STAR Businessweek - 18 November 2017

THE STAR BUSINESSWEEK NOVEMBER 18, 2017

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A BUYER’S MARKET STILL IN RECOVERY FOLLOWING THE GLOBAL FINANCIAL CRISIS, SAINT LUCIA’S PROPERTY SECTOR IS CLIMBING OUT OF ITS SLUMP, WITH GROWTH AT THE MIDDLE OF THE MARKET.

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

Paradise Papers shake Britain’s offshore tax havens

The extensive revelation of offshore tax avoidance structures in the Paradise Papers has put the governments of Britain’s overseas territories, such as Bermuda and the Cayman Islands, on edge.

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If you are looking to purchase property in Saint Lucia, now is the time. That’s the message from the island’s realtors who say it’s a buyer’s market and predict slow but steady growth going forward. When the world’s financial markets tumbled into a recession in 2008, the Caribbean real estate industry took a signficant hit. Plummeting investor confidence caused a sharp decline in sales and the sector has been struggling to recover ever since. Now, however, Saint Lucia’s property portfolio is seeing movement, especially in its mid-level inventory, leading many realtors to express optimism about the market’s future.

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UK shell companies linked to £80bn money laundering Hundreds of British shell companies are implicated in nearly £80bn of money laundering scandals, according to researchers calling for an overhaul of the UK’s “light touch” regulation.

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BEYOND PARADISE What the Paradise Papers will mean

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

The STAR Businessweek

BY CHRISTIAN WAYNE – EDITOR AT LARGE

The Offshore Financial Services industry is a lot like fat. There’s good fats and there’s bad fats. In the wake of The Paradise Papers and the massive scrutiny now being placed on low-tax jurisdictions in the British Isles and the Caribbean, Offshore Financial Centres would find it wise to embody the avocado—green, rich, and full of healthy fats!

For a macroeconomic perspective on The Paradise Papers and what potential ripple effects they may cause, start with our primer Beyond Paradise on page 2.

Anyway, while Brussels, Lewis Hamilton and Wilbur Ross squabble over who’s to blame for The Paradise Papers (hint: start with your own convoluted taxation regimes) Saint Lucia’s zombified real estate market has begun its ascension from the grave. In fact, word around town is that growth is back in the middle market! Read more about Saint Lucia’s real estate industry on page 4 in A Buyer’s Market.

Remember, next week is the launch of The STAR Businessweek’s Special Tourism Edition, an in-depth look at The State of Tourism and all things Simply Beautiful. Accounting for over 13% of GDP, the Tourism & Hospitality industry is one of Saint Lucia’s most dynamic sectors.

Look out for it next week.

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Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

The Paradise Papers is the name given to the leak of over 13 million documents from Appleby, a law firm and provider of corporate services headquarters. While not as large as the leak known as the Panama Papers that occurred in April of 2016, the Paradise Papers remains among the biggest leaks of its kind, with 1.4 terabytes of data released overall.

At the heart of these documents are details surrounding how some of the world’s most affluent investors and businesses have minimised their tax via offshore banking and other financial structures. In many cases, this has allowed these offshore account holders to avoid paying a ‘regular’ rate, if paying any tax at all.

The story has implications for nations and regions around the globe but has a special relevance to the Caribbean given Appleby’s offices “in the key offshore jurisdictions of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, the Isle of Man, Jersey, Mauritius and the Seychelles”.

It is important to underscore that tax minimization strategies are completely legal in many Caribbean nations, alongside other nations around the world. While the revelations in the Paradise Papers will have a significant impact in other areas, and have caused considerable outcry accordingly, there is no suggestion on the facts at hand that any of the clients named in the Paradise Papers have broken the law. Such offshore banking practices may be unsavoury but, at present, are legal.

MOVING FORWARD

Beyond the nuances of tax law, where the Paradise Papers will have the greatest impact is in the political arena. This will be seen generally across the world as pressure grows for a global response to tax minimization strategies that would diminish the ability for wealthy citizens and businesses to move profits offshore.

This effort was well underway after the Panama Papers leak in 2016, and momentum will now increase following the Paradise Papers leak. Nonetheless, while this leak has implications for nations around the globe, fallout from the leak will be particularly visible in a select number of countries, and add another issue to governments already embattled.

SPECIFIC NATIONS

Regardless of whether a reader is US President Donald Trump’s greatest fan or critic, two things can be agreed on by everyone: a) Donald Trump campaigned heavily on delivering a ‘fairer deal’ for

‘regular’ Americans; b) This message was popular with many Americans who felt they were left behind in America’s story of economic growth.

