BNP Paribas Divests Offshore Ops
BNP Paribas Divests Offshore Ops.
BNP Paribas Divests Offshore Ops, by Ulrika Lomas, Tax-News.com, Brussels
Thursday, April 08, 2010
BNP Paribas is finalizing its plan to terminate its wealth management activities in Panama, Grand Cayman and the Bahamas. The bank announced on April 2 that it had signed an agreement to transfer its operations to Scotiabank.
The announcement is as a result of the French government’s tough stance on territories that it considers are not compliant with international standards on tax transparency.
Last year, French banks undertook that they would close all of their branches and subsidiaries in countries on the Organization for Economic Cooperation and Development’s (OECD’s) ‘grey list’ after March 2010. This decision was announced following a meeting between President Nicolas Sarkozy, members of the government and financial leaders.
At the time of this announcement last October, all three territories were on the OECD’s ‘grey list.’ However, the Cayman Islands and the Bahamas have since been promoted to the OECD’s ‘white list’ of territories which have “substantially implemented” the Organization’s tax transparency standard. Panama remains on the ‘grey list,’ but has made a commitment to come into compliance with the transparency standard.
BNP Paribas said that the transaction is subject to regulatory approval and is expected to be completed in the third quarter of 2010. The terms of the transaction were not disclosed.
BNP Paribas said: “The transaction will optimally preserve employment locally and ensure that clients will continue to be provided with high-quality service. Scotiabank is Canada’s most international bank and a premier multinational financial institution. Scotiabank has offered personal and commercial financial services in Panama since 1974, the Cayman Islands since 1968 and The Bahamas since 1956. This transaction will make Scotiabank one of the largest wealth management providers in Panama.”
Dan Wright, Senior Vice-President & Head, Scotiabank International Wealth Management, added: “This agreement is a great fit with Scotiabank’s international wealth management growth strategy in the Caribbean and Latin American regions. Upon closing, the transfer will enhance Scotiabank’s existing operations in these jurisdictions, strengthening our ability to serve the needs of clients.”