25 January 2002

U.S., Bahamas Sign Agreement to Exchange Tax Information

U.S. Treasury Secretary Paul O'Neill and Bahamian Finance Minister William Allen signed an agreement January 25 on behalf of their respective countries that commits the United States and The Bahamas to sharing tax information with each other, in a cooperative effort to cut off funding to terrorist organizations.

The United States has recently concluded similar landmark tax-information exchange agreements with the Cayman Islands and Antigua & Barbuda. In his signing ceremony statement, O'Neill described The Bahamas as "a recognized leader in the Caribbean" and praised its government for moving quickly "to identify and freeze suspect accounts" in the wake of the September 11 terrorist attacks against New York and Washington.

"By signing this agreement, The Bahamas leaves no doubt that it should be counted among the financial centers of the world that are committed to upholding international standards" and that it "simply will not tolerate the abuse of [its] financial institutions for illicit purposes," O'Neill said.

Following is the text of O'Neill's statement at the signing ceremony:

U.S. Department Of The Treasury

Treasury Secretary O'Neill's Signing Ceremony Statement United States And The Bahamas Sign Agreement To Exchange Tax Information

Today Treasury Secretary Paul O'Neill signed a new agreement with the Commonwealth of The Bahamas that will allow for exchange of information on tax matters between the United States and The Bahamas. The agreement was signed by Treasury Secretary Paul O'Neill and Bahamian Finance Minister William Allen.

At the signing ceremony, Treasury Secretary Paul O'Neill delivered the following remarks:

"I would like to thank you all for being here today and to welcome our friends from The Bahamas, especially Finance Minister William Allen and the other members of his delegation who participated in the negotiation of this important agreement.

"The United States has long had a close relationship with The Bahamas, which is one of our nearest neighbors and a recognized leader in the Caribbean. I am happy to say that our relationship has grown significantly closer recently. In particular, I would like to extend my sincere gratitude to The Bahamas for the extraordinary cooperation it has provided in our efforts to disrupt the financing of terrorist organizations. After the September 11th attacks in New York and Washington, The Bahamas moved quickly to identify and freeze suspect accounts and has closely cooperated with U.S. law enforcement authorities investigating the financing of terrorist organizations.

"The tax information exchange agreement we are signing today marks another important step forward in our relationship. By signing this agreement, The Bahamas leaves no doubt that it should be counted among the financial centers of the world that are committed to upholding international standards and simply will not tolerate the abuse of their financial institutions for illicit purposes.

"I have spoken many times about our obligation to enforce our tax laws, because failing to do so undermines the confidence of honest taxpayers in the fairness of our tax system. I have pledged that we would do our utmost to ensure adequate enforcement of our laws, and I made a commitment to quicken the pace for obtaining new tax information exchange agreements. Today's signing is a significant step forward in our continuing journey, and I hope that the cooperative spirit of The Bahamas will serve as an example for other countries in the Caribbean and around the world."