International Banks P - PwC · PWC BARBADOS INTERNATIONAL BANKS A guide for business executives...

PWC

BARBADOS INTERNATIONAL BANKSA guide for business executives involved in International Banking

PricewaterhouseCoopers (www.pwc.com) is the largest professional service firm in theworld. We provide industry-focused assurance, tax, advisory and corporate servicesfor private and public clients, helping them to build value, manage risk and improveperformance.

Across the Caribbean, the PricewaterhouseCoopers network provides a fully integratedrange of professional services to local, regional and international clients from officeslocated in Antigua, Aruba, the Bahamas, Barbados, the British Virgin Islands, theCayman Islands, Curacao, Grenada, Jamaica, the Dominican Republic, Puerto Rico,St. Lucia, St. Maarten, Trinidad & Tobago, the Turks & Caicos Islands and the US Virgin Islands.

pwc 1BARBADOS INTERNATIONAL BANKS

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

PricewaterhouseCoopers in Barbados and the East Caribbean . . . . . .3

Why Barbados? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Establishing an International Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Start-up and ongoing operational costs . . . . . . . . . . . . . . . . . . . . . . . . .7

THE ISLAND OF BARBADOS

n Integrity and Professionalism . . . . . . . . . . . . . . . . . . . . . . . .9

n Geography, Climate and Population . . . . . . . . . . . . . . . . . .10

n History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

n Politics, Government and Judiciary . . . . . . . . . . . . . . . . . .13

n Economy, Trade and Industries . . . . . . . . . . . . . . . . . . . . . .14

n Money, Banking and Finance . . . . . . . . . . . . . . . . . . . . . . . 16

n Transport and Communication . . . . . . . . . . . . . . . . . . . . . . 17

n Infrastructure and Social Environment . . . . . . . . . . . . . . . 18

Appendices

I. Key Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

pwc BARBADOS INTERNATIONAL BANKS2

Introduction

With a long history of political and economic stability and commitmentto free enterprise, Barbados has developed into a major domicile forinternational business within the Eastern Caribbean.

This guide has been prepared by PricewaterhouseCoopers East Caribbean. It provides

background information to help business executives evaluate the advantages of

establishing an International Bank in Barbados.

Executives who are already planning to establish an International Bank here, or who wish

more detailed information on the process or about specific issues, are urged to contact

one of the following partners with responsibilities for international banking: Wayne Fields,

Marcus Hatch, Charles Tibbits, Gloria Eduardo or Ashley Clarke.

Contact information:

PricewaterhouseCoopersThe Financial Services CentreBishop’s Court HillP.O. Box 111St. MichaelBarbados, W.I.

E-mail: first name.last [email protected]

Tel: (246) 436-7000 Fax: (246) 436-1275

PricewaterhouseCoopers in Barbados and the East Caribbean

Through its legacy firms, PricewaterhouseCoopers has roots inBarbados that go back to the 1860s. Officially known asPricewaterhouseCoopers East Caribbean, the partnership isheadquartered in Barbados with practices in Antigua, St. Luciaand Grenada.

Through its Corporate Services Division, which is managed by AbacusManagement Services Ltd., the firm provides a complete range of services toforeign investors seeking to establish an International Bank in Barbados.

These include:

n Arranging incorporations, registration of external companies andcompany liquidations.

n Preparing the application for the international banking licence andattending discussions with the Central Bank of Barbados for thegranting of the licence.

n Providing a registered office and a company secretary, andnominating local directors.

n Maintaining statutory records, acting as a company registrar anddividend payment agent.

n Fling statutory returns and generally keeping the company in goodstanding.



Why Barbados?

Already renowned as one of the premier holiday destinations inthe Caribbean, and recognized by the United Nations as amongthe top developing nations in the world, Barbados also enjoys awell deserved reputation for integrity as an international businesscentre.

Over the past 30 years, successive governments have painstakingly built a highlyattractive environment for foreign investment and international business. Inaddition to offering attractive tax concessions and incentives, the island hasestablished a network of tax treaties with several countries including the USA,Canada, The UK, Switzerland and China.

