Tuesday, Jul 14, 2020
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OECD clarifies CBI/RBI high risk designation

The Organisation for Economic Co-operation and Development (OECD) has reiterated that the sole objective of the “high risk” designation it placed on 21 countries, including The Bahamas, with residency by investment (RBI) and citizenship by investment (CBI) schemes is to circumvent the misuse of those schemes.

The financial sector was in an uproar earlier this week following the release of an OECD report which analyzed over 100 CBI/RBI schemes offered by jurisdictions committed to the Common Reporting Standard (an information standard for the automatic exchange of information regarding bank accounts on a global level), identifying those schemes that potentially pose a high risk to the integrity of the Common Reporting Standard.

“The OECD would like to reiterate that the sole objective of the high-risk RBI/CBI schemes included in this guidance is to provide financial institutions with the right tools to identify account holders that may misuse RBI/CBI schemes to circumvent the Common Reporting Standard (CRS) and carry out enhanced CRS due diligence procedures, where appropriate,” the OECD said in an update published on Wednesday.

“This guidance was issued as part of the OECD’s ongoing efforts to address any risks to the integrity of the CRS, including those arising from the possible misuse of RBI/CBI schemes.”

As a result of the OECD’s report, British newspaper The Guardian published a story claiming that the OECD had blacklisted 21 countries whose schemes potentially pose a high risk to the integrity of the CRS. The Ministry of Finance called the report “false and misleading”.

 The OECD indicated that more detailed information from participating jurisdictions would reduce the high risk.

“Since the release of the guidance, Monaco has provided additional information with respect to its residence and migration requirements, confirming that information on relevant applicants is exchanged with all existing jurisdictions of residence,” the OECD noted.

“On this basis, the residence and immigration requirements do not give rise to particular risks to the integrity of the CRS and the guidance will be updated accordingly.”

Business Reporter at The Nassau Guardian
Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas.
Paige started working as a business reporter in August 2016.
Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News
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