News from the Paradise Papers revealed that former officials like Paul Manafort and current Trump Administration officials like Gary Cohn had links to offshore banking in the Caribbean. Beyond this, the Papers revealing key Trump insiders’ close ties to the Russian government not only risks Trump’s appeal to many who voted for him - the Washington Post going so far as to say the Paradise Papers “expose Trump’s fake populism” - but will also see the federal investigation into potential Russian interference with the 2016 presidential election gifted a trove of new evidence, and avenues for enquiry.

Trump was elected to serve for four years and, unless he resigns or is removed, he will be in office until January 20, 2021, and potentially longer if he runs for and wins re-election. The real risk for Trump and the US in his already unconventional presidency now has another scandal to distract from its focus on core national and foreign policy issues.

Ultimately the information revealed in the Paradise Papers has the potential to damage Trump’s popularity, but not his presidency itself. The same cannot be said for the United Kingdom as news of this story across the British Isles has the potential to wreak havoc on UK politics on a number of fronts.

The UK is a central player in this issue regionally, with the Cayman Islands‚ the British Virgin Islands and other territories retaining a link to London. Closer to home, it has ties with territories like Jersey and Guernsey in the Channel Islands.

These revelations come at a time when the UK and the EU are negotiating what a Brexit deal should look like. Having shown reluctance to move forward with reform following leaks of the Paradise Papers‚ London is on a ‘collision course’ with Brussels over this matter.

It adds another complication to Brexit negotiations that, at time of writing, are held to be in significant trouble‚ logistically and politically. Beyond this‚ London’s desire to largely maintain the status quo while also seeking to work with EU desires for reform appears another wedge issue for embattled UK prime minister Theresa May. With recent reports indicating key supporters have given her until Christmas to lift the government’s performance or face a challenge, it gives rise to the prospect that in 2018 the UK may end up having had three prime ministers in

three years. The potential impact on UK business of any further instability such as a ‘revolving door’ leadership could be significant in a nation that previously saw 20 years shared between three prime ministers: John Major‚ Tony Blair and Gordon Brown between1990 and 2010.

The broader danger with the Paradise Papers is that they not only threaten the standing of particular world leaders of governments, but public confidence in the institutions themselves.

With the global rich-poor gap now at its biggest since the gilded era of magnates like J.P. Morgan, Vanderbilt and Carnegie in the early 20th century, the Paradise Papers undermine the arguments for ‘trickle down economics’ and tax breaks for wealthy citizens based on the proposal that money retained by wealthy entrepreneurs and businesses would then be reinvested into the economy elsewhere.

Many countries in the Caribbean and beyond have seen the diminishment of traditional industries like manufacturing, stalled wage growth, and the broader impacts of disruption and globalization in the online era. With tax, these paint a complex picture with no easy answers.

While it may be legal for the world’s wealthiest citizens and businesses to pay little to no tax in their native nations via offshore banking, it is surely unpalatable to those voters in those nations who are paying their share.

CONCLUSION

The true impact of the Paradise Papers will unfold over time. While offshore banking may be legal, in such a turbulent global economy, many customers, aggrieved to learn that a ‘proudly American’ or a ‘proudly British’ retailer in fact sends most of its profits offshore, may vote with their wallets and shop elsewhere.

Further‚ institutions like Oxford University and Cambridge University, revealed to have offshore trusts, will face difficult questions surrounding their capacity to be leaders of public advancement and community engagement if they are using tax minimization offshore to withhold as much profit as possible from reinvestment among the British Isles.

Attention will now turn to action on global tax structures. Right now the dynamic between Europe and the UK is the one to watch, as a strong result here with reform could be a foundation for further changes elsewhere.

With these latest leaks having raised the ire of many ‘regular’ taxpayers around the world - as the Panama Papers did last year - this ongoing story will remain a political issue for some time. We’ll continue to cover this story and its developments as they arise.

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© The Financial Times Limited [2017]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation

PARADISE PAPERS SHAKE BRITAIN’S OFFSHORE TAX HAVENS

BY FT CORRESPONDENT

British Dependencies, such as Bermuda, account for a large share of the offshore finance industry

The extensive revelation of offshore tax avoidance structures in the Paradise Papers has put the governments of Britain’s overseas territories, such as Bermuda and the Cayman Islands, on edge.