Indeed, Barbados has continually enacted – and refined – legislation that makesthe country a highly respected domicile not only for International Banks but alsofor:

n International Business Companies

n Exempt Insurance Companies

n Qualifying Insurance Companies

n International Societies with Restricted Liability

n International Trusts

n Mutual Funds

Barbados has excellent international telecommunications links and is easilyaccessible by frequent scheduled flights from the United States, Canada, Britainand Europe. In addition, the island is home to a well-educated and skilledpopulation and enjoys a well-developed infrastructure and a sophisticated level ofservices.

Underlying legislation for International Banks

A company may be licensed as an International Bank in Barbados under theInternational Financial Services Act, 2002. Activities of International Banks areregulated by the Central Bank of Barbados.

Key Incentives

Here are some of the key incentives and requirements that apply to anInternational Bank:

n Tax on income on a sliding scale, from a maximum of 2.5% to aminimum of 1%.

n A tax credit in respect of taxes paid outside of Barbados, but onlyinsofar as it reduces the tax payable in Barbados to a minimum of 1%.

n Exemption from withholding taxes on dividends, payments of interestor fees.

n No capital gains tax or estate duty.


n Freedom from exchange control regulations.

n Books and records may be kept in a foreign currency.

n Statutory confidentiality provisions for customers of the bank.

n Provisions for inward and outward re-domiciliation.

n Access to the country’s tax treaty network.

n Income tax concessions for specially qualified employees.

n Convention expenses allowed by US tax authorities.

n Certain trusts established with an international bank as trusteeare exempt from Barbados income tax.

Restrictions/Requirementsn Audited financial statements must be filed with the Central

Bank of Barbados on an annual basis.

n Bearer shares are not permitted.

Principal internationaltax planningconsiderations

n Canada – As a result ofBarbados being a “designatedtreaty country”, a qualifyingforeign bank, which employsmore than five employees fulltime in the active conduct of itsbusiness, may remit dividends toCanada out of its exemptsurplus. These dividends areexcluded from the taxation of aCanadian corporate investor.The regulations imposed underthe International FinancialServices Act, 2002 are sufficientto satisfy the Canada RevenueAgency that the bank isregulated for purposes ofexempt surplus rules. A bankmay also be used to financeintra-group activities where thereis a reduced withholding tax oninterest payments only toqualified foreign banks.

n Latin America – Although themajor economies in LatinAmerica have institutedlegislation inhibiting payments tolow/no-tax jurisdictions, planningopportunities continue to existthat enable a multinationalcorporation to finance itsexpansions/operations in LatinAmerica in an efficient mannerusing a Barbados internationalbank.


Establishing an International Bank

An International Bank is defined as a business that receives funds through:

n The acceptance of foreign money deposits payable upon demand orafter a fixed period or after notice.

n The sale or placement of foreign bonds, foreign certificates, foreignnotes, or other foreign debt obligations or foreign securities.

n Any other similar activity involving foreign money or foreign securities.

These funds can be used, either in whole or in part, for:

n The activities of the licensee carrying on the above businesses, forthe account of, or at the risk of, that licensee.

n Loans, advances and investments.

n The purchase or placement of foreign bonds, foreign certificates,notes or other foreign debt obligations or other foreign securities.

n Any other similar activity involving foreign money or foreign securities.

In terms of trust activities, it includes the acceptance in trust from personsoutside of Barbados, or from prescribed persons, of:

n Money in foreign currencies or in foreign securities or both.

n Foreign personal or movable property.

n Real or immovable property located outside Barbados.

Any person or business seeking to establish an International Bank in Barbadosmust first obtain the approval of the Central Bank of Barbados beforeincorporation. Once this approval has been obtaind, the applicant may proceedto incorporate under the Companies Act Cap. 308 (See Appendix I).

In order to qualify for an international banking licence, a company must:

n Be a qualified foreign bank or be incorporated in Barbados.

n Restrict its activities to international banking from within Barbados.

n Have at least one director who is a resident citizen of Barbados.

n Have paid up capital of at least US$2,000,000 if it accepts third-party deposits, or US$500,000 if it does not accept third-partydeposits.

n Maintain a reserve fund to which 25% of net profits before dividendsare transferred annually until the reserve fund equals the paid upcapital.

n Pay an initial registration/licence fee of US$12,500.

Thorough investigations of shareholders, directors and officers of a company arecarried out before an international banking licence is granted.


