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Jamaica Reviewing Partnership Act

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Reported By Eliahna McFarlane

Edited By Felicia J. Persaud

News Americas, FORT LAUDERDALE, FL, Fri. July 12, 2024: A review of The Partnership (General) Act, 2017 and the Partnership (Limited) Act 2017 of Jamaica is being conducted to ensure that the provisions of the Acts sufficiently incorporate recent  Financial Action Task Force, (FATF), Recommendations.

That’s the word from Janeika Allen, Crown Counsel (Actg), in the Jamaica Ministry of Industry, Investment and Commerce. Allen said Jamaica is obligated to meet the recommendations set out by the FATF, the  “independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction.”

But she did not give a deadline as to when the review will be completed. Her response to News Americas came just days after Jamaica was taken off the FATF ‘grey list.’

On June 28, 2024, the FATF,  at its Plenary held in Singapore, removed Jamaica from the ‘grey list,’ or the list of countries identified as having strategic deficiencies in their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) frameworks.

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. They are recognized as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard and the FATF calls upon all countries to effectively implement these measures in their national systems.

In a 2015 evaluation, Jamaica was compliant or largely compliant with only 17 of the 40 FATF Recommendations. The resulting action plan required it to include all financial institutions and designated non-financial businesses and professions (DNFBPs) in its AML regime, with adequate risk-based supervision in all sectors. It was also told to take appropriate measures to prevent legal persons and arrangements from being misused for criminal purposes, by making accurate and up-to-date basic and beneficial ownership information available when needed. Other required actions included taking proper measures to increase AML investigations and prosecutions; implementing targeted financial sanctions for terrorist financing without delay; and preventing the misuse of its non-profit sector for terrorist financing purposes. It narrowly missed the June 2023 deadline for fulfilling all these points, but by January 2024 was assessed as having made further significant progress, especially on DNFBPs and beneficial ownership. At that stage, Jamaica was re-rated compliant or largely compliant on 37 of the 40 FATF recommendations.

Following the June 28th decision, The Bank of Jamaica, said in a statement: “The development will enhance confidence among investors and trading partners thereby improving Jamaica’s economic potential.”

This also means that financial transactions between persons in Jamaica and those overseas, inclusive of remittance transfers, could now become more seamless over time,” the Bank added.

The Partnership (General) Act of 2017 allowed for the formation of three different types of partnerships: General Partnership without separate legal personality, General Partnership with separate legal personality, and Limited Liability Partnership.

Prior to the General Act, the Companies Act of 2004 placed a requirement that investors with more than 20 partners operating in Jamaica would need to form a company. Thirteen years later, the requirement was finally repealed under Section 112 of The Partnership (General) Act.

It is left to be seen whether the laws will be further amended by the Jamaica parliament this year.

EDITOR’S NOTE: Eliahna McFarlane is a Garvey-Nkurmah 2024 Fellow and summer extern at ICN/Invest Caribbean as well as a second-year law student at Howard University.

Grenada Keeps Old Citizenship by Investment Fee For Now Following Hurricane Beryl

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By NAN Business Editor

News Americas, New York, NY, July 8, 2024: On the heels of Hurricane Beryl, officials in Grenada have extended the fee increase deadline for applicants to its Citizenship by Investment (CBI) program.

A family stands outside their home destroyed by Hurricane Beryl in Grenada. ( UNICEF/Sam Ogilvie image)

A statement issued by the Investment Migration Agency (IMA), which manages the program, noted that a revised pricing structure was scheduled to take effect on July 1, 2024. However, Grenada, along with other countries in the Windward Islands, was impacted by the category 4 storm, which caused widespread damage and disruption on the same day the new pricing structure was due to be implemented.

“Acknowledging the unforeseen challenges faced by our valued partners during this period, the Agency has decided to extend the application submission deadline to July 12, 2024,” the IMA said. “This extension aims to provide agents and the bank adequate time to effectively manage their responsibilities considering recent events, thereby ensuring the smooth processing of applications under the updated pricing framework.”

The IMA emphasized that the hurricane impacted the ability of agents and the Grenada Co-operative Bank to meet the original application submission deadline, as it required time for preparation, recovery, and subsequent operational adjustments.

Grenada, alongside Antigua and Barbuda, Dominica, St. Kitts-Nevis, and St. Lucia, is part of the sub-regional Organisation of Eastern Caribbean States that signed a Memorandum of Understanding (MOU) establishing a minimum investment threshold of US$200,000, effective July 1, 2024.

