In 2023, the seemingly interminable fallout from pandemic recovery and the ongoing war in Ukraine have continued to challenge the global economy with high inflation, climbing interest rates, and volatile financial markets. Caribbean countries have continued to suffer tangible impacts of climate change, shining a spotlight on the burgeoning growth and development of ESG investing.
As the business of wealth management remains in the grasp of technological forces, clients’ needs are evolving with the generations, and tech responds by creating tools with increasing power and functionality. Ahead of the curve, Caribbean IFCs continue to create legal and administrative structures that will empower historically respected jurisdictions to remain top-of-mind for wealth managers.
This edition of IFC Caribbean dives into key issues impacting the region’s investment landscape, with Zarea Kamil and Mark Pragnell setting the stage by outlining the tough choices faced by Caribbean IFCs, which “find themselves at a pivotal moment.” Although many external forces are beyond the control of Caribbean countries, they suggest that IFCs “can vigorously promote environmental finance and tourism practices,” and take advantage of “opportunities in … international sustainable finance.”
Arbitration in the Caribbean is a flourishing sector, with business owners realising its value in resolving internal breakdowns, so as well as a regional roundup from The Honourable Barry Leon, we feature updates from Barbados, Cayman and BVI.
We also examine the wider dynamics of the Latin American and Caribbean relationship with Alicia Nicholls, who asks “could an alliance between Latin American and Caribbean countries on global tax matters be beneficial to Caribbean IFCs?”, while Paul Byles provides a comprehensive review of the AML/CFT landscape after what he calls “an endurance challenge.”
As ever, legal matters come under scrutiny, with transformational legislation being introduced across the region’s IFCs. Andrew P Morriss and Charlotte Ku examine the advantages of English Company Law in the Caribbean, while Julian Morris dramatically debunks a recent Tax Justice Network report that claims “over the next decade the world will “lose” $4.7 trillion in taxes.”
With continued focus on cutting edge legislation, emerging global trends, and shifting market dynamics, Caribbean IFCs remain at the forefront of international finance. The region’s historical significance in the wealth management industry, and aspirational geographical location, continue to shore up its ability to weather existential global storms. As IFC Caribbean 2023/24 shows, the region continues to create innovative and transparent wealth management solutions and products, while transforming to the needs of 21st century investors.