“The Cayman Islands is not a place to hide wealth, and it’s important for the public to know this,” said Tara Rivers, the country’s minister of financial services.

“You cannot hide money or avoid tax in Bermuda,” said David Burt, the island’s premier.

But experts said offshore centres potentially face a heavy blow from the sustained effort to prise open their secrets. Many of them are hugely reliant on financial services, with the sector accounting, for example, for nearly half of

Jersey’s economy.

“The offshore centres are caught in a pincer movement between NGOs [non-govermental organisations] and the media on one hand and regulatory pressure on the other,” said Jason Sharman, professor of international relations at the University of Cambridge.

As a result banks, for example, are now less willing to open accounts for companies in offshore jurisdictions. “Reputation damage has increasingly translated into commercial damage,” he said.

He added that while offshore centres are “pretty resilient”, they are likely to have to improve their transparency further and try to diversify their economies.

Senior figures in the offshore centres are convinced that the timing of the latest

revelations, ahead of a move by Brussels to issue a blacklist of tax havens, is no coincidence.

Gavin St Pier, chief minister of Guernsey, says the “coverage was part of a well-orchestrated, ongoing campaign to gain public access to private financial information”.

He attacked media reports as “misleading, sensationalist and simplistic” and said that, after a meeting of EU finance ministers in Brussels on Tuesday, “senior politicians and officials are clamouring to virtuously say how important it is that the UK cleans up its act with its Overseas Territories and Crown Dependencies”.

His comments highlight the important role played by Britain in the debate about

tax havens, as its territories and dependencies — including Jersey, Guernsey, the Isle of Man, Gibraltar, Bermuda, British Virgin Islands and the Cayman Islands — account for a large share of the offshore finance industry.

In the past, Britain has put pressure on them to adopt more stringent transparency rules but London — broadly satisfied with the progress they have made — is now seen by some in Brussels as keen to protect them.

Sven Giegold, the European Green Party’s spokesperson for economic affairs in the European Parliament, said the British government had been hindering the EU’s fight against tax avoidance and money laundering for years and was particularly sceptical about the tax haven blacklist. ”It takes a lot of British humour to understand that Caribbean islands with a corporate tax rate of zero per cent should not be tax havens,” he said, adding that the Brexit negotiations should be used to “close down the UK’s tax havens”.

In the wake of the meeting, Toomas Tõniste, Estonia’s finance minister who holds the EU’s rotating presidency, said there was new impetus to an EU plan to blacklist tax havens. He said: “There was strong support for the idea of moving forward quickly.”

Mr Sharman said the outcome of the EU’s blacklisting drive was not yet clear, adding that there was “some irony” in the secrecy that surrounded a process that was devoted to increasing transparency.

But he said the EU was seeking to impose its own set of idiosyncratic requirements, even though the offshore centres had good review “which in some cases are better than the UK itself” from the international bodies responsible for policing global rules on transparency and anti-money laundering.

Toby Quantrill, head of economic development at Christian Aid, is a longtime campaigner against the damage tax havens do to developing countries. But he thinks more should be done to help the Overseas Territories to diversify away from their current economic models.

Small island economies are vulnerable and they would not find it easy to replace lost income, he said. “The finance sector is very large in these places. If business moved elsewhere we feel there should be some responsibility to mitigate that.”

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A BUYER’S MARKET

Still in recovery following the global financial crisis, Saint Lucia’s property sector is climbing out of its slump, with growth at the middle of the market.

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

If you are looking to purchase property in Saint Lucia, now is the time. That’s the message from the island’s realtors who say it’s a buyer’s market and predict slow but steady growth going forward.

When the world’s financial markets tumbled into a recession in 2008, the Caribbean real estate industry took a signficant hit. Plummeting investor confidence caused a sharp decline in sales

and the sector has been struggling to recover ever since. Now, however, Saint Lucia’s property portfolio is seeing movement, especially in its mid-level inventory, leading many realtors to express optimism about the market’s future.

“It is not the greatest time [for the real estate sector] but there is potential,” says Donnelly John, Sales and Marketing Co-

Director at Blue Reef Real Estate. “It is a good time to take advantage of all-time low prices - sometimes 15 to 25 per cent off the listing price. We only see growth from here.”

GRABBING THE TOURIST TRADE

Saint Lucia is the second fastest growing tourism destination in the region, according to the Caribbean Tourism Organization.

Visitor arrivals grew by 14.5 per cent between January and August this year and officials expect the numbers will continue to rise for the upcoming winter season.

