ii) establishment of "exempted companies" (enterprises allowed to carry out business only outside Bermuda) to engage in banking, deposit taking activities, and general management services;
iii) acquisition of real estate, including land, other than hotels;
iv) establishment of branches, agencies, etc. of foreign companies.
—Abroad by residents.
Remark: The reservation applies only to resident investment in "exempted companies“.
List B, Operations in real estate:
List B, III/A1—In the country concerned by non-residents.
List A, Operations in securities on capital markets:
IV/C1, D1—Purchase in the country concerned by non-residents.
Remark: The reservation applies to shares or other securities of a participating nature, which may be affected by laws on inward direct investment and establishment.
—Purchase abroad by residents.
Remark: The reservation applies only to the purchase by non-bank residents of securities in excess of the equivalent of BD$ 25 000 per person per annum.
List B, Operations on money markets:
V/D1— Purchase of money market securities abroad by residents.
Remark: The reservation applies only to the purchase by non-bank residents of securities in excess of the equivalent of BD$ 25 000 per person per annum.
List B, Other operations in negotiable instruments and non-securitised claims:
VI/D1—Purchase abroad by residents.
Remark: The reservation applies only to the purchase by non-bank residents of instruments in excess of the equivalent of BD$ 25 000 per person per annum.
List A, Operations in collective investment securities:
VII/D— Purchase abroad by residents.
Remark: The reservation applies only to the purchase by non-bank residents of securities in excess of the equivalent of BD$ 25 000 per person per annum.
List B, Operation of deposit accounts:
XI/B1，B2— By residents in domestic currency with non-resident institutions.
— By residents in foreign currency with non-resident institutions.
Remark: The reservation applies only to deposits by non-bank residents in excess of the equivalent of BD$ 25 000 per person per annum.
Reservations concerning operations between residents of the Channel Islands and non-residents:
List A, Direct investment:
I/A—In the country concerned by non-residents.
Remark: The reservation applies only to:
i) the acquisition in Alderney of real property by non-EU nationals and enterprises originating from non-EU countries, unless an authorisation is granted or the investor is forming or investing in a land-owning company;
ii) the purchase in Jersey of real estate, unless economic and social needs tests are satisfied or real estate is acquired through the purchase of shares in a property holding company.
List B, Operations in real estate:
III/A1—In the country concerned by non-residents.
Remark: The reservation applies only to:
i) the acquisition in Alderney of real property by non-EU nationals and enterprises originating from non-EU countries, unless an authorisation is granted or the investor is forming or investing in a land-owning company;
ii) the purchase in Jersey of real estate, unless economic and social needs tests are satisfied or real estate is acquired through the purchase of shares in a property holding company.
UNITED STATES
List A, Direct investment:
I/A—In the country concerned by non-residents.
Remark: The reservation applies only to investment in:
i) atomic energy;
ii) broadcasting (radio and _ television), common carrier, aeronautical en route, or aeronautical fixed radio station licenses as provided for in 47 United States Code § 310, unless an authorisation is granted under 47 United States Code § 310(b)(4).;
iii) air transport;
iv) coastal and domestic shipping (including dredging and salvaging in coastal waters and transporting offshore supplies from a point within the United States to an offshore drilling rig or platform on the continental shelf);
v) ocean thermal energy, hydroelectric power, geothermal steam or related resources on federal lands, mining on federal lands or on the outer continental shelf or on the deep seabed, fishing in the "Exclusive Economic Zone", and deepwater ports, except through an enterprise incorporated in the United States;
vi) branches of foreign insurance companies, to the extent that they are not permitted to provide surety bonds for US government contracts.
List A, Operations in securities on capital markets:
IV/B1, B2—Issue through placing or public sale of foreign securities on the domestic capital market.
Remark: The reservation applies only to the use of small business registration forms and a small issues exemption by non-resident issuers.
—Introduction of foreign securities on a recognised domestic capital market.
Remark: The reservation applies only to the use of small business registration forms and a small issues exemption by non-resident issuers.
Annex C. Decision of the Council Regarding the Application of the Provisions of the Code of Liberalisation of Capital Movements to Action Taken by the States of the United States
THE COUNCIL,
Having regard to Articles 2(d) and 5(a) of the Convention on the Organisation for Economic Cooperation and Development of 14th December 1960;
Having regard to the Code of Liberalisation of Capital Movements (hereinafter called the âCodeâ);
Having regard to the Report of the Investment Committee on the Codes of Liberalisation of Current Invisible Operations and of Capital Movements of 28th October 1961, in particular, paragraphs 18 to 21 thereof, and the Comments by the Executive Committee on that Report of 8th December 1961 [OECD/C(61)37, OECD/C(61)73];
Recognising that in the United States individual States have jurisdiction to act with respect to certain matters which fall within the purview of the Code;
Believing, however, that there is only a limited area of capital movements in which a Member might consider that the benefits it could reasonably expect to derive from the Code are being denied to it by such action and believing, moreover, that cases of any such action are unlikely to have a significant practical effect on the operation of the Code;
Convinced that where instances of this nature arise they will be settled in the tradition of cooperation which has evolved among the Members of the Organisation;
DECIDES:
1. The provisions of the Code shall not apply to action by a State of the United States, which comes within the jurisdiction of that State.
ACKNOWLEDGES THAT:
2. a) If a Member considers that its interests under the Code are being prejudiced by such action and notifies the Organisation of the circumstances, the United States Government undertakes in conformity with the constitutional procedures of the United States to bring the provisions of the Code and the circumstances notified, with an appropriate recommendation, to the attention of the competent authorities of any State concerned;
b) The United States Government undertakes to inform the Organisation of the action it has taken pursuant to paragraph 2(a) of this Decision and of the results thereof.
DECIDES:
3. This Decision shall form an integral part of the Code and shall be attached thereto as Annex C.
Annex D. General List of International Capital Movements and Certain Related Operations (1)
Introduction
The General List is an attempt to establish a comprehensive catalogue of non-governmental operations involving the transfer of capital from one country to another. It also contains certain sections â concerning, for example, non-resident-owned blocked funds â under which no such transfers take place but which are nevertheless closely related to the subject-matter of international capital movements for private account.
The general list serves as the basis for the Liberalisation Lists of Capital Movements set out in Annex A to the Code of Liberalisation of Capital Movements, but it does not deal with liberalisation as such. Member countries assume liberalisation obligations only with regard to the operations listed in Annex A to the Code.
The General List enumerates operations, which comprise transactions between residents of different countries as well as any capital transfers resulting directly therefrom and envisaged thereunder by the parties concerned. For example, the sections dealing with the granting of credits or loans cover not only the initial transfer of the capital amounts in question but also their subsequent retransfer; they do not, however, cover transfers, such as interest, which are considered to be current payments and therefore are dealt with in the Code of Liberalisation of Current Invisible Operations. The purchase or sale of foreign exchange in order to complete an operation included in the General List is covered by the section dealing with that operation. Foreign exchange transactions that are necessary to complete an operation included in the Code of Liberalisation of Current Invisible Operations are covered by the provisions of that Code.
All international capital movements have two distinct aspects: the capital export from one country and the corresponding capital import into another. Moreover, an operation between residents and non-residents may take place in the country of the resident, in the country of the non-resident, or in a third country. The attitude to any particular operation of the authorities of the countries concerned may thus differ, and the sections in the General List have been designed to take this into account.
Certain international capital operations might be for the account of one and the same person in which case they need not entail transactions between residents and non-residents, e.g. transfers of emigrantsâ assets, physical movements of capital assets, transfers of blocked funds.
The operations enumerated in the General List may be denominated or settled in any currency, including a composite currency such as the ECU or the SDR.
I. Direct investment
Investment for the purpose of establishing lasting economic relations with an undertaking such as, in particular, investments which give the possibility of exercising an effective influence on the management thereof:
A, In the country concerned by non-residents by means of:
1. Creation or extension of a wholly-owned- enterprise, subsidiary or branch, acquisition of full ownership of an existing enterprise;
2. Participation in a new or existing enterprise;
3. A loan of five years or longer.
B. Abroad by residents by means of:
1. Creation or extension of a wholly-owned- enterprise, subsidiary or branch, acquisition of full ownership of an existing enterprise;
2. Participation in a new or existing enterprise;
3. A loan of five years or longer.
II. Liquidation of direct investment
A, Abroad by residents.
B. In the country concerned by non-residents.
III. Operations in real estate (2)
A. Operations in the country concerned by non-residents:
1. Building or purchase.
2. Sale.
B. Operations abroad by residents:
1. Building or purchase.
2. Sale.
IV. Operations in securities on capital markets (3)
A. Admission of domestic securities on a foreign capital market:
1. Issue through placing or public sale of;
2. Introduction on a recognised domestic security market of:
a) shares or other securities ofa or public sale of participating nature;
b) bonds and other debt recognised domestic securities (original maturity security market of of one year or more).
B. Admission of foreign securities on the domestic capital market:
1. Issue through placing or public sale of
2. Introduction on a recognised domestic security market of:
a) shares or other securities ofa or public sale of participating nature;
b) bonds and other debt recognised domestic securities (original maturity security market of of one year or more).
C. Operations in the country concerned by non-residents:
1. Purchase
2. Sale
a) shares or other securities of a participating nature;
b) bonds and other debt securities (original maturity of one year or more).
D. Operations abroad by residents:
1. Purchase
2. Sale
a) shares or other securities of a participating nature;
b) bonds and other debt securities (original maturity of one year or more).
V. Operations on money markets (4)
A. Admission of domestic securities and other instruments on a foreign money market:
1. Issue through placing or public sale.
2. Introduction on a recognised foreign money market.
B. Admission of foreign securities and other instruments on the domestic money market:
1. Issue through placing or public sale.
2. Introduction on a recognised domestic money market.
C. Operations in the country concerned by non-residents:
1. Purchase of money market securities.
2. Sale of money market securities.
3. Lending through other money market instruments.
4. Borrowing through other money market instruments.
D. Operations abroad by residents:
1. Purchase of money market securities.
2. Sale of money market securities.
3. Lending through other money market instruments.
4. Borrowing through other money market instruments.
VI. Other operations in negotiable instruments and non-securitised claims(5)
A, Admission of domestic instruments and claims on a foreign financial market:
1. Issue through placing or public sale.
2. Introduction on a recognised foreign financial market.
B. Admission of foreign instruments and claims on a domestic financial market:
1. Issue through placing or public sale.
2. Introduction on a recognised domestic financial market.
C. Operations in the country concerned by non-residents.
1. Purchase.
2. Sale.
3. Exchange for other assets.
D. Operations abroad by residents:
1.Purchase.
2. Sale.
3. Exchange for other assets.
VII. Operations in collective investment securities
A. Admission of domestic collective investment securities on a foreign securities market:
1. Issue through placing or public sale.
2. Introduction on a recognised foreign securities market.
B. Admission of foreign collective investment securities on the domestic securities market:
1. Issue through placing or public sale.
2. Introduction on a recognised domestic securities market.
C. Operations in the country concerned by non-residents:
1. Purchase. 2. Sale.
D. Operations abroad by residents:
1. Purchase. 2. Sale.
VIII. Credits directly linked with international commercial transactions or with the rendering of international services
i) In cases where a resident participates in the underlying commercial or service transaction;
ii) In cases where no resident participates in the underlying commercial or service transaction.
A. Credits granted by non-residents to residents.
B. Credits granted by residents to non-residents.
IX. Financial credits and loans (6)
A. Credits and loans granted by non-residents to residents.
B. Credits and loans granted by residents to non-residents.
X. Sureties, guarantees and financial backup facilities
i) In cases directly related to international trade or international current invisible operations, or in cases related to international capital movement operations in which a resident participates;
ii) In cases not directly related to international trade, international current invisible operations or international capital movement operations, or where no resident participates in the underlying international operation concerned.
A. Sureties and guarantees:
1. By non-residents in favour of residents.
2. By residents in favour of non-residents.
B. Financial back-up facilities:
1. By non-residents in favour of residents.
2. By residents in favour of non-residents.
XI. Operation of deposit accounts (7)
A. Operation by non-residents of accounts with resident institutions:
1. In domestic currency.
2. In foreign currency.
B. Operation by residents of accounts with non-resident institutions:
1. In domestic currency.
2. In foreign currency.
XII. Operations in foreign exchange(8)
A. In the country concerned by non-residents:
1. Purchase of domestic currency with foreign currency.
2. Sale of domestic currency for foreign currency.
3. Exchange of foreign currencies.
B. Abroad by residents:
1. Purchase of foreign currency with domestic currency.
2. Sale of foreign currency for domestic currency.
3. Exchange of foreign currencies.