Money-laundering affects the first world as well, since a favored shell company investment is real estate in Europe and North America. London, Miami, New York, Paris, Vancouver and San Francisco have all been affected. The practice of parking assets in luxury real estate has been frequently cited as fueling skyrocketing housing prices in Miami, where the Miami Association of Realtors said that cash sales accounted for 90% of new home sales in 2015. "There is a huge amount of dirty money flowing into Miami that's disguised as investment," according to former congressional investigator Jack Blum. In Miami, 76% of condo owners pay cash, a practice considered a red flag for money-laundering.
Slavery was abolished in the British Empire on 1 August 1834. After that British colonial officials freed 78 North American slaves from the Enterprise, which went into Bermuda in 1835; and 38 from the Hermosa, which wrecked off Abaco Island in 1840. The most notable case was that of the Creole in 1841: as a result of a slave revolt on board, the leaders ordered the US brig to Nassau. It was carrying 135 slaves from Virginia destined for sale in New Orleans. The Bahamian officials freed the 128 slaves who chose to stay in the islands. The Creole case has been described as the "most successful slave revolt in U.S. history".
More InfoDuring proprietary rule, The Bahamas became a haven for pirates, including Blackbeard (circa 1680–1718). To put an end to the 'Pirates' republic' and restore orderly government, Great Britain made The Bahamas a crown colony in 1718 under the royal governorship of Woodes Rogers. After a difficult struggle, he succeeded in suppressing piracy. In 1720, the Spanish attacked Nassau during the War of the Quadruple Alliance. In 1729, a local assembly was established giving a degree of self-governance for the English settlers. The reforms had been planned by the previous Governor George Phenney and authorised in July 1728.
More InfoInternational Monetary Fund (IMF) researchers estimated in July 2015 that profit shifting by multinational companies costs developing countries around US$213 billion a year, almost two percent of their national income. Igor Angelini, head of Europol's Financial Intelligence Group, said that shell companies "play an important role in large-scale money laundering activities" and that they are often a means to "transfer bribe money". Tax Justice Network concluded in a 2012 report that "designing commercial tax abuse schemes and turning a blind eye upon suspicious transactions have become an inherent part of the work of bankers and accountants".
More InfoThe government has adopted incentives to encourage foreign financial business, and further banking and finance reforms are in progress. The government plans to merge the regulatory functions of key financial institutions, including the Central Bank of the Bahamas (CBB) and the Securities and Exchange Commission. The Central Bank administers restrictions and controls on capital and money market instruments. The Bahamas International Securities Exchange consists of 19 listed public companies. Reflecting the relative soundness of the banking system (mostly populated by Canadian banks), the impact of the global financial crisis on the financial sector was limited.
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