What are the primary regulatory agencies for the financial services industry in The Bahamas?

Category: Regulatory Agencies

Answer:

The Bahamas has established a comprehensive regulatory framework that includes five regulators and supervisors in the financial sector.

The Central Bank of The Bahamas, the Securities Commission of The Bahamas (SCB), and the Registrar of Insurance Companies ensure adherence to international standards of oversight, service and confidentiality through a progressive regulatory and supervisory framework.

Regulation of the securities industry is structured to protect the interests of those who do business with financial institutions licensed in The Bahamas, and to ensure The Bahamas’ business environment continues to meet the highest international standards.

The Securities Commission was established in 1995. As part of its endeavour to keep abreast in an ever-changing global regulatory environment, and to ensure a Bahamian contribution in improving the efficiency and conduct of international markets, SCB became a member of the International Organization of Securities Commissions (IOSCO) and the Council of Securities Regulators (COSRA) in 1996 and 1997 respectively.

SCB’s mission is to effectively oversee and regulate the activities of the securities and capital markets, and to protect investors, while strengthening public and institutional confidence in the integrity of those markets,

In addition, a unique supervisory body, the Bahamas Compliance Commission, was established in 2000. The Compliance Commission, an essential part of the jurisdiction’s rigorous anti-money laundering efforts, is a supervisory body for non-traditional groups of financial institutions such as lawyers, accountants and other professionals where these institutions hold funds on behalf of clients.

The fully operational Financial Intelligence Unit of The Bahamas, a member of The Egmont Group of Financial Intelligence Units, and the International Legal Cooperation Unit of the Attorney General’s Office assure that The Bahamas fulfils its global commitment to the fight against money laundering and terrorism.

Other regulatory and supervisory agencies include the Inspectorate of Financial & Corporate Service Providers and the Public Utilities Commission. (Click onto Regulators from our home page to get a complete list, plus contacts)

Note: The Association of International Banks & Trust Companies is a professional, self-regulatory association for the offshore banks engaged in banking and trust business in The Bahamas. The AIBT promotes a high level of ethical conduct and management standards, with members adhering to a strict Code of Conduct. Similarly, the Bahamas Institute of Chartered Accountants has functioned as a self-regulatory body, ensuring professional compliance with International Auditing and Accounting Standards and Rules of Professional Conduct. BICA's efforts are backed statutorily under the Public Accountants Act 1991. Other industry groups that operate on a self-regulatory basis include the Bahamas Bar Association and the Bahamas Real Estate Association.