Why Samoa?

Samoa prides itself in Stability, Innovation and competitiveness. However, there are many factors that demonstrate Samoa as the jurisdiction of choice amongst other international financial centres. Samoa was the first South Pacific Island to gain independence in 1962, and has since maintained political stability through a Westminster styled Parliamentary democracy. The Government of Samoa has support ed its international finance centre
since its inception in 1987.

Striking the right balance in regulation and meeting the requirements of legitimate business is one of Samoa’s main advantages. Samoa has strived to adhere to global standard in the area of financial regulation and
cross border cooperation.
It has avoided implication in recent
money-laundering and tax evasion
scandals; its efforts to comply with
international standards and regulations, promotes Samoa as an innovative and credible jurisdiction of choice.

China Offshore Summit Shenzhen 2017

The Act opens a gateway for business opportunities for our local professionals providing trust business or looking at offering trust services as it enables law and accounting firms to apply for a managing trust licence.

“The Trustee Companies Act introduces managing trust licenses and three(3) types of licenses for service providers to choose from”

On the Compliance front, the Act demonstrates Samoa’s adherence to international standards particularly in preparation for Samoa’s next round of reviews by the OECD in the third quarter of this year. While we acknowledge effects from the stringent regulatory policy makers, impact of events such as the economic recession, credit crunch and a move towards a more transparent regime in the trust business, prompts us, nevertheless with greater reason to ensure that the main piece of legislation governing the work of Trustee Companies in Samoa reflects relevant international standards to ensure stability and continuity of the Trust industry. To this end, requirements such as the definition of ‘beneficial owner’ as well as provision of accounting records and ready availability of crucial information regarding international financial vehicles have been incorporated into the Act to demonstrate Samoa’s commitment to an appropriately regulated environment.

The Foundations Amendment Act 2017 (“Amendment”) implements the introduction of Fees and Forms for registration of Foundations. Equivalent to the provisions of the International Companies Act 1988 the Amendment and the Foundations Act 2016 provide an alternative to our popular international companies which have traditionally been Samoa’s mainstay. It is anticipated that the Amendment and Regulations for the Foundations Act 2016 will bring in more business as we embark on this New Year.

Unlike Samoan Trusts, a Samoan Foundation is a registered entity, which owns its own assets. There are provisions for special types of Foundation, such as a charitable foundation and a combination of a foundation with a limited partnership. An overseas Foundation may apply for redomiciliation into and out of Samoa

SIFA Consultant & staff – Foundations Amendment Review 2017

S amoa along with 60 other jurisdictions has committed to the OECD’s Common Reporting Standards (“CRS”) for the automatic exchange of information which will be effective for Samoa in September 2018. The legal basis of the automatic exchange of information is Article 6 of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (“the Convention”) which provides for the automatic exchange of information between Parties to the Convention where two Parties subsequently agree to do so. Accordingly, the Multilateral Competent Authority Agreement (“the MCAA”) provides a standardized and efficient mechanism to facilitate the automatic exchange of information in accordance with the Standard for Automatic Exchange of Financial Information in Tax Matters (“the Standard”).

By way of background, Samoa’s commitment to the OECD Project on Transparency and Exchange of Information for Tax Purposes dates back to 2009 when it was grey listed by the OECD as a non-compliant jurisdiction.

Swift action to address this saw Samoa signing 11 Tax Information Exchange Agreements (“TIEAs”) in the same year and passage of the Tax Information Exchange Agreement Act 2012 (“TIEA Act”). To date, Samoa has 17 TIEAs in place, all administered by the Ministry for Revenue (“MfR”) and our TIEA network continues to develop

In view of the Standard, Samoa has since passed the Tax Information Exchange Agreement Amendment Act 2017 (“the Act”) in late 2017, implementing the CRS for automatic exchange of financial information about persons that invest outside of their jurisdiction of tax residence. The objective of CRS is to assist, detect, and deter, offshore tax evasion.

To facilitate CRS for Samoa, trustee companies must be aware and ready to provide accounting information for reporting financial institutions or entities they deal with to the MfR. Key terms to note to identify reporting financial institutions include financial entities that provide a custodial or a depository or an investment entity or a specified insurance company. Schedule 3 of the Act sets out information for trustee companies to ensure smooth implementation of CRS for Samoa.

In broad terms, CRS requires trustee companies to carry out Due Diligence and Reporting of financial information to MfR. While we acknowledge that the MfR is the competent authority for CRS, we hope its implementation come September 2018 is successful. Useful information for CRS guidance can be found and accessed at www.oecd.org/tax/automatic-exchange which is the CRS Implementation Handbook and guidance set out in answers to “Frequently Asked Questions”. We also understand that MfR is compiling a Guidance Note for financial institutions to ensure the effective implementation of CRS here in Samoa.

Additionally, SIFA has provided significant financial assistance to help fund the electronic system to be used by MfR to implement CRS. The OECD will monitor the effectiveness of its implementation.