Grenada’s revised pricing structure, published in an extraordinary government gazette on June 26, sets the threshold for a single applicant under the National Transformation Fund at US$235,000. For those investing in an approved project, the cost is US$270,000 for a single applicant or a family of up to four.

The IMA clarified that only fully completed applications submitted to Grenada Co-operative Bank Limited by June 30, 2024, with all required documents, will be accepted under the old price structure. Applications submitted by this date but incomplete will be processed under the new price structure once all required documents are provided.

Furthermore, any applications accepted under the old price structure but pending bank clearance must resolve all matters to the bank’s satisfaction and have funds received and cleared for submission to the IMA by July 31, 2024.

This extension is intended to ensure that all stakeholders can manage their responsibilities effectively in the aftermath of Hurricane Beryl, thus supporting the continued success of Grenada’s CBI program.

Guyana Earns $1.4 Billion in 50/50 Profit Share While Oil Companies Report $7.8 Billion in Profits

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Commentary By Darshanand Khusial

News Americas, NEW YORK, NY, Mon. July 1, 2024: If you and a partner invest in a boat and decide to split profits equally, you will feel cheated if her share is much greater than 50%.

For instance, if from the day’s catch of 200 pounds of fish, you both decide that 100 pounds of fish should cover the expenses such as bait and fuel, then there will be a profit of 100 pounds of fish to share. Your profit take will be 50 pounds and hers will also be 50 pounds.

Exxon and its partners in the Stabroek Block have a 50/50 profit-sharing agreement with Guyana for extracting our oil. However, when looking at the 2023 accounting profit numbers for the oil companies compared to what was deposited in the Natural Resource Fund (NRF) for Guyana, one would question how this can be a 50/50 profit-sharing agreement?

In a Stabroek Article on Feb 10th, 2023 titled, Renegotiating PSA would be ‘very destructive’ to investor confidence – Routledge, the President of ExxonMobil Guyana, Alistair Routledge in response to this question, “There is a wide public view that Exxon and its partners are benefiting from the 11 billion barrels of oil more than Guyanese.” is said to have made this point, ” he [Routledge] was quick to point out that the view is unrealistic as the Guyanese people are benefiting more from the deal than the investors. He said it is very clear that under the Stabroek Block PSA, 50% of the profit goes to the country and 50% goes to investors. He noted that an additional 2% from the investors’ share goes towards the payment of royalty which results in Guyanese receiving a total of 52% of profit oil.“

The industrious Chris Ram has published a trio of articles on the 2023 financials of the oil companies, adding to his masterpiece of 132 columns on Oil & Gas, see HERE. If one extracts the 2023 pre-tax profit for the oil companies from his articles, they add up to US$7.8 billion. Now, one would expect in a 50/50 profit share, Guyana in 2023 would receive US$3.9 billion (US$7.8 billion divided by 2) in profits. However, according to the 2023 Natural Resource Fund, Guyana’s 2023 share of profits was only US$1.4 billion. To put it another way, Guyana collected 17.9% of the total reported profits of US$7.8 billion reported in the 2023 oil companies’ financials (see chart below).

Exxon has a billboard claiming Guyana receives 52% of all profits from the Stabroek Block. The 17.9% of profits Guyana received in 2023 appears to invalidate this claim. The perception among Guyanese that Exxon and its partners benefit much more from our oil seems to be accurate based on the 2023 financials of the oil companies.

We can’t pay our teachers a living wage, and 40% or more of our population can’t afford enough protein to eat. The government should explain, how in a 50/50 profit share agreement, Guyana only received US$1.4 billion while the oil companies reported total profits of US$7.8 billion. The government has refused to renegotiate the lopsided Stabroek Block contract. Is it more worried about Exxon’s investor confidence than the plight of Guyanese?

EDITOR’S NOTE: Darshanand Khusial is a director of the non-profit Oil and Gas Governance Network, OGGN

Remittance To The Caribbean Declined In 2023

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By NAN Business News Editor

News Americas, New York, NY, Fri. June 28, 2024: Remittance to the Caribbean region declined in 2023, according to the latest data analyzed by News Americas from the World Bank’s Migration and Development Brief.

Windel Pierre, 41, a Haitian cab driver, sends money back to Haiti from Miami, FL. (Photo by Peter Whoriskey /The Washington Post via Getty Images)

After a period of strong growth during 2021-2022, officially recorded remittance flows to the Caribbean in 2023 totaled USD 19.499 billion, according to the NewsAmericasNow.com analysis. This is a decrease from the USD 20.144 billion recorded in 2022.

