Regulators Roundtable Discussion

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

Good afternoon,

I would like to thank my colleague minister Halkitis and his team and the Ministry of Economic Development for hosting this Regulator Roundtable and industry Briefing. This is a continuation of our administration's commitment of open dialogue with the financial services industry. It comes at an important time as we constantly are seeing the world stage create new and evolving international best practices in regulation, something that from a regulatory point of view, and an industry point of view takes a lot of time and effort. We as a jurisdiction have strived to keep pace, and in certain instances ahead of the pace in regulation, having achieved certain major milestones in regulation and compliance over the years. Today we will address and analyze existing and emerging issues with financial services with the goal of positioning the jurisdiction for continued stability and success.

History of Regulatory Excellence

The Bahamas through multiple administrations has established itself as a country with a history of regulatory excellence and compliance. For example, years ago the Bahamas achieved A certification by International Organization of Securities Commissions (IOSCO), better known as IOSCO A certification, an accomplishment so significant that the Commonwealth of the Bahamas at that time became the sole sovereign and independent country in the Caribbean Region who has achieved IOSCO A status. This is a significant commitment to international best practices and transparency in securities regulation.

We have a history of adopting regulatory compliance to create business opportunities. For example, complying with AIFMD allows Bahamas-based fund managers to continue to market or perform fund management activities for alternative investment funds (AIFs) in EU markets. The AIFMD MOUs entered into by the Securities Commission of the Bahamas set standards for co-operation and cross-border supervision, making the supervision of alternative funds more consistent globally and strengthening investor protection

The Bahamas has placed tremendous efforts over the last seven (7) years (2015 - 2022) in addressing strategic AML/CFT/CFP deficiencies. Progress was made each year with introduction of enhanced legislation and attendant regulations (e.g. POCA, 2018, FTRA 2018, ATA, 2018), supervisory and enforcement AML/CFT/CFP regimes, and increased engagement with the professional stakeholders, etc. These efforts and supporting evidence were assessed by...