Start-up and ongoing operational costs

Estimated start-up costs for an International Bank (in US dollars):Government Fees

Incorporation $ 390

Licence 12,500

Professional Fees (minimum)

Central Bank application 19,700

Incorporation (inclusive of legal fees) 5,300

Corporate retainer (first year) 2,500

Disbursements (estimate) 510

Audit Fee – opening balance sheet 2,500

$ 30, 510

Independent local resident director – if required

(Minimum) $ 2,500

Estimated recurring costs are as follows (in US dollars):Preparing and filing annual returns $ 500

and licence renewal

Government fee for annual returns 50

Government fee for licence renewal 250

Retainer fee 12,500

$ 15,500

Independent local resident director – if required

(Minimum) $ 2,500

The Island of BarbadosAn ideal environment for international business


Barbados has tax treaties with the following countries:

NOTE: To review the entire International Financial Services Act, 2002and other laws pertaining to international business, please visit the websiteof the Ministry of Industry and International Business at:www.barbadosbusiness.gov.bb

Integrity and Professionalism

For the past 30 years, successive governments in Barbados havediligently constructed a framework of legislation designed toencourage foreign investment and establish the island as a leadinginternational business centre in the Caribbean.

Today, Barbados is a highly respecteddomicile for such entities asInternational Insurance Companies,International Business Companies,International Banks, Societies WithRestricted Liability, InternationalTrusts, and Mutual Funds.

Throughout the process of enactingand refining the laws governinginternational business, the countryhas rigorously safeguarded itsreputation for integrity, respondingquickly to such international concernsas money laundering and lack oftransparency.

Indeed, while offering a low-taxenvironment to internationalbusinesses, Barbados has, from thevery beginning, chosen to establish ahigh level of transparency and acooperative approach to sharinginformation sharing with taxauthorities in other countries.

Professional Services

The island provides an excellent rangeof professional services – and highlyskilled professionals – to meet the needsof the international business sector. The legal profession is well establishedin Barbados, with many law firms thatspecialise in corporate and internationalbusiness law.

All of the major international accountingfirms are represented through localpartnerships, offering assurance, tax,advisory and corporate services. Thereare several independent managementcompanies on the island that alreadyhandle the business of scores ofInternational Insurance Companies.

n The United Statesn Canadan The United Kingdomn Chinan Cuban Finlandn Norway

n Swedenn Switzerlandn Venezuelan The territories that

comprise the CARICOM Single Market andEconomy


Geography

Barbados is the most easterly ofthe Caribbean Islands. Essentially a “coral” island, with an area of 166 square miles, it is situatedapproximately 1600 milessoutheast of Miami, Florida. The island is easily accessible byfrequent scheduled flights fromMiami (3.5 hours), New York City(4.5 hours), Toronto (5.5 hours),and London or Brussels (8 hours).

Climate

Barbados has a tropical climateand relatively high averagetemperatures and humidity.However, these conditions aremoderated by the cooling effect of strong North East trade windsthat blow over the island.

Temperatures during the day rarely exceed 30C (86F). During November though March,conditions tend to be a fewdegrees cooler, while the months of July through October aregenerally more humid and wet.

Population

The resident population of theisland is approximately 270,000.Approximately 94% of Barbadiansare of African descent, with theremainder being of Europeandescent and other nationalities.

When segmented by age, 24% of the population is under 15, with 64% between the ages of 15and 64. The remaining 12% areover 65.

Geography, Climate and Population

Top: the island’s East Coast is noted for its rugged beauty and Atlantic swells.Bottom: The West Coast is famous for its crystal-clear waters, fine sandbeaches and luxury accommodation.


Barbados is the most easterly of the Caribbean islands, situated about 1600 miles southeast of Miami, Florida.


The Europeans knew about theexistence of Barbados since the16th century. However, the islandwas not settled until 1627 when agroup of Englishmen established aformal colony and planted tobaccoand cotton for export to England.After 1645, these crops werereplaced by sugar cane, whichfostered the development of theplantation system.

From early on, Barbados enjoyedtrading relationships and other ties with the United States and later Canada. In 1670, Barbadianimmigrants helped to found theState of South Carolina and itscapital city of Charleston. What is more, Barbados bears thedistinction of being the only countryoutside of the United States evervisited by George Washington whocame to the island in 1752.

