Bahamas biz registry suffers for lack of anonymity

[Khoder bin Hakkin]

      Anonymity Lifted, Fewer Companies Registering in the Bahamas
               By Samantha JosephAssociated Press Writer
                         Published: Nov 1, 2001
NASSAU, Bahamas (AP) - The number of international companies registering
in the Bahamas dropped steeply following tightened regulations that
ended anonymous ownership, the attorney general says.

Only 4,148 international business companies registered to do business
between January and September of this year, Attorney General Carl Bethel
said Wednesday. Some 14,500 registered in the same period last year.

Earlier this year, the Bahamas was removed from the Paris-based
Financial Action Task Force's blacklist of countries deemed
uncooperative in fighting money laundering. To get off the blacklist and
avoid any sanctions, the Bahamas passed nine laws to strengthen
regulations in the offshore sector.

One of the new measures eliminated anonymous ownership of international
business companies, so-called shell companies, by requiring the names of
two directors and the office address on the registration.

Any loss in business, however, was worth it to improve the reputation of
the Bahamas as an international financial center, Bethel said.

"There has been some falloff in this area," he said. "But we think, on
balance, the financial services sector is better off."

Still, there are some 45,000 international business companies that
renewed their licenses this year, Bethel said.

If the registrations had been at the same level as last year, the
Bahamas would have brought in another $1.5 million in incorporation
fees. Bethel said the drop would not have a dramatic effect on the
country's overall revenues, because offshore banking and investment
services are a more economically vital sector.

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