Bahamas
- Forefather of Caribbean Finance

As a sovereign country with a pro-business government, strong regulatory oversight and sensitivity to the requirements of a global market, The Bahamas provides a unique environment for the conduct of international business.

The financial sector contributes over 20% to GDP, with annual expenditures in the local economy of the banking sector alone exceeding $400 million, assets exceeding $350 billion, and with sizeable assets under management. There are over 80 insurance companies, with assets approaching $700 million. The 760+ Funds have assets under management totalling in excess of $200 billion. The Bahamas Ship Registry is one of the world's most prestigious and currently it is ranked as the 3rd largest ship registry in the world, with merchant ships representing some 35 million gross tons.

In 2006, The Bahamas received The Banker Award as Best International Financial Centre in the Western Hemisphere from The Banker. The Financial Times Group publication engages in “high level research” to identify leading International Financial Centres (IFC) across the world. On the occasion of the 2006 Awards, Stephen Timewell, Editor-in-Chief of The Banker said they identified IFCs “that offer banks and financial institutions the best locations and infrastructure to carry out their business and serve their clients.”

Overall, The Bahamas offers a full range of financial services and products, including: asset management and protection; commercial banking, brokerage services, company formation & administration; information technology services; insurance & support services; investment management; fund administration; private banking; maritime registry & support services; support services (back office); and trust services.

The Bahamas provides a tax neutral environment for international business. There is no direct taxation, i.e. on capital gains, corporate earnings, personal income, sales, inheritance or dividends.

The depth of professional services available has been crucial to growth. There are over 800 attorneys trained in English Common law and some 400 chartered accountants. In addition to the impressive number of these professionals practising in The Bahamas, other support services include corporate and ship registries, investment advisory and planning services, property management and insurance. Some banks also provide back-office administration and company management, as well as information processing of their affiliates from other offshore jurisdictions. Some firms in the financial services industry have expanded their services to include tax consulting, with others specialising in structures involving tax compliant insurance products.

BFSB, launched in 1998, represents an innovative commitment by the financial services industry and the Government of The Bahamas to promote a greater awareness of The Bahamas' strengths as an international financial centre. BFSB represents and promotes the development of all sectors of the industry, including: banking, private banking and trust services, investment funds, capital markets, investment advisory services, accounting and legal services, insurance, and corporate and shipping registry. Associate Memberships cover real estate, information technology and marketing & public relations. BFSB does not supplant existing financial services associations that continue to serve individual professional groups within the industry as they have in the past. Rather, the Board complements them, drawing much of its strength from close intra-industry participation and collaboration.


Maritime

The establishment of the Bahamas Maritime Authority in 1995 created a dedicated professional body with greater flexibility to manage the already established Bahamas Register of Ships and is the prime reason why The Bahamas is now the leading registry for cruise ships. The 1,500 plus Bahamian-flagged vessels, owned by some of the world’s major shipping and cruise line companies, all serve as a testimony to the Bahamas’ maritime heritage and leadership.