Since the abolition of slavery in1834, the descendants of Africanslaves who were brought toBarbados to underpin theplantation system have developedinto a thriving and industriouspopulation.

In 1966, after almost 350 years ofunbroken British colonial status,Barbados became a fullyindependent sovereign nation. The island is English-speaking andhas remained a member of theBritish Commonwealth.

History

Archaeological evidence shows that the Arawaks, apeople indigenous to the Orinoco River area of Venezuela,inhabited Barbados from around 600BC. They were laterdriven out by the Caribs, who also migrated north from thesame area but who did not settle on the island.

Carved by aBritish armyofficer stationedon the island, thisstone lion is areminder ofBarbados’colonial past.

The Corp ofDrums of theBarbadosDefence Forcewear uniformsthat date back toVictorian times.


Politics

An independent country sinceNovember 30, 1966, Barbados isnoted for its high level of political,economic and social stability, aswell as for the integrity of itsinstitutions. The country operatesas a well developed democracywith open elections held every fiveyears. There are two main politicalparties, the Barbados Labour Partyand the Democratic Labour Party.Elections are hotly contested, butare notably free of violence andcorruption.

Government

Barbados enjoys a parliamentarystyle government, with a House ofRepresentatives and a Senate. The island’s first Parliament wasestablished in 1639, making it thesecond oldest in the WesternHemisphere.

The function and powers of theGovernment are vested in Cabinet,presided over by the PrimeMinister. Senators are appointed:12 by the Government, two by the official Opposition, andseven “independents” on therecommendation of the GovernorGeneral who is the Queen’srepresentative and Head of State.

Judiciary

The legal system of Barbados isbased on English Common Law asmodified by Statute to meet localrequirements. The members of thejudiciary, in performing their judicialacts, are completely independentof the executive and legislativefunctions of Government.

Politics, Government and Judiciary

Top: The Parliament Buildings in Bridgetown – home to the second oldestparliament in the Western Hemisphere.

Bottom: Mounted police in full ceremonial uniform.


In 2003, the country’s GrossDomestic Product (excluding netindirect taxes) was approximatelyBDS$4.4 billion. That same year,exports amounted to BDS$500million, while imports totalledBDS$2.39 billion. Domestic exportsconsist mainly of sugar and its by-products rum and molasses,chemicals, clothing, furniture,electrical components and cement.

Consumer goods, mostly food andbeverages, account for the majorityof the island’s imports – BDS$915million in 2003. That same year,intermediate goods and capitalgoods such as machinery for use inagriculture and manufacturing,accounted for BDS$2.26 billion ofthe island’s import bill.

Based primarily on sugar until the1970s, the island’s economy nowhas four key productive industries:tourism, agriculture, manufacturingand international business.

Tourism

Tourism continues to play a key rolein the economy and has a positive“spin-off” impact on virtually all otherbusiness sectors. Currently, thisindustry accounts for about 11% ofthe employed labour force and is thecountry’s principal foreign exchangeearner. For example, in 2003, thegross annual earnings from tourismwere approximately BDS$1.46billion. The island attractsapproximately one million visitorseach year, with an almost equal splitbetween long stay visitors and cruiseship passengers.

Economy, Trade and Industries

Barbados embodies an open, small, free enterprise economy. A Value Added Tax on consumption, implemented in 1997, hasenabled the country to reduce its dependence on import tariffsand duties as a source of revenue, and also to improvecompliance with WTO rules.

Top: St. Lawrence Gap, on the vibrant South Coast – heart of the island’snightlife.

Bottom: This modern distillery produces fine rums for which Barbados isfamous.


intensive products that use moderntechnology. Electronics, medicalequipment and informationprocessing are areas of particularinterest. In recent years, the islandhas been attracting a growingnumber of call centres.

Agriculture

While the production of sugar is stillimportant to the island’s ability toearn foreign exchange, theGovernment’s policy in agriculturehas been to reduce dependence

Manufacturing

The manufacturing sector inBarbados accounts forapproximately 7% of the island’semployed labour force and includesfood and beverages (especiallysugar and rum), electronics,hardwood furniture, garments andchemicals.