The only countries to report an increase in remittance inflows over 2022 were the Dominican Republic, Haiti, Belize, Trinidad and Tobago, St. Vincent and the Grenadines, Grenada, and St. Lucia. Countries that saw no change were Guyana, Barbados, St. Maarten, Aruba, Antigua & Barbuda, and the Cayman Islands. Countries recording a decline included Jamaica, Curacao, The Bahamas, Suriname, St. Kitts & Nevis, and Dominica.

The 2023 remittance flow from the most to the least per country, based on the World Bank data, is as follows:

Here is the tabulated data for the totals of 2022 and 2023:

Country2022 – USD Billions/Millions2023- USD Billions/MillionsDominican Republic10,61910,278Haiti4,2473,798Jamaica3,5673,688Guyana525525Trinidad & Tobago204200Curacao116159Belize152142Suriname147148St. Vincent/Grenadines9289Barbados8585Grenada8270St. Lucia6462Sint Maarten4848The Bahamas4258Aruba3838St. Kitts & Nevis3638Antigua and Barbuda3535Dominica3438Cayman Islands10–

GLOBALLY

Globally, remittance flows to low- and middle-income countries (LMICs) moderated in 2023, reaching an estimated $656 billion, according to the World Bank’s latest Migration and Development Brief released today.

The modest 0.7% growth rate reflects large variances in regional growth. Nevertheless, remittances remained a crucial source of external finance for developing countries in 2023, bolstering the current accounts of several nations grappling with food insecurity and debt issues. In 2023, remittances surpassed foreign direct investment (FDI) and official development assistance (ODA). Remittance flows increased most to Latin America and the Caribbean (7.7%), followed by South Asia (5.2%), and East Asia and Pacific (4.8%, excluding China). Sub-Saharan Africa saw a slight decline of 0.3%, while the Middle East and North Africa experienced a nearly 15% drop, and Europe and Central Asia saw a 10.3% fall.

Looking ahead, remittances to LMICs are expected to grow at a faster rate of 2.3% in 2024, although this growth will be uneven across regions. Potential downside risks to these projections include weaker-than-expected economic growth in high-income migrant-hosting countries and volatility in oil prices and currency exchange rates.

“Migration and resulting remittances are essential drivers of economic and human development,” said Iffath Sharif, Global Director of the Social Protection and Jobs Global Practice at the World Bank. “Many countries are interested in managed migration in the face of global demographic imbalances and labor deficits on the one hand, and high levels of unemployment and skill gaps on the other. We are working on partnerships between countries sending and receiving migrants to facilitate training, especially for youth, to get the skills needed for better jobs and income at home and in destination countries.”

“The resilience of remittances underscores their importance for millions of people,” said Dilip Ratha, lead economist and lead author of the report. “Leveraging remittances for financial inclusion and capital market access can enhance the development prospects of recipient countries. The World Bank aims to reduce remittance costs and facilitate formal flows by mitigating political and commercial risks to promote private investment in this sector.”

Sending remittances remains costly. In the fourth quarter of 2023, the global average cost of sending $200 was 6.4% of the amount being sent, slightly up from 6.2% a year earlier and well above the SDG target of 3%. Digital remittances had a lower cost of 5%, compared with 7% for non-digital methods, highlighting the benefits of technological advancements in reducing the financial burden on migrants.

With remittances growing in importance, accurate data collection is essential to support the UN Sustainable Development Goals on reducing costs and increasing volume. However, statistical data remain inconsistent and incomplete. The global gap between inward and outward remittance flows has widened, with informal channels being a major factor, such as migrants carrying cash by hand when they return home. The International Working Group to Improve Data on Remittance Flows (RemitStat) will release a report later this year with recommendations for improving data.

The Caribbean Saw An Increase In Foreign Direct Investment in 2023

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By NAN Business Editor

News Americas, NEW YORK, NY, Fri. June 28, 2024: Foreign direct investment (FDI) to the Caribbean saw an increase in 2023 compared to 2022, a NewsAmericasNow.com analysis of the 2024 World Investment Report data showed. Excluding offshore financial centers, overall FDI in the Caribbean was up by 6 percent, with most countries experiencing growth. The Dominican Republic saw a 7 percent increase in inflows year-on-year.

Over the past five years, foreign investments have expanded across the region’s main economic groupings, with flows to the Caribbean Community (CARICOM) tripling compared to 2018.

