However, over the past twenty years, the sector has experienced a gradual decline due to among other things, the termination of the Tax Treaty with the United States and the abolishment of the US Foreign Withholding Tax. Also, increased competition from taxexempt jurisdictions has affected our international financial services sector.
One of the main tax measures that had an impact on the sector, was the enactment of a New Fiscal Regime in 2001 to be in full compliance with the policies of the OECD for fair tax practices. The NFR ended the distinction between onshore and offshore entities.