M aintaining ones wealth in order that they may pass it on is an important matter, even more important is how one carefully structures their wealth to ensure that they and their heirs are able to enjoy it over the long term. The wealth management industry is faced with numerous challenges, particularly with evolving customer needs and strict regulation. Wealth management clients are becoming more astute about financial planning, and are seeking digital capabilities and better advisory options.

On the regulatory front, compliance mandates make wealth management appear difficult, particularly in terms of structuring, however almost all the requirements focus on protecting the clients and their information, as well as ensuring the legal aspects are met.

Samoa prides itself in keeping up and complying with the international standards and is evident in its place on the white list’ of the Organisation for Economic Cooperation and Development (OECD) in 2016. It was also described by the International Monetary Fund and the World Bank as the model economy for the Pacific Region.

There has been a steady increase in the number of licensed entities in Samoa which is evidence of the growth of the international financial services industry in Samoa, as well the growing interest in the use of Samoa’s solutions.

The information and requirements have lead to a change in perspective for Samoa. Having engaged Mr Mark Lea as a consultant/advisor for Invest Samoa to conduct trainings for its local professionals on international estate planning and structuring, 2017 was the third year the Distance Learning Course (“DLC”) was conducted; training local professionals in matters of Samoan trusts and foundations, their respective salient features as well as potential risks and challenges.

The local professionals have built their capacity and developed their expertise with respect to international estate planning and structuring.

Building the capacity of the local professionals and practitioners will boost the attractiveness of Samoa, as prospective clients have assurance that they are provided with the best advice giving them the ability to utilise the most appropriate Samoan solutions; consequently boosting their attraction.

Following the trainings and workshops conducted, Invest Samoa continues to encourage the Private Sector to establish a Society of Trusts Estate and Practitioners (STEP) Chapter in Samoa. This will add value to the credibility of Samoa as an international financial services jurisdiction and increase the exposure of their respective firms/entities to the global industry.

Meeting with Licensed Trustee Companies 2017

Samoa as an international finance centre (IFC) for thirty (30) years has become the premier International Finance Centre in the South Pacific, despite perpetual and stringent changes in international regulations and standards.

Since 2014 there have been substantial changes in the solutions offered by Samoa particularly in regard to International Estate Planning. Samoa has taken a ‘client-centric’ approach providing legal and appropriate tailor-made solutions to accommodate the everchanging client needs as well as the legal standards.

In keeping up with developments in the offshore industry, Invest Samoa conducted Master Class Seminar presentations throughout 2017 in various locations. The International Seminars conducted were well received by all the participants at each Seminar

It was evident from the number of questions and information requests, that there is a budding interest in the use of Samoan solutions as a viable alternative for business compared to the more established jurisdictions.

The final Seminar for 2017 was held in Dubai and there was a lot of interest from the STEP Dubai sector.

As a result of the successful Seminar presentations, Invest Samoa will continue for 2018, adding China as one of the destinations for the 2018 Seminar Series. The intention is to keep the momentum going with regard to raising the awareness on Samoan international finance solutions as well as Samoa as the jurisdiction of choice for international financial business.

NVEST SAMOA CALENDAR OF EVENTS

I n addition to the International Seminars, Invest Samoa has utilized opportunities to sponsor important conferences and events pertaining to the industry, in order to also gain more interest and awareness on Samoan solutions.

Invest Samoa was the Silver Sponsor for the China Offshore Summit in Shenzhen, May 2017 as well as the Silver Sponsor for the China Offshore Summit held in Shanghai in October 2017.

The China Offshore Summit is attended by over 300 delegates, comprising of China’s leading international trust companies, financial intermediaries, corporate service providers, lawyers as well as other IFCs such as the British Virgin Islands (“BVI”), Labuan and Guernsey who are our competitors.

We are on the web www.investsamoa.ws

Level 6
Development Bank of Samoa Building
Apia
SAMOA
Phone: +68566400/ +68566412
Fax: +68520880
Email: info@investsamoa.ws
Facebook: facebook.com/investsamo

The objective of Conference attendance is to gauge the interest of professional service providers, and how potential high net-worth clients can benefit from the solutions offered by each jurisdiction.

Speakers and panelists for the selected topics are professionals, wealth management advisors and lawyers. Amongst experienced speakers was Mr Mark Lea who is the Invest Samoa Advisor and Consultant, presenting on the Samoan solutions, particularly taking a client-centric approach.

Additional to the China Offshore Summit, Invest Samoa was the Bronze and Memory Stick Sponsor of the annual Society of Trusts and Estate and Practitioners (STEP) held in Singapore, November 2017.

China Offshore Summit Shenzhen May 2017

Invest Samoa also partially sponsored the participation of two local private lawyers and one local private accountant. The Singapore STEP Conference brings together professionals in wealth structuring and management. There is a desire and need to develop a local professional work force to provide structuring advice based on Samoan wealth management solutions, which will boost the credibility of Samoa as the jurisdiction of choice.

China Offshore Summit Shanghai October 2017