Given that many buyers start out as visitors, a booming tourism industry is good news for realtors. Newcomers to the island often arrive for a short vacation, expecting to spend a few weeks on a sun lounger and move on. Instead they fall in love with the country’s charms - its beautiful, tropical environment and warm, welcoming atmosphere. For these tourists, a few weeks a year in paradise is not enough.

David Farrin, Managing Director at Doubloon Real Estate, says the growth in visitor numbers is very encouraging: “The more people that come to the island, the more people that fall in love with the island. And the more people that fall in love with the island, the more people who want to buy.”

And he should know - Farrin first arrived in Saint Lucia over a decade ago, intending to stay just a few months. He has now been a resident and realtor for 14 years and, in that time, has seen the sector slump. “The market has been very depressed since the 2008/2009 recession,” Farrin says but adds that there is interest emerging around the US$500,000 pricepoint. “This is the best it has been in seven years. We’re seeing growth around the $500,000 market; it is quite active at that price range.”

Doubloon’s portfolio includes a US$450,000 townhouse in Belle Vue with three bedrooms, and a US$575,000 waterfront condo in a gated community.

Both properties are close to Rodney Bay - a popular area for home-hunters thanks to its proliferation of bars, restaurants and shops, as well as its proximity to the beautiful Reduit Beach.

At Blue Reef Real Estate they are also seeing interest in the mid-range homes, particularly around the US$350,000 mark.

“We have continuous growth around that price,” says John who adds he has noted a lot of interest from the Canadian and US market recently.

WHY BUY?

Farrin, who deals primarily with buyers from the UK, Canada and America, says most property-hunters are looking for a second home - either to rent out or to enjoy themselves throughout the year.

“There is a generation of 40- to 50-yearolds coming through now who have more leisure time and want to invest in a second

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Number 3 Zara Villas, Belle Vue, Saint Lucia: Property Size: 2,990 square ft; Bedrooms: 3 Bathrooms: 3.5 Price: US$ 450,000 - Doubloon Real Estate, David Farrin: david@doubloonrealestate.com

Some foreign buyers want to be more than just seasonal visitors. Under Saint Lucia’s Citizenship

by Investment Programme, foreign investors can obtain a Saint Lucian passport through a number of means including a minimum US$100,000 donation to the National Economic Fund or a $300,000 investment in a real estate project.

home. They want a place they can lock up, go away and then come back to when they want. Properties in Saint Lucia fit that bill.

Saint Lucia does not disappoint. People are friendly and helpful and it is a very beautiful island.”

John agrees and says Saint Lucia stays ahead of its Caribbean competitors by capitalising on its environmental assets.

“Saint Lucia is known for its natural beauty, its landscape. The views from most of the properties here are outstanding and there’s lots to do in terms of nature and ecotourism. People who are seeking that kind of

experience can get it here.

“It does check a lot of boxes on what most people are looking for when they imagine living on a Caribbean island.”

From the very first phone call to the sale’s completion, Farrin says it can take up to six months for a foreign buyer to acquire property. If buying from a private corporation, the sale can close much quicker - taking around six weeks - but private purchases can drag on. Foreign investors must obtain an Alien’s Landholding License which can slow down the process. “The time it takes varies dramatically [and] buyers can

get very frustrated,” says Farrin. “The legal system is pretty straightforward; there is nothing to be wary of but it is timeconsuming.”

Time-consuming but worth it. Most foreign buyers love life in Saint Lucia and become committed members of the island community. Farrin says he’s had very positive feedback from buyers throughout his career, with the most satisfied customers becoming friends. “We have a high percentage of clients who have become personal friends and when they visit we will go out with them, play golf, have a meal.”

Some foreign buyers want to be more than just seasonal visitors. Under Saint Lucia’s Citizenship by Investment Programme, foreign investors can obtain a Saint Lucian passport through a number of means including a minimum US$100,000 donation to the National Economic Fund or a $300,000 investment in a real estate project. This is a major sweetener for some buyers, according to John who says: “Saint Lucia has very attractive residency and citizenship programmes and that creates interest.”

GROWTH AHEAD?

Saint Lucia saw an upswing in tourism and construction activity in 2017. The US$2.6bn Pearl of the Caribbean mega-resort was officially launched, Ritz-Carlton signed an agreement to open a 180-room hotel in Vieux Fort, Sandals released plans for its fourth property on the island and the Hilton Curio said it would develop a new 180-room property in Rodney Bay. This recent buzz has given realtors hope and, heading into 2018, the sector is cautiously upbeat.

