International Financial Centres Will Facilitate The Opening Up Of Cuba

When Raul Castro took over from his brother as President of Cuba in 2008, he began a long-anticipated process of political and economic reform. As a result of his strategy, the stagnant economy has been gradually coming to life, galvanised by a fledgling private sector. Diplomatic advances have been made, animosities are thawing and, slowly but surely, relations with the USA are being restored. With this sea change comes the possibility of direct foreign investment, a prospect historically laden with regulatory obstacles and risks - from both sides.

Past forays into Cuba by enterprising persons have resulted in success for some and misfortune for others. The adoption of the Foreign Investment Law in April 2014 has reduced some of the risks, establishing and fixing the goal-posts, but the legal and regulatory framework is still in its infancy and it will take time for familiarity and confidence to grow.

For those with the appetite to venture into the Cuban market, a company incorporated in an IFC such as the British Virgin Islands (BVI) can be an invaluable vehicle. IFCs play a vital role in moving capital from developed to developing countries, many of which would not be able to benefit from foreign capital without the stability and neutrality that can be...

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