In 2022, the CARICOM region recorded USD 1,768,365 in foreign direct investment, while in 2023 the total was USD 1,813,150.

Here is the tabulated data for foreign direct investment (FDI) inflows in 2023 and 2022:

Country2023 (USD)2022 (USD)British Virgin Islands1,068,2461,028,356Cayman Islands601,061572,927Dominican Republic56,37251,982Bahamas29,90428,502Jamaica18,76318,332Guyana10,27917,074Trinidad and Tobago9,9229,918Grenada2,1531,990Aruba4,5084,686Belize2,8122,679Saint Lucia2,0041,865Suriname1,8531,936Saint Kitts and Nevis1,7091,676Saint Vincent and the Grenadines1,6831,601Anguilla1,3821,528Curaçao1,2361,081Sint Maarten224190Montserrat4942

Jamaican Launches Vodka Made From Yam

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News Americas, New York, NY, June 20, 2024: A Jamaican national has come up with a unique vodka, set to take the market by storm later this month.

Wait a Bit Vodka, a premium small-batch vodka crafted in Jamaica, has entered the market with a unique twist according to the Jamaica Observer. Made from select yellow yams grown by small farmers in the mountainside town of Wait a Bit, Trelawny, this vodka boasts a blend of local spring water from the Cockpit Country. Gluten-free and exceptionally fresh, Wait a Bit Vodka promises a high-quality spirit while supporting local farming initiatives.

Principal Lincoln Nicholson of Wait a Bit vodka.

Wait a Bit Distillers was founded by principal Lincoln Nicholson with a vision to produce premium quality spirits infused with authentic Jamaican flavors. The goal is to showcase these unique flavors to the world, starting with their flagship product, Wait a Bit Vodka. The ingredients for Wait a Bit Vodka are locally sourced, primarily within a 10-mile radius of the distillery in Trelawny. This proximity ensures freshness and supports the local farming community.

Wait a Bit Vodka is set to hit the market in late June 2024. It will be available at select retailers, offering consumers a taste of Jamaica’s finest small-batch vodka. True to its artisanal nature, Wait a Bit Vodka is crafted in small batches, with every aspect, including the packaging, done by hand. This attention to detail highlights the brand’s commitment to quality and craftsmanship.

The distillery’s first major breakthrough came after a tasting session with a well-known spirits company, which praised the high quality of the vodka. This endorsement has been a significant boost for the brand. The response to Wait a Bit Vodka has been overwhelmingly positive. Consumers appreciate the fresh taste and the use of locally sourced ingredients, which support small farmers in Jamaica.

Wait a Bit Distillers aims to grow its brand internationally, making Wait a Bit Vodka known for its exceptional quality and unique Jamaican yellow yam base. The journey has not been without challenges, especially with engineering works and operating in rural Jamaica. However, the company has embraced these hurdles, embodying the spirit of patience reflected in its name, Wait a Bit.

Jamaicans are encouraged to support Wait a Bit Vodka, a product made from locally grown yellow yams by hardworking farmers. The brand’s focus on quality and its roots in the local community make it a premium choice in the market.

Multi-Billion Dollar Development For Puerto Rico

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News Americas, New York, NY, June 20, 2024: Get ready for a multi-billion dollar development in the Caribbean.

Reuben Brothers and Three Rules Capital have unveiled a master plan for a $2 billion development in Puerto Rico featuring its own private airport and breathtaking views of the Caribbean Sea.

This multi-billion project is coming to Puerto Rico.

Named Esencia, this project on the island’s west coast will include luxury hotel rooms and branded residences. According to a statement, the development will be anchored by esteemed hotel operators such as Aman Group, Mandarin Oriental Hotel Group, and Rosewood Hotels & Resorts, with JPMorgan Chase & Co. as the lead financier.

“Puerto Rico, especially its west coast, is a beautiful and vibrant place with immense growth potential,” stated Jamie Reuben, a principal at Reuben Brothers. “We saw an opportunity for a transformative investment that will create thousands of jobs.”

Spanning over 2,000 acres (809 hectares), Esencia will feature two golf courses, an equestrian center, and a bilingual K-12 school. The plan will be executed in five phases, with the first phase expected to be completed three years after construction begins.

Billionaires Simon and David Reuben’s real estate investment company, which owns properties worldwide, including Los Angeles’ Century Plaza and London’s Admiralty Arch, is behind this venture. Their combined net worth is approximately $15.6 billion, according to the Bloomberg Billionaires Index.

