Economy of Nevis

s, asset management firms, have created a boost in the economy. During 2005, the Nevis Island Treasury collected $94.6 million in annual revenue, compared to $59.8 million during 2001. In 1998, 17,500 international banking companies were registered in Nevis. Registration and annual filing fees paid in 1999 by these entities amounted to over 10 percent of Nevis’ revenues. The offshore financial industry gained importance during the financial disaster of 1999 when Hurricane Lenny damaged the major resort on the island, causing the hotel to be closed down for a year and 400 of the 700 employees to be laid off.

In 2000, the Financial Action Task Force, part of the Organization for Economic Cooperation and Development (OECD), issued a blacklist of 35 nations which were said to be non-cooperative in the campaign against tax evasion and money laundering. The list included the Federation of Saint Kitts and Nevis, as well as Liechtenstein, Monaco, Luxembourg, the British Channel Islands, Israel, and Russia. No alleged misconduct had taken place on Nevis, but the island was included in the blanket action against all offshore financial business centres, as such centres cause a considerable loss of tax revenue for the G7 countries. With new regulations in place, Saint Kitts and Nevis were removed from the list in 2002