What are the definitions of ‘Money Laundering’, and ‘Tax Haven’ because they seem to come to mind given section b) and c) of the Account Liberalization initiative the ruling Democratic Labour Party has in its manifesto.
b) Residents and Non-Residents will be able to hold bank accounts in US Dollars, Euros, Canadian dollars and Sterling in unrestricted amounts provided these are not funded from Barbados dollar sources. The holding of different currencies will eventually help to diversity the financial services industry.
c) A 5% rate of income tax will be applied to interest earned on these balance in order to encourage their repatriation from foreign banks where they remain undeclared. These deposits will be subject to existing foreign currency reserve requirements.
We have in place a declaration policy governing local transactions which state all deposits of and exceeding $10,000 BARBADOS dollars the source of which must be declared. However this is saying undeclared money in non Barbados dollars will be subjected to a 5% income tax on the INTEREST not the money.
So if i were a drug lord and wanted to hide 30million Sterling for example i could send it down here and only be taxed on the interest the money earns. Don’t forget the term in b) “in unrestricted amounts”.
At any rate, I MAY be wrong but we’ll see when the World Bank and the IMF get wind of this.