The country continues to welcomeinvestment in the manufacturingsector, especially for the productionof higher value-added, skills-

Barbados Gross Domestic Product (2003)

on this commodity and toencourage diversification, especiallyin vegetables, poultry, livestock and fishing. The island is virtuallyself-sufficient in pork, poultry, freshmilk and vegetables.

International BusinessThis sector, which has steadilydeveloped since 1977, nowcontributes significantly to theisland’s foreign exchange earningsand provides employment forapproximately 3,000 Barbadians.Some unofficial estimates put thesector’s contribution to thecountry’s GDP at about 7.5%.

Primary Resources

Other than substantial limestonedeposits that are mined and usedto produce cement and other lime-based products, Barbados doesnot have an abundance of naturalresources. However, the countrydoes have some oil and natural gasdeposits that have been accessedto reduce dependence on outsidesources. In 2003, approximately22.4 million cubic metres of naturalgas were sold, and 371,000 barrelsof crude oil produced. Local crudeoil production meets about half thedomestic requirements.

Local crude oil production meets about half the islands domestic requirements.


Exchange control

Barbados has exchange controlregulations, although these are beingloosened over time. However,international businesses, includingExempt Insurance and QualifyingInsurance Companies, are exemptfrom these exchange regulations.

The Central Bank ofBarbados

Barbados has had a Central Banksince 1973. The main role of theCentral Bank is to act as banker,fiscal agent and financial advisor tothe Government, and to monitorand regulate the activities ofcommercial banks and otherfinancial institutions. It also has aduty to promote monetary policiesand exchange policies thatencourage economic growth.

Commercial Banks andFinance Companies

The banking system in Barbados iswell established, and the island hasa competitive commercial bankingsector. The commercial bankscurrently operating here include:First Caribbean International Bank(a regional combination of BarclaysBank and CIBC Caribbean), RoyalBank of Canada, Bank of NovaScotia, Barbados National Bank(majority owned by Republic Bankof Trinidad), Bank of Butterfield &Sons, and Caribbean CommercialBank (wholly owned by Royal Bankof Trinidad & Tobago).

Money, Banking and Finance

Barbados has been a member of the InternationalMonetary Fund since 1973. The Barbados dollar isbacked by gold and foreign assets, which havepromoted stability and confidence in the currency.Since 1975 the country’s dollar has been fixed atBDS$2.00 to US$1.00.

There are also several financecompanies operating in Barbados.Apart from collecting deposits,these companies complement the commercial banks in financingthe purchase of constructionequipment, motor vehicles andother consumer durable goods.

Domestic Insurance

Barbados has a highly developeddomestic insurance industry.Placement of insurance throughbrokers is commonplace.

Top: The Tom Adams Financial Centre, named after the island’s second primeminister, is home to the Central Bank of Barbados.

Bottom: This elegant building is the head office of FirstCaribbean InternationalBank.


Airport

Voted the “Best Caribbean Airport”at the World Travel Awards for 2003,the Grantley Adams InternationalAirport is located in the south of theisland, about 30 minutes from thecapital of Bridgetown. The airport isserviced by major internationalairlines, including American Airlines,American Eagle, Continental, USAirways, Air Canada, Air Jamaica,British Airways, BWIA and VirginAtlantic. These airlines providedirect links to major cities such asMiami, New York, Newark,Philadelphia, San Juan, Washington,Toronto and London. The GAIA is amajor “hub” for several regionalairlines that connect the EasternCaribbean with frequent flights daily.

Port facilities

Located on the edge of the City, theBridgetown Port is one of the mostmodern in the Caribbean. The portprovides container handling andberthing facilities for ocean-goingfreighters and passenger shipsincluding the world’s major luxuryliners, several of which now use theBridgetown Port as their “homeport”for Caribbean cruising in the SouthCaribbean.

Postal, Courier andTelecommunicationServices

The Post Office Department providesspeedy and reliable domestic andinternational mail services on a dailybasis to all parts of the island. Thereare 17 post offices that are openfrom 8:00 a.m. until 3:00 p.m.,Monday through Friday. Expresspost is available to certain countriesthrough the Post Office Department,and there are a number of privatecouriers including Federal Express,DHL and UPS.

