their interest in preserving their environment. She challenged them “to develop their composting programme, and to reuse, reduce and recycle”. District Education officer Mr. Cepal admitted that he was glad that he had given up his cricket match “to join the students as they embark on this journey of planet preservation through the planting of flowers”. The students themselves were enthusiastic about participating in the programme and were undaunted by the “showers of blessing” that arrived during the proceedings. Despite the downpour, the children turned the sod and planted their pods. The Rotary Club of Gros Islet is committed to seeing this flower planting project through to fruition, and to working with the students on a number of projects in the coming Rotary year.

Gros Islet Infant School students at the sod-turning ceremony

The Saint Lucia Government Gazette Company Registration

Name: Lanic Medical Ltd.

Name: Acr en Ciel Ltd.

Description: Provision of medical services

Description: Property holding

Directors: Aylwin Wayne Benjamin

Directors: PIF Corporate Services Inc.;

Date Incorporated: 12-Apr-18

Theobroma Corp.

Chamber: SEDU, Saint Lucia

Date Incorporated: 25-Apr-18 Chamber: Peter I. Foster & Associates

Name: Sai Kripa Inc.

Chambers, Saint Lucia

Description: Restaurant and bar Directors: Govind Chandra Joshi;

Name: Malbach River Estate Ltd.

Bikram Singh Rawat

Description: Property holding

Date Incorporated: 20-Apr-18

Directors: Nick Troubetzkoy;

Chamber: Alcide Associates Chambers,

Yasha Troubetzkoy

Saint Lucia

Date Incorporated: 25-Apr-18 Chamber: Brickstone Law Chambers,

Name: Trust Media Corporation Ltd.

Saint Lucia

Description: Property holding Directors: Timothy Poleon;

Name: Bonaire Villa Inc.

Glenn Charlemagne; Alston St. Remy

Description: Property holding

Date Incorporated: 23-Apr-18

Directors: Duane Jean Baptiste

Chamber: Malcolm Augustin Chambers,

Date Incorporated: 25-Apr-18

Saint Lucia

Chamber: Brickstone Law Chambers, Saint Lucia

Name: TLC Inc. Description: Food retail

Name: Caribbean Financial Solutions Inc.

Directors: Charles Bassaw;

Description: Financial consultancy

Deochan Ramdhanie; Anya Alexander

Directors: Fiona Harris

Date Incorporated: 25-Apr-18

Chamber: Jasamine Stay-Jules Chambers,

Chamber: Norman Francis Chambers,

Saint Lucia

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CAYMANS AND BERMUDA FACE NEW CORPORATE TRANSPARENCY LAWS UK agrees to plans for public registers about company owners in overseas territories BY FT CORRESPONDENT

“It is regrettable that we see this ‘about face’ which fails to acknowledge this long history of enshrined democratic freedoms,” Mr Burt added

The government of the British Virgin Islands has reacted angrily to the UK move

British overseas territories, including the Cayman Islands and Bermuda, will be forced to lift the veil of secrecy over the ownership of companies based there after the UK approved radical new measures to tackle money-laundering and corruption. The Caribbean territories have responded angrily to the measures, which will force them to make public the owners of all their registered companies by the end of 2020, in a significant victory for financial transparency campaigners. Robert Briant, acting chairman of BVI Finance, which represents the British Virgin Islands’ financial industry, said the UK had “shot itself in the foot”. The move would bring into question “the viability” of the BVI’s financial sector, he added. The measures were first proposed by David Cameron, the former prime minister, five years ago amid an international wave of political anger over tax avoidance by big companies and wealthy individuals. But the Conservative government only accepted the transparency measure after a group of its own MPs teamed up with the Labour opposition to amend the antimoney laundering bill being debated in parliament this week. Global Witness, a campaign group, said the UK measure was “a huge win in the fight against corruption, tax dodging and money laundering”. Oxfam also welcomed the move, saying:

“Ending secrecy in UK-linked tax havens will help developing countries to recoup billions of lost revenue that could pay for much-needed schools and hospitals.” But Caribbean governments, many of whose economies depend on financial services and often involve low-tax regimes, accused London of imperial over-reach, saying it violated the sovereignty of their own parliaments. “We vehemently reject the idea that our democratically elected government should be superseded by the UK parliament,” said the BVI government. David Burt, Bermuda’s premier and finance minister, said the move signalled “a retrograde step” for relations between the UK and overseas territories. “It is regrettable that we see this ‘about face’ which fails to acknowledge this long history of enshrined democratic freedoms,” Mr Burt added. “We will take necessary steps to ensure our constitution is respected.” The measure does not apply to Britain’s crown dependencies: Jersey, Guernsey and the Isle of Man. The Foreign and Commonwealth Office in London was originally opposed to the measure, arguing that imposing public registers on overseas territories would create a “potential constitutional conflict” with them and “disenfranchise their elected representatives”. But the government backed down once it was clear the change

