Government advances legislation to strengthen Financial Services soon to draft AI policy

NASSAU, The Bahamas - The Government of The Bahamas continues to advance legislation to strengthen and modernize the country's financial services sector, Attorney General and Minister of Legal Affairs, Senator the Hon. Ryan Pinder, told attendees at the Association of International Banks & Trust Companies' 20th Annual Nassau Conference, held recently at Baha Mar under the theme 'Blueprint to Broadening Global Reach.'

Minister Pinder said: The Bahamas is pursuing a progressive legislative agenda to keep pace with global standards, ensure competitiveness, and develop innovative products.

Recent reforms include:
Trust and Corporate Structures: Amendments now require greater transparency and oversight of executive entities and nominee arrangements, in line with OECD and FATF standards. Updates also strengthen confidentiality in trust disputes and expand the use of arbitration.

Anti-Money Laundering/Counter-Terrorist Financing: Ahead of next year's FATF 5th Round Mutual Evaluation, six laws-including the Proceeds of Crime Act and Register of Beneficial Ownership Act-were updated to tighten compliance and enhance international cooperation.

Segregated Accounts Companies: A new SAC Act modernizes the 2004 framework, allowing for demergers, foreign continuations, and "incorporated cells" to attract new business.

Sectors: Work is underway on legislation for Decentralized Autonomous Organizations (DAOs), while an expert committee will soon draft a national Artificial Intelligence Policy, addressing both opportunities and risks for financial services.

"The Bahamas must remain nimble, innovative, and compliant in a fast-changing marketplace," Minister Pinder said. "Our goal is to broaden our global reach while ensuring Bahamians benefit from a strong, competitive financial services industry."