The Tax information Exchange Agreement (TIEA) signed between the governments of the Bahamas and the US in 2002 demonstrated the recognition by both countries that self-interest can be satisfied in an even-handed fashion. The Bahamas wanted to continue to offer its institutions and their clients unrestricted and confidential access to the US’ capital markets, and so, negotiated terms that provide the US with the greatest confidence in the self-regulation of the financial services sector in the Bahamas.
The agreement with the US took place in the midst of Organisation for Economic Co-operation and Development (OECD) initiatives that sought compliance action from the Bahamas and many other countries on tax-information exchange. It was also a period during which there was an international push for greater transparency and regulatory supervision under the auspices of the Financial Action Taskforce’s (FATF’s) anti-money laundering and Financial Stability Forum (FSF) initiatives.
