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32The Bahamas Investortrust industries are very well known."However, competing with such well-established service providers in theirspecialist areas may prove to beunrealistic and Field goes on to suggestthat The Bahamas needs to play to itsparticular strengths to win a share. "TheBahamas' strengths in the maritimearena and residential possibilities, Iwould think, would be of great interestto an Asian investor; particularly givenyour proximity to the US and Canada."Moreover, a continued desire byHNWIs in the Asia-Pacific region todiversify portfolio allocation can onlyserve to benefit The Bahamas, asinvestors travel more and look to awider array of ventures in which to puttheir money. "More A-Pac countries arespending more dollar for dollar abroadand they are also investing moreoverseas," says Jestin. "In the next threeto five years I think you will see moreinvestors from emerging economieslooking for alternatives to treasuries,bills and bonds-increasing assetdiversification with investment in realestate, indirect and direct participationin tourism projects."Promotional toursIt matters not how good your productsand services are, or the potential forinvestment that you possess, if no onehas heard of you. "The problem is thatThe Bahamas is all but unknown inAsia," says Field. "BVI, Cayman andthe Channel Islands are representedhere three or four times a year and oftenappear at conferences, such as theSociety of Trust and Estate Practitioners(STEP) in Hong Kong, Singapore andthe People's Republic of China. TheBahamas definitely needs to be far morevisible in Asia."Jestin echoes that sentiment: "It'sabout getting shelf space. You have toget your brand in front of people. AndThe Bahamas has a great brand."In an attempt to increase its visibility,The Bahamas was well-represented inAsia during the fall of last year, as theBahamas Financial Services Board(BFSB) took an executive delegation toevents in mainland China, Hong Kongand Singapore from the end of Octoberto the beginning of November.The strategic promotional tour startedin Hong Kong with breakfast and lunchpresentations, followed by attendance atthe China Offshore Summit in Shanghaiin October. The summit was designedto explain to China's top financialintermediaries how they can benefitfrom the unique asset management andcorporate product offerings available inthe world's international offshorefinancial centers. The last leg of the tourtook in the STEP Asia Conference 2011in Singapore. This type of promotional initiativehas to be the first step in a concertedand sustained marketing push if TheBahamas is going to gain any kind offoothold in the A-Pac region. Withpredicted economic activity in terms ofreal GDP growth of emerging Asianeconomies remaining between seven tonine per cent in coming years, it could"It's about getting shelf space. You have to get your brand in front of people. The Bahamas has a great brand."Figure 3: Real GDP Growth Rates, 2008-2010FEmerging AsiaaGrowth 2008-2009Growth 2009-2010FGrowth 2008-2009Growth 2009-2010FGrowth 2008-2009Growth 2009-2010F7.4%8.9%-0.9%6.6%-4.2%2.8%SouthChinaIndiaIndonesiaThailandTaiwanSingaporeKoreaHong KongAustraliaNew ZealandJapanNewly Industrialized AsiaaIndustrialized AsiaaaComposition of Emerging Asia, Newly Industrialized Asia and Industrialized Asia is as per International Monetary Fund definitionsSource: The Economic Intelligence Unit, June 2010Changefromprior year(%)9.68.69.95.16.87.86.04.55.62.53.20.78.51.48.02.30.25.92.25.62.41.32.92.92.8-2.3-1.9-2.0-2.8-0.6-0.6-5.2-1.210%5%0%-5%-10%200820092010FVisit us onlineWEALTH MANAGEMENT

The Bahamas Investor33FATCA stands forthe Foreign Account TaxCompliance Act. It colloquially refers to certainprovisions included in the Hiring Incentives toRestore Employment (HIRE) Act signed into lawon March 18, 2010 and effective January 1, 2013.It adds a new chapter to the Internal Revenue Code(Chapter 4) aimed at addressing perceived tax abuseby US persons through the use of offshore accounts. The new rules require foreign financialinstitutions (FFIs) to enter into an agreement withthe US Treasury and provide information oncertain US persons invested in accounts outside ofthe US and for certain non-financial foreign entities(NFFEs) to provide information about any"substantial" US owners. Non-participating FFIs or NFFEs that do notcomply are subject to 30 per cent withholding onall US source withholdable and "passthru"payments received.An FFI is any non-US entity that:. Accepts deposits in the ordinary course of abanking or similar business;. As a substantial portion of its business, holdsfinancial assets for the account of others; or. Is engaged (or holding itself out as beingengaged) primarily in the business of investing,reinvesting, or trading in securities, partnershipinterests, commodities, or any interest in suchsecurities, partnership interests, or commodities.FATCA requirementsFATCA requires a withholding agent and participatingFFIs to deduct and withhold 30 per cent on anywithholdable or "passthru" payment made to FFIs thatUS Foreign Account Tax Compliance Act due 2013 will have a far-reaching impactBy Lawrence LewisKnow yourFATCAWEALTH MANAGEMENT©ISTOCK/SEAN LOCKE