The Society of Trust and Estate Practitioners (STEP) hosted an industry luncheon today during which a leading tax lawyer spoke on the topic of US tax evasion and the importance of compliance for US citizens resident in The Bahamas.

Arthur Dichter, partner at Florida-based law firm The Cantor Group, warned STEP professionals that, in the wake of the Panama Papers document leak, the US was tightening its regulations and moving towards more stringent compliance and disclosure.

Speaking to The Bahamas Investor ahead of today’s presentation, Dichter (pictured) said: “The US is taking steps to combat its growing reputation as a tax haven [through] revised banking regulations.”

The US Treasury is proposing regulations that will identify the beneficial owners of certain entities and, in the future, Dichter predicts that the US will be forced to adhere to some model of the Common Reporting Standard (CRS) currently being adopted by The Bahamas.

The Bahamas hopes to introduce the CRS by December 2018, with Minister for Financial Services Hope Strachan announcing this week that the government is presently drafting the legislation.

“Ultimately I think it would require the US to sign on to CRS,” said Dichter. “That is the direction it is going to go. The US cannot play by its own rules any more.”

Dichter praised The Bahamas’ efforts to ensure it remains compliant, saying: “The Bahamas has a good platform and the financial institutions always been concerned with compliance.”

The STEP presentation was held at the British Colonial Hilton, Nassau with the theme: Tax Evasion Wars: The US Awakens.

cmorris@dupuch.com