Threat to Caribbean captives

Despite lengthy discussions in Barbados, London and Paris between OECD officials and representatives of the captive insurance industry in the Caribbean during the last two months, Caribbean governments still stand accused by the OECD of maintaining harmful tax havens. Little headway on meeting the needs of both sides appears to have been made. There is now a real fear that the captive insurance industry in the Caribbean could falter if the OECD forces governments to tighten up their tax systems.