12/12/2008 The Ministry of Finance
Ministerial Statement
To the House of Assembly
The Hon. Paula A. Cox, JP, MP
Deputy Premier and Minister of Finance
“Bermuda Concludes Mutual Legal Assistance Treaty with the United States of America”
Date: 12th December, 2008
Mr. Speaker, I rise this morning to inform this Honourable House that another milestone has been reached in the relationship between the US and Bermuda. I speak of the conclusion of negotiations of another treaty with the US, a Mutual Legal Assistance Treaty (“MLAT”).
The Ministry of Finance with the assistance of the Attorney-General’s Chambers has concluded a Mutual Legal Assistance Treaty (“MLAT”) with the Government of the United States.
Mr. Speaker, the MLAT is designed to improve the effectiveness of the law enforcement authorities of both the United States and Bermuda in the investigation, prosecution, and prevention of crime through cooperation and mutual legal assistance in criminal matters. The MLAT is one of a series of modern mutual legal assistance treaties being negotiated by the United States in order to counter criminal activities more effectively. The MLAT should be an effective tool to assist in the prosecution of a wide variety of crimes, including drug trafficking, money laundering, and terrorism offenses. By signing the MLAT, the Government of Bermuda further demonstrates and enhances its reputation for
not tolerating use of Bermuda vehicles for criminal activity and supports cooperation where there are allegations of tax fraud.
Mr. Speaker after years of negotiations led by the Ministry of Finance with the valued assistance of the Attorney General’s Chambers, the Ministry of Finance obtained a Letter of Entrustment (“Letter”) from the representative of the Foreign and Commonwealth Office in the UK to authorize the Government of Bermuda to conclude and sign the MLAT in respect of Criminal Matters with the Government of the United States. The Letter specified that the Government of Bermuda may sign and conclude the MLAT, with the understanding that the Government of the United Kingdom remains responsible for the external relations of Bermuda and that all costs arising out of the MLAT will be the responsibility of the Government of Bermuda.
Mr. Speaker we are grateful to His Excellency the Governor and the Deputy Governor who assisted in a quick delivery of the Letter of Entrustment from the UK Government.
Mr. Speaker all that remains is for a few procedural matters to be completed and it is hoped to sign the MLAT early in the New Year. The US State Department has offered for our convenience to hold the signing ceremony in Bermuda.
Mr. Speaker the MLAT marks a higher level of Bermuda’s relationship with the US and underpins the current two tax treaties we have with the US. Indeed the words that preface the MLAT are:
“The Government of the United States of America and the Government of Bermuda (as authorized by the Government of the United Kingdom of Great Britain and Northern Ireland) (hereinafter “the Parties”),
Desiring to improve the effectiveness of the law enforcement authorities of both the United States of America and Bermuda in the investigation, prosecution, and prevention of crime through cooperation and mutual legal assistance in criminal matters,
Reaffirming their determination to share information in matters involving the investigation and prosecution of criminal tax offenses as well as civil and administrative proceedings pursuant to the Convention Between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland (on Behalf of the Government of Bermuda) Relating to the Taxation of Insurance Enterprises and Mutual Assistance in Tax Matters, done at Washington, July 11, 1986, and the Agreement Between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland (on Behalf of the Government of Bermuda) for the Exchange of Information with Respect to Taxes, done at Washington December 2, 1988,
Have agreed as follows:”
Mr. Speaker, we are confident that the signing of the MLAT will be noted by key persons in Washington DC. Our contacts will ensure that the imminent signing of the US/Bermuda MLAT is brought to the attention of Bermuda’s friends and supporters on Capitol Hill.
We have seen recently that many jurisdictions with similar qualities to Bermuda are vying for existing and new business in these uncertain times. Each jurisdiction will experience gains as well as losses. However, in Bermuda’s case, coming on the heels of recent successes in the negotiation of Tax Information Exchange Agreements with OECD Member countries, the signing of this important treaty with the United States of America will add to Bermuda’s attraction as a premier jurisdiction for international business.
Thank you Mr. Speaker.
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