Barbados has excellenttelecommunications links, withdirect-dial available to all worlddestinations. Businesses areoffered the latest in communicationstechnology, and many use theInternet to provide information ontheir products and services.Currently, there are threetelecommunications companies onthe island providing cellular phonesservices: including Cable & Wireless,Digicel, and AT&T Wireless.

Transport and Communication

News Media

There are two English languagenewspapers, a television stationand several radio stations thatprovide local, regional andinternational news. Internationaleditions of major foreignnewspapers (from North Americaand the UK) are also available on adaily basis. Also, two satellite linkedcable television services providesubscribers with access to a widerange of international programming.

Top: Barbados enjoys excellent telecommunications links with the rest of theworld.

Bottom: The island is also served by a modern deep water port.


Infrastructure and Social Environment

Barbados is one of the most highly developed small countries in the world. The United Nations Development Programme (UNDP) has ranked Barbados as No.1on its Human Development Index in the Caribbean and Latin America. In itsdevelopment, Barbados is also outperforming all of Africa, and all of Asia with theexception of Hong Kong, Singapore, Japan and South Korea.

The country’s high level ofdevelopment is reflected in itsinfrastructure and socialenvironment.

Health Services

The Queen Elizabeth Hospital,situated on the outskirts ofBridgetown, accommodates 600patients in private and generalwards. There is also the BayviewHospital, which is privately ownedand accommodates 24 patients.There are also several well-equipped private clinics, healthcentres and nursing homes. The psychiatric hospital enjoys agood reputation.

Barbados enjoys a high standard ofmedicine and health services overall.Dental and optical services are readilyavailable, and the Medical Registerlists specialists trained in the UnitedKingdom, Canada and the UnitedStates.

Education

Barbados has an exceptionallygood educational system thatcomprises free primary, secondaryand tertiary levels of education.The literacy rate on the island isapproximately 97%.

One of the campuses of theUniversity of the West Indies issituated in Barbados. Theuniversity’s Department ofManagement Studies together --with the affiliated Centre for

Top: The Sherbourne Conference Centre – one of the most modern facilitiesof its kind in the Eastern Caribbean.

Bottom: Student residences on the Cave Hill campus of the University of theWest Indies.


Management Development providemany of the graduates for thecountry’s domestic corporatesector, professional services firms,and international business sector.

Barbados also has a communitycollege, a teachers’ training college,a theological college, a hospitalityinstitute and a polytechnic.

Housing

Barbados has well developedresidential areas, and high qualityhousing for executives is availablefor sale or rent in many locationsacross the island.

Water

Barbados enjoys crystal cleardrinking water throughout theisland. Its primary source isunderground springs, filteredthrough coral, and these aresupplemented by the output from a newly completed desalinationplant.

Electricity

The Barbados Light & PowerCompany provided a highly reliableelectricity service throughout theisland. Domestic current willoperate appliances designed for110 volts AC, 50-cycle supply. A 220-volt supply is also availableto industrial and domestic users.

Roads

Barbados is criss-crossed by anextensive network of paved roads,including a trans-island highwaythat links all of the maintransportation arteries. Driving ison the left-hand side of the road.

Office Space

Good quality, air-conditioned officespace is available in Bridgetown orin several purpose-built officecomplexes on the outskirts of thecity. Lease arrangements can benegotiated at reasonable rates.

Top: High quality executive housing is available for sale or rent in many partsof the island.

Bottom: Good quality, modern office space is available in several purpose-built complexes on the outskirts of the city.


Hotel Accommodation

In keeping with its reputation as ahigh-end tourism destination,Barbados has well-run hotels ofinternational standards. Theseinclude a newly reconstructedHilton, The Fairmont Hotels’ RoyalPavilion, and Sandy Lane Resort,recognized as one of the finestfacilities of its kind in the world.Other smaller but excellent qualityhotels include Coral Reef, ColonyClub, Glitter Bay Resort, CobblersCove and The Crane PrivateResidence Resort. In all,accommodation in Barbados,including luxury hotels, villas,guesthouses, and rental apartments,totals just over 8,000 rooms.

Many of the larger hotels offerconference facilities, as does the

Sherbourne Conference Centre, apurpose-built facility on the outskirtsof Bridgetown.

