For the second time this year, The Bahamas has seen its ranking as a financial center slip on a globally recognized index - an industry participant saying the commentators, like sharks, smell blood in these waters.
The Bahamas fell to 72nd, down from its 67th place ranking in March's release of the Global Financial Centres Index (GFCI).   In March it had fallen from 64th on last year September's index.
Of the top ten offshore financial centres (OFCs), The Bahamas landed the number ten position.
Managing Director of Dominion Management Services Limited, Paul Moss, told Guardian Business yesterday its another sign that the international community perceives the jurisdiction as neither serious nor driven to defend the beleaguered industry.
"We don't demonstrate a commitment or belief in this industry.  That's what the commentators globally smell, like blood in the water.  And like sharks, they are coming at us, because they know we are injured and limping," Moss said.
"They sense that there is no commitment in this country to financial services.  No one protects it."
Moss said the evidence is visible in the way the country capitulates to external demands under black-listing threats, even if it means implementing measures which are constitutionally questionable.  The country does not 'fight' for what it believes in, he charged, adding that global players who would add Bahamian market share to their own know it.  He used losses The Bahamas has suffered in international insurance, international business company formation and administration, and is now suffering in the funds business as examples.
Moss charged that the industry is unimaginative, timid and too reactionary to make any serious inroads on better global perceptions.  To start, he proposed an aggressive thrust towards repositioning the jurisdiction as a low-tax, rather than no-tax jurisdiction for foreign corporations.
"It would demonstrate that we are serious about making sure that those who come to this country understand there will be transparency, and some taxes to pay," said Moss.
Moss said such a tax should be for a minimal amount, no more than about 5 percent, and could be built up incrementally over time to reach that point.  He proposed backing the income tax with tax treaties and agreements to maximize its benefit to the jurisdiction.
On the GFCI 10, OFC's overall saw their rankings fall.  The top ranked OFC was Jersey, at number 21 for global financial centers.  It rose two places in the ranks since March's release, while the balance of the top ten fell back.  The losses in rank varied from two places (Gibraltar) to 11 (Malta).
"Offshore centrers have suffered significant reputational damage in the past three years," read the report. "GFCI 10 shows that many are now recovering as respondents to the GFCI questionnaire recognize the contribution these centres can make to global finance."
The report listed Guernsey, the Isle of Man, Hamilton and the British Virgin Islands as examples of this.
London, New York, Hong Kong, and Singapore respectively secured the top four spots on GFCI 9 and 10.

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