had sufficient backing in parliament. Campaigners have argued that public registers can be used by journalists and other interested parties to uncover tax evasion and other malfeasance, pointing to investigations triggered by the leak of the so-called Panama Papers in 2015. James Duddridge, a Conservative MP opposed to the measure, predicted companies registered in Britain’s overseas territories would respond by shifting to secretive jurisdictions such as the US state of Delaware. But Helen Goodman, a Labour MP backing public registers, said overseas territories were allowing “the corrupt to live in comfort”, and that US senators were keen to crack down on Delaware. She disputed the legislation was an attack on Caribbean sovereignty, noting that moneylaundering was a foreign policy issue, within Westminster’s competence. Currently four overseas territories have set up registers of who are the beneficial owners of companies, but the information is only available on request to British law enforcement agencies. Information can be obtained “within one hour in urgent cases”, said Foreign Office minister Alan Duncan. The government had proposed a compromise measure under which Britain’s overseas territories would only have to introduce public registers once such arrangements become the global norm. But John Bercow, the Speaker of the House

of Commons, did not allow the proposal to be debated, pointing out that it had only been put forward on Monday afternoon and published on Tuesday morning. The UK measure on public registers had been pushed by Margaret Hodge, a former Labour chair of the Commons public accounts committee, and Andrew Mitchell, a former Conservative minister, who rallied almost 20 Tory MPs to defy the government. Mr Mitchell said overseas territories were “central to [the] nefarious activity” of moneylaundering through the UK, which the National Crime Agency estimated at £90bn a year. The sanctions bill also includes powers for enhanced sanctions against those suspected of involvement in human rights abuses. The government has agreed to the powers following the Salisbury nerve agent attack in March, which ministers have blamed on Russia. But in a letter to Mr Mitchell, Fabian Picardo, chief minister of Gibraltar, said: “I cannot emphasise enough to you how unacceptable this is.” Mr Picardo described the sanctions as “more than retrograde” and an “unacceptable act of modern colonialism”.

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OECS URGES UK PARLIAMENT TO REJECT DISCRIMINATORY AMENDMENT PROPOSAL TO NEW BILL OECS, April 30, 2018: While we recognize and respect the sovereign right of the UK to determine its national legislation, our concern centers on those provisions which are discriminatory to the BVI and which contravene the constitutional arrangement between the BVI and the UK by which financial services are formally entrusted to the democratically elected BVI Government when the new Constitution was agreed in 2007. The passage of these provisions effectively disenfranchises the BVI people and will undermine the constitutional relationship between the BVI and the UK. The contentious provisions seek to impose a requirement for public registers of beneficial ownership on the financial services of the Overseas Territories. A requirement which is not applied to Crown Dependencies thus appearing to specifically target the Caribbean at a time when several of our Member States are still reeling from the devastation caused by Hurricanes Irma and Maria. The issue of public registers is a matter for international financial regulation, in this case led by the Financial Action Task Force (FATF). It does not require a public register but that

Britain’s House of Commons in session

beneficial ownership information is accessible by law enforcement and/or other competent authorities and is verified. The BVI not only meets these requirements but has enhanced its system through the introduction of an innovative digital platform by which such information is immediately and directly accessible to BVI competent authorities. Further, BVI has firmly stated that if such a requirement is adopted as an international standard then it will comply. In contrast the UK

Register while public, is actually not verifiable, and thereby arguably does not technically meet FATF requirements. Chairman of the OECS Hon. Allen Chastanet of St. Lucia expressed “the ongoing frustration of the OECS Member States having to continually battle the unilateral shifting of goal posts on the financial services front. We have all indicated our commitment to meeting (and in some cases exceeding) international standards of financial accountability and in return expect that these standards are non-discriminatory and take

The OECS calls on the UK Parliament to respect the democratic competence of the people of the BVI in the matter as enshrined in the 2007 Constitution and to take into consideration the disadvantageous impact on the economy of the BVI in its postdisaster recovery. account of the special vulnerable circumstances of small island developing states.” The OECS calls on the UK Parliament to respect the democratic competence of the people of the BVI in the matter as enshrined in the 2007 Constitution and to take into consideration the disadvantageous impact on the economy of the BVI in its post-disaster recovery.

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A hypothecary obligation is a hold over the property for which the loan is being granted. Most institutions hold a first hypothecary obligation, meaning there are no previous holds on the property. In cases where the other institution holds a first hypothecary obligation, have a discussion with your financial institution. Assignment of life insurance forms part of the mortgage security. You may opt to assign your policy to the bank or in some cases, choose credit life insurance - offered by some institutions. Full Hazard insurance is another form of security. In building your home, the insurance required during the construction phase is referred to as “Insurance under Construction,” which can be converted to full Hazard Insurance upon completion of the project. A commitment fee, which is a small percentage of your loan amount, will be required. Other fees include legal and insurance. Visit your financial today!

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