Restaurants and Nightclubs

Barbados has dozens ofrestaurants, many of which areworld-class in standard. In additionto these restaurants, there areseveral excellent private firms thatcater for receptions. The island hasan active nightlife, particularly onweekends, and there severalnightclubs offering live bands as wellthe latest in international music.

Sports and RecreationalActivities

Barbadians are a sports-lovingpeople, and while cricket remains

the national “passion, sports ofevery kind are played on the island,including basketball, volleyball, fieldhockey, soccer, tennis, squash andgolf. Horse racing and polo are alsowell established on the island andamong the leading spectator sports.A national stadium and agymnasium are used throughout theyear to host field athletics, cyclingand other well attended sportingevents.

Barbados has gained increasingprofile in recent years as a golfingdestination. There are five golfcourses on the island: two 18-holecourses at Sandy Lane, which havebeen recently designed by TomFazio; the luxurious 18-hole courseat Royal Westmoreland, designedby Robert Trent Jones; the 18-hole

Horseracing is a well-established and popular sport on the island.


There are several world-class golfcourses on the island.

Polo has become increasinglypopular, and there are currently fourpolo fields on the island.

course at Southern Golf andCountry Club; and the 9-hole courseat Rockley Resort, which is theoldest course on the island.

The water and coral reefssurrounding Barbados are theisland’s greatest natural attraction.There are a number of traditionalwater sports activities includingsailing, surfing, deep-sea fishing,scuba diving and snorkelling.

Festivals

Barbados celebrates the nationalfestival of Crop Over during the

month of July. It is a festival ofmusic, art and dance, andexotically costumed Barbadianstake to the streets in thethousands during the final paradeknown as “Kadooment”.

In March, the Annual HoldersOpera Season offers the musicand theatre of local andinternational performers, andattracts visitors from around theworld.

Appendix - Key Legal Requirements

International Banks must incorporate in Barbados under The Companies Act,

Cap.308, which is modelled on the Canada Business Corporations Act.

Here are some of the key legal requirements under this and other legislation:

Company formation and registration of branchesIncorporation is achieved by filing Articles of Incorporation with the Registrar

of Companies and paying a fixed fee of US$390. A licence application is

submitted to the Central Bank of Barbados, and the initial licence fee of

US$12,500 is paid to the Accountant General of Barbados. Thereafter, this

licence fee of US$12,500 is an annual fee. A licensed bank may only carry on

business permitted under the International Financial Services Act, 2002.

International Banks are empowered to adopt pre-incorporation contracts.

Corporate mobility in and out of Barbados is allowed.

Tax returnsInternational Banks must file tax returns and financial statements in the same

manner as local companies. Those with year-ends prior to September 30th

must file by the following March 15, all others by the following June 15th.

Taxes must be prepaid.

CapitalA company need only have one shareholder. Shares have no nominal or par

value, and may not be issued until fully paid. A company may purchase and

cancel its own shares provided it is solvent. Companies may amalgamate and

mutual companies are allowed.

A company that intends to operate as an International Bank is required to have

a minimum paid up capital of US$2,000,000 if it accepts third-party deposits,

or US$500,000 if it does not accept third-party deposits.

ManagementAt least one director of an International Bank must be a resident citizen of

Barbados. A company need only have one director. Directors’ duties and

liabilities are expressly stated in The Companies Act. A unanimous

shareholders’ agreement may restrict the power of the directors. Minutes of all

meetings and resolutions of directors must be maintained at the registered

office in Barbados. Alternate directors are allowed.


Meetings and votesDirectors may conduct their business by unanimous written resolution, or meet

by telephone. An annual meeting of shareholders is required, at which

shareholders may be represented by proxies. Fundamental changes to the

company’s Articles require two-thirds majority. Minutes and resolutions of the

shareholders must be maintained at the registered office in Barbados.

Accounting and auditingInternational Banks are required to file audited financial statements with the

Central Bank within four months of the year-end, and also to make quarterly

financial returns.

Adequate accounting books and records must be maintained in Barbados, and

a qualified local auditor appointed if the gross assets or revenue of the IBC

exceed US$500,000. Accounting and auditing standards are prescribed by the

Institute of Chartered Accountants of Barbados.


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"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, eachof which is a separate and independent legal entity.

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