| Political Environment - Bahamas Business Guide |
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Both major political parties have enjoyed good relations with the business community, and no serious political movement in Bahamian history has ever advocated the nationalization of foreign property. There is no Bahamian history of political violence or instability, and politics tends to follow the British model of combining sometimes intense rhetoric with courtly manners. The political issues of most interest to the business community are bank secrecy and openness to foreign investment. Both political parties favor maintaining the Bahamian tradition of strict bank secrecy, believing this policy to be essential to the maintenance of a thriving financial services sector. The government introduced the Money Laundering (Proceeds of Crime) Act, 1996, which codified many of the due diligence procedures enshrined within the 1985 Code of Conduct of the Association of International Banks and Trust Companies in The Bahamas. Along with the Money Laundering (Proceeds of Crime) Regulations, 1996, the Act reinforced the Tracing and Forfeiture of Proceeds of Drug Trafficking Act, 1987, making it a crime to launder the proceeds of any criminal activity. The Bahamian legal system is derived from British Common Law and colonial legislation, although American and other models have been used for some business legislation enacted since independence. The judiciary is independent, and conducts fair and public trials with the ultimate right to appeal judicial decisions to the Privy Council in London. A large legal community, most of whom have received some training in Great Britain or the Caribbean, is available to assist foreign business clients. While fair, the Bahamian judicial process tends to be much slower than the norm in the United States. Although there have been instances of Bahamian businessmen attempting to take advantage of delays in the judicial process and their physical proximity to gain advantages in commercial disputes with foreign firms, there is no evidence that the Bahamian judiciary has favored local firms over foreign ones in its final adjudication of disputes. The Bahamian government began a process of upgrading its court system, in part with American government aid, in 1993. Bilateral U.S.-Bahamian relations are excellent. Although The Bahamas lie along the most direct air route for transport of illegal substances between South America and the southeastern United States, Bahamian government cooperation with U.S. law enforcement agencies under "Operation Bahamas-Turks & Caicos" (OPBAT) has significantly reduced the level of drug trafficking through The Bahamas. Bilateral cooperation in narcotics interdiction operations is extremely close. In 1994, the Bahamas strongly supported American efforts to end military rule in Haiti. A common language, cultural similarities, family and personal ties dating back to the days of the American Revolution (when the ancestors of many modern Bahamians first came to the islands from the southeastern United States), and the enormous number of visitors every year between the two countries have engendered a level of familiarity and ease of communication unusual even between neighboring countries.
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