The Esencia project will preserve open spaces for recreation and conservation, limiting structures to 23% or less of the land.

Puerto Rico has become a hotspot for wealthy mainlanders, including traders, financiers, and crypto investors, due to its lucrative tax breaks. The US territory, home to 3.2 million people, began offering these tax incentives in 2012 to stimulate economic growth. Qualifying individuals pay no taxes on dividends, interest, and capital gains, attracting over 6,000 residents under the “resident individual investor” program.

Exclusive enclaves like Dorado Beach, where notable figures such as hedge fund billionaire John Paulson and YouTuber-turned-boxer Jake Paul reside, have emerged. A penthouse in this community recently listed for $49 million.

“The growing and resilient customer base has led to demand outstripping supply in the luxury residential and resort market,” said Will Bennett, co-founder of Three Rules Capital. “This is particularly true in Puerto Rico, where the local government’s efforts have successfully promoted tourism growth.”

Top Non-Fiction Books Of Summer 2024

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News Americas, NEW YORK, NY, Sat. June 15, 2024: Looking for some new non-fiction books to read this summer. Here are the Top Non-Fiction Books of 2024 according to Goodreads.

#1

Want to Read

#2

Want to Read

#3

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#4

Want to Read

#5

Want to Read

#6

Want to Read

#7

Want to Read

#8

Want to Read

#9

Want to Read

#10

Want to Read

#11

Want to Read

These Ten Caribbean Nations Are Poised For Positive Economic Growth In 2024

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News Americas, Washington, D.C., Weds. June 12, 2024: Ten Caribbean nations are forecasted to show positive growth this year, according to the World Bank’s latest Global Economic Prospects report. The overall growth for the Caribbean is expected to strengthen to 7.1 percent in 2024, with a continued robust performance in 2025 at 5.7 percent. Excluding Guyana, the growth rate is forecasted at 3.9 percent in 2024 and 4 percent in 2025. Analysts attribute this growth to a moderate recovery in tourism and remittances.

Caribbean Countries Set To Show Positive Growth in 2024

Country2024 Growth (%)Guyana34.3Dominican Republic5.1Saint Vincent and the Grenadines5Dominica4Barbados3.7Belize3.4Suriname3St. Lucia2.9The Bahamas2.3Jamaica2

Global Outlook

The global economy is expected to stabilize for the first time in three years in 2024, although at a weaker level compared to recent historical standards. Global growth is projected to hold steady at 2.6% in 2024 before slightly increasing to an average of 2.7% in 2025-26. This is below the 3.1% average seen in the decade before COVID-19. The forecast suggests that from 2024-26, countries representing more than 80% of the world’s population and GDP will grow more slowly than in the pre-COVID-19 decade.

“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face high levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will need to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them, especially the 75 countries eligible for concessional assistance from the International Development Association, will need international support to achieve this.”

“Although food and energy prices have moderated globally, core inflation remains relatively high and could stay that way,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group. “This could lead central banks in major advanced economies to delay interest-rate cuts. An environment of ‘higher-for-longer’ rates would mean tighter global financial conditions and much weaker growth in developing economies.”

ExxonMobil Guyana Reports Record GUY$614.6 Billion Profit for 2023

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News Americas, New York, NY, Fri. June 7, 2024: ExxonMobil Guyana Limited (EMGL), the operator and one of the coventurers in the prolific Stabroek Block offshore Guyana, has reported a net profit of GUY$614.6 billion (One Guyana dollar = US$0.004) at the end of 2023.

This profit comes as the country’s revenue for the year surpassed $1 trillion, with total operating expenditures pegged at $356.1 billion. Revenues refer to the income the company generates, while operating expenditures represent the company’s expenses and responsibilities.

Exxon’s financials were shared with the media on Thursday during an engagement at the company’s office. The company’s Vice President and Business Services Manager, Phillip Rietema, told reporters that ExxonMobil Guyana continues to reinvest much of its earnings into expanding production in Guyana. Still, last year’s financials are a positive sign for the company.

“2023 was another profitable year, reflecting the building on the success of prior years,” Rietema said.

Last year, the company earned $577.7 billion in profits, up from $132 billion in the previous year, which was the first year the company made a profit in Guyana. Rietema explained that the increased revenues and profits resulted from higher production from the oil platforms operating offshore.

Globally, ExxonMobil’s profit was US$36 billion, approximately GUY$7.5 trillion. CNOOC and Hess, the other coventurers in the block, have separate financial figures.