“There is a lot of investor interest for projects that have been on pause or for new projects [and] there is land being sold to developers or people who plan to develop,” says John. “That is always going to generate new interest in real estate.” The veteran realtor also wants to see more developers plugging the gap in the higher end of the market - providing inventory for high net worth buyers who are seeking passports along with their properties.

In the meantime, the middle market is where most are focussing their efforts. “I’m not so sure that anything dramatic is going to happen over the next few years [but] there is every reason to think the US$500,000 market will continue to grow,” says Farrin.

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CORPORATE

HANDS

FLOW CHRISTMAS COMMUNITY PROJECTS KICK OFF IN LABORIE Castries, Saint Lucia, November 8, 2017 – The transformation of the Laborie Village is nearly complete, thanks to the intervention and support of the island’s leading telecommunications service provider, Flow.

As part of its Christmas campaign this year, Flow is undertaking a series of projects that will have a lasting impact on every corner of Saint Lucia. Projects were identified by the local Constituency Councils, in collaboration with the Ministry of Local Government.

Partners so far include outsource company STACS, alongside Harris Paints, Caribbean Metals Ltd. and Peter and Company Distribution.

The Laborie project, just in time for the celebration of Festen Labowi, covers restoration and repainting of the square’s walls, gazebo and fountain, in addition to refurbishment of the park benches. The work, over some six days, from preparing the surfaces to woodwork and painting, was all done by STACS and Flow management and employees, in conjunction with the Constituency Council.

Said Winston Bicar, Clerk of the Laborie/ Augier Constituency Council: “What Flow and their partner companies are doing here is really very commendable. On behalf of the people of Laborie, I must applaud them for this massive effort. They literally worked night and day to make sure the venue was ready for Friday. The result is

absolutely beautiful, and we thank Flow for being such a caring and committed corporate citizen.”

Mr. Bicar also joined Flow Country Manager Chris Williams as he presented early Christmas hampers to less fortunate families. The recipients, from Desmond Collymore Drive, Banse La Grace and Augier, were selected by the Constituency Council.

All expressed their thanks to Flow, Peter and Company and partners for their generosity.

As well as its community project, Flow will also be gifting one customer from Laborie with a cash prize this Christmas. One winner will be selected from each of Saint Lucia’s 10 districts, and there will also be two grand prizes - a Full Service Bundle with 12 months of free services, and a $13,000 Smart Home Technology Bundle, inclusive of a smart TV, smartphone, computer tablet and more.

To qualify for the prize draws, customers can Top Up at least $15, buy any Flow mobile handset or sign up for selected combo plans on Saint Lucia’s fastest 4G LTE network.

They can also get in with a chance to win something extra for Christmas by signing up for landline, postpaid mobile, broadband or TV, upgrade an existing service or pay any Flow bill in full and on time.

Customers can also take advantage of significant discounts on mobile handsets, with free Bluetooth speakers accompanying selected models. Mobile customers will

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be treated to free double data whilst TV customers are able to enjoy discounts, special offers and free views of selected packages including Fox Premium, the HBO Movie Pack, and the Flow Sports Pack.

The next planned Flow Christmas community project is the painting of a comfort station on Bay Street in Gros Islet.

Fulfilling the Flow promise of “building, connecting and serving”, the 2017 Flow Christmas campaign includes well over $100,000 worth of giveaways, gifts, cash and prizes, community giving and discounts.

THE

NOVEMBER 25TH 2017

INTRODUCTION

Accounting for over 13% of GDP, the Tourism & Hospitality industry is one of Saint Lucia’s most dynamic sectors. In 2013 alone, Saint Lucia won over 100 international destination tourism awards and despite a dampening in overall tourism expenditure, the island is still projecting modest growth in 2018 as several strategic initiatives from major resorts, travel partners, and the country’s new Tourism Authority begin to take effect.

While the future of Saint Lucia’s tourism industry is bright, growing pains should nevertheless be expected. Not only have travellers themselves

changed (see Tourism’s Coming of Age: The Millennial Traveller), but so has the industry itself. Technology has transformed the business of tourism in many ways, but with new opportunities comes new challenges (see Small Pond or Big Fish?

Airbnb in the Caribbean).

In this Special Tourism Edition of The STAR Businessweek, we’ll speak with industry specialists on the State of Tourism and what we can expect on Saint Lucia’s horizon.

Please see next page for a preliminary list of articles that will be published in the November 25th Tourism Edition of The STAR Businessweek: *subject to editorial revision

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Laborie Village Square bench - before and after

Laborie Village Square fountain - before and after

Company Registration Name: T-Shirts & Souvenirs Plus Ltd. Description: Wholesale/Retail of Clothing & Souvenirs Directors: Lydia Sadoo Date Filed: 16-Oct-17 Chamber: Kenny D. Anthony Anthony & Antoine Chambers - Saint Lucia

Wines, Household Products, Pharmacy Products, and Pet Supplies Directors: Wadi Zakhour; Ben Gillmor; Charlotte Gillmor; Norma Chreiki Date Filed: 3-Nov-17 Chamber: Aisha Jn. Baptiste-Sealy - Saint Lucia

Name: Caribbean Spirits Ltd Description: Processing & Distilling of Local Products to Market High Quality Spirits “Eau de Vie” and Spirits (excluding Rum) Directors: Eike Lauff Date Filed: 1-Nov-17 Chamber: Stanley Felix Chambers - Saint Lucia

Name: Rayneau Gajadhar Developments Ltd. Description: Development Company Directors: Rayneau Gajadhar Date Filed: 6-Nov-17 Chamber: Michael Gordon Gordon, Gordon & Co. - Saint Lucia

Name: Tours Safari Inc. Description: Tours, Transfers, and Taxi Service Directors: Michael Gustave; Carlyle Gustave; William Brathwaite Date Filed: 2-Nov-17 Chamber: Delia Daniel - Saint Lucia

Name: Rayneau Rentals Inc. Description: ( A ) Sales & Rentals of Property, Buildings, and Tools ( B ) Repair of Tools Directors: Rayneau Gajadhar; Mokesh Gajadha Date Filed: 6-Nov-17 Chamber: Michael Gordon Gordon, Gordon & Co. - Saint Lucia

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TOURISM EDITION

For advertising or more info, please contact Sales at sales@stluciastar.com or 1.758.450.7827 www.stluciastar.com www.facebook.com/stluciastar

Flow presented grocery hampers to needy families in Laborie and Augier

Name: Grand Southern Ltd. Description: Property Development Directors: Lau Siew Hong; Richard Yoong Ka Hian Date Filed: 2-Nov-17 Chamber: Grant Thorton - Saint Lucia Name: Majesty Palm Ltd. Directors: Majesty Palm Holdings Ltd. Date Filed: 1-Nov-17 Chamber: Nicholas George Dyer - Isle of Man Name: Season Inc. Description: Retail/Personal Shopping Directors: Sarah Flood-Beaubrun Date Filed: 3-Nov-17 Chamber: Mark Maragh - Amicus Legal - Saint Lucia Name: The Marketplace Marina Ltd. Description: ( A ) Wholesale/Retail ( B ) Supermarket & Grocery Store ( C ) Retail of Foods, Beverages,

Name: Issy “B” Inc. Description: ( A ) Real Estate Investments ( B ) Creative Design Services Directors: Henrietta Brenda Brooke Date Filed: 2-Nov-17 Chamber: Lorraine Debra Glace - Saint Lucia Name: Pin Trucking Service Inc. Description: ( A ) Rental & Lease of Motor Vehicles ( B ) Haulage of Goods by Land Directors: Marilyn Schultz; Richard Mathias Date Filed: 6-Nov-17 Chamber: Marius Wilson - Saint Lucia Name: Mount Para Villas Ltd. Description: Guest Services Directors: Malcom Charles; Selma Khodra-Charles Date Filed: 7-Nov-17 Chamber: Michael Gordon Gordon, Gordon & Co. - Saint Lucia

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© The Financial Times Limited [2017]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation

UK SHELL COMPANIES LINKED TO £80BN MONEY LAUNDERING

BY FT CORRESPONDENT

The Paradise Papers’ focus on offshore centres is a distraction from the most important point.

There is more money laundering in London and New York than on small Caribbean islands.

Hundreds of British shell companies are implicated in nearly £80bn of money laundering scandals, according to researchers calling for an overhaul of the UK’s “light touch” regulation.

Transparency International UK, a nongovernmental organisation, said the UK was home to a network that operated much like the companies at the heart of the Paradise and Panama papers.

Duncan Hames, director, said: “As fingers point to jurisdictions like Panama and Bermuda, it shames the UK that companies are being set up under our noses, with the sole purpose of laundering illicit wealth; money very often stolen from some of the poorest populations in the world, starving them of vital resources.”

Opposition MPs renewed calls this week for the government to force the Overseas Territories and Crown Dependencies to adopt the UK’s system of providing public access to information about who really controls companies.

Transparency International said the UK’s approach constituted “real progress” but threatened to be undermined by lack of checks on the company register and inadequate money laundering supervision.

It also said the UK had insufficient controls when it came to setting up companies: “There are practically no barriers to UK companies being incorporated by money launderers and no way of tracing their use after they have

been established.”

Arguments about the effectiveness of the UK’s approach to regulation have been a big issue for offshore finance centres in recent years as they have come under pressure to open up company ownership registries to public scrutiny. The Cayman Islands, for example, has branded the UK’s transparency drive as “pointless” because it does not require the information on the register to be verified. It said it had a better system because it required company service providers to collect and verify the information.

Transparency International said it had found 766 companies registered in the UK that had been directly involved in laundering stolen money out of at least 13 countries. These companies are used as layers to hide money that would otherwise appear suspicious, and have the added advantage of providing a respectability uniquely associated with being registered in the UK It described the UK’s defence mechanisms as “woefully inadequate” with just six staff in Companies House policing 4m companies. Trust and service company providers had a poor record of identifying and reporting money laundering with only 77 of the 400,000 suspicious activity reports filed last year coming from this sector.

FINANCIALLY SPEAKING Financial Literacy 101 presented by Bank of Saint Lucia

SMEs & CONVENIENCE BANKING SERVICES The month of November is Business Month in Saint Lucia as declared by the Department of Commerce, International Trade, Investment, Enterprise Development and Consumer Affairs. The main objective is to support efforts at improving the commercial landscape of Saint Lucia and increasing capacity within the Small and Medium Enterprise (SME) sector.

The theme for 2017 is “Promoting an Entrepreneurial Culture –Innovation & Creativity.”

Over 80% of Saint Lucian businesses are classified as SMEs, a statistical testament to the critical role that these businesses play in the economy.

SMEs are a major source of employment, vital to the alleviation of poverty as well as the social and economic stability of our island. They span a diverse range of sectors such as hospitality, cosmetology, construction, transportation, manufacturing and agriculture, to name a few.

Entrepreneurs will testify that SME businesses have their own unique needs that require specifically tailored solutions. A number of banks and financial institutions provide exclusive SME banking services which typically include:

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Inquire about these services with your preferred financial institution and discuss the many benefits to your SME. The ability to manage your business on the go, simply makes sense. Convenience Banking Services are designed to be functional and fit seamlessly into the daily routine - to save customers time and money. As technology continues to evolve, new products and services will emerge to create even greater added value for SME customers.

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8

THE STAR BUSINESSWEEK

NOVEMBER 18, 2017

WWW.STLUCIASTAR.COM

MAKING

MOVES

HUSBAND AND WIFE DUO TAKE THE LEAD IN AUTO MECHANICS INDUSTRY

H

BY KAYRA WILLIAMS, STAR BUSINESSWEEK CORRESPONDENT

ilron Mauricette was once just a young boy who was passionate about cars. He had no way of knowing then that his hobby would later help shape his entire livelihood. A lifetime of challenges and (mostly) successes later, including the establishment of a company boasting 18 fulltime staff and four contract workers, he’s found himself as the Managing Director of Mauricette’s Auto Repairs alongside his wife, Diane. What he describes as a life-changing decision to commit himself fully to his business has paid off in leaps, and there’s simply no turning back for this inspirational duo.

TELL US ABOUT YOUR EDUCATIONAL AND PROFESSIONAL BEGINNINGS. HILRON: I attended the Morne Technical

College which is now known as the Sir Arthur Lewis Community College (SALCC). When I graduated from there I started working in the auto mechanics field. I worked for three years as an apprentice auto body repair mechanic at a government-run business, and that’s where it all started. The place closed down, then reopened and rehired me. By then I didn’t see much potential there, so I moved on and started working for myself.

DESCRIBE THE PROCESS OF BUILDING YOUR BUSINESS FROM THE GROUND UP. HILRON: It started with a passion I had for

working with cars. I didn’t really intend to start a business. It grew year by year and eventually got very popular. There wasn’t a garage in Saint Lucia that I found was fit enough for me to learn, and to move up to the level that I wanted to be, so I had to take it into my own hands.

may have something to do with the technological age that we live in. I advertise for young school leavers who are at a dead end and don’t know what to do next. When they come here they don’t even last. You have them here, trying to get them to learn, and the discipline in them, punctuality - they don’t even start with that. You do not need to be highly skilled to be at work early or to come to work every day. If the skill is not there, or you are a slow learner . . . we can understand the slow learner but coming to work, and coming on-time, that’s what we really look for and don’t often get.

WHAT HAS KEPT YOU MOVING FORWARD, DESPITE THE HURDLES? HILRON: It took ten years from the moment I

decided to get serious with my business to really get the wheels in motion. As much as I am not a church-going person, I still believe in God. When I look at all the years, I think God has been good to me. As much as there have been obstacles, I now tell myself there is always a silver lining.

DESCRIBE THE SERVICE OPTIONS OFFERED BY MAURICETTE’S AUTO REPAIRS. HILRON: We specialize mostly in auto body

repairs, whether it’s an accident or you have a vehicle with wear and tear: the paint has gotten dull and you want to restore it, through buffering, or repainting; we offer those services. We also offer can rental services which is quite a plus for the customers. If their vehicle is being repaired, they can get a replacement vehicle for a small price. We also offer wrecking services, which helps us move damaged vehicles around.

HOW DO YOU STAY ON TOP OF TECHNOLOGICAL ADVANCES? HILRON: When I expanded the shop, I brought

a lot of the new technology. I had gone to a few places like Holland and Brazil where I visited The husband and wife team behind Mauricette’s Auto Repair Inc. Saint Lucia: garages with the most modernized technology Administrative Manager Diane Mauricette (left) and Managing Director Hilron Mauricette for that kind of work. I’m always looking for tools that will make the workshop even better. I sometimes you have to create a reputation as a recently ordered some later model analysers, which can help us analyse the electrical parts of sole proprietor for the banks to be able to lend you money, especially when you start to look at the cars, because that is something that has changed over the years. When I started we didn’t the quantity of cash you might want to borrow. When you start off as a self-employed person, really have that many electronics in the vehicles. Now, when we do bodywork, we sometimes it’s much harder to get financing from the bank. I remember the first property I purchased; I have to interfere with these electrical parts and we need the analysers to help us. put together everything the bank asked me for: deposit, contract letters, project proposal . . . everything. They still turned me down. I tried other banks and got the same thing. I was forced to wait a few more years until I had built more collateral, and then it was approved. I was quite HOW DOES THE HUSBAND AND WIFE DYNAMIC determined, so it paid off.

COME TOGETHER IN THE WORKPLACE? HILRON: So far it’s been going well. She does the administrative part and I do the technical stuff. I’ve learned that when you have a business, you can’t necessarily be a manager and WHAT CHALLENGES DO YOU FACE AS A BUSINESS OWNER? a technician at the same time. Sometimes you have to get someone to manage. I prefer the HILRON: Labour. Getting skilled people is quite a big challenge. When I look at myself 20 technical part. All in all we make a good team. The only thing now is getting someone to years ago, if I could get some people who were like me, it would have been better. I had to end up continue the legacy. I have two boys. I’m waiting for the last boy, to see if he will go in that training a lot of my workers myself and, when they get well trained, it’s a difficult thing to keep direction. them. You always find yourself starting the training process all over again, which prevents the business from growing in some ways. Some of them are still here with me; most of them have moved on. Some of them have become competitors. My wife joined me just after I expanded.

HOW WOULD YOU DESCRIBE THE EASE OF She’s helped a lot. I wish I had other help that would give me some good consultation to do DOING BUSINESS IN SAINT LUCIA? better still. I’d like to see this business operate without me being there. It’s about getting the HILRON: I think it’s easy. When it came to registering and starting off it wasn’t a right people to play the part they should play. problem. I started off as a sole proprietor and then I formed a company because there were people who were interested in investing in the company but that never really happened.

In terms of the day to day, I think it’s good; I don’t have any problems. We’re used to WHY DO YOU THINK THERE IS A LACK OF the process already. The only time we have problems is when it comes to clearing parts PASSIONATE AND HARD-WORKING JOB APPLICANTS? through customs when Christmas comes around and barrels take over. I don’t know for HILRON: The way I see it, the generation now is nothing like it used to be when I was growing other types of businesses but, for us it’s okay. up. The determination we had, the technical drive . . . I’m not seeing it in the generation now. It

HOW DID YOU SECURE START-UP FINANCING? HILRON: It was difficult. I realize now that

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