Commercial Entities (Substance Requirements) (Amendment) Bill, 2023

• Published date: 09 March 2023
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Financial Services, Compliance, Contracts and Commercial Law
• Law Firm: Bahamas Financial Services Board
• Author: Bahamas Financial Services Board

A BILL FOR AN ACT TO AMEND THE COMMERCIAL ENTITIES (SUBSTANCE REQUIREMENTS) ACT, 2018

Enacted by the Parliament of The Bahamas

1. Short title and commencement.

1. This Act, may be cited as the Commercial Entities (Substance Requirements)(Amendment) Bill, 2023.
2. This Act shall come into force on a date to be appointed by the Minister by notice to be published in the Gazette.

2. Amendment of section 12 of the principal Act.

Section 12 of the principal Act is amended

1. by the deletion of subsection (1) and the substitution of the following -
   1. "(1) The Authority shall, upon receipt of an electronic form filed by an entity, spontaneously exchange the same with the reportable jurisdiction of the entity's legal or beneficial owner and its claimed tax residence."
2. by the deletion of subsection (2).

3. Amendment of section 16 of the principal Act.

Section 16 of the principal Act is repealed and replaced by the following -

"16. Measures to ensure compliance.

1. Upon review of the results of an onsite inspection under section 13 or information provided from a reportable jurisdiction where the Authority determines that an entity has failed to meet the substance requirements in accordance with section 3(1) that entity commits a breach of this Act
2. If an entity has failed to comply with section 3(1), that entity shall have a period of twenty-eight days to comply with the substance requirements of this Act and satisfy the Authority of its compliance.
3. The Authority may, in its discretion, direct the entity by notice in writing to deliver to the Authority all such information and documentation necessary to satisfy itself of the entity's compliance with the substance requirements.
4. If the entity fails to comply with subsections (2) or (3), that entity shall be directed by notice in writing to conduct a formal audit by an approved auditor under section 14, at the expense of the entity.
5. If the entity does not commence the formal audit within twenty-one days of the Authority's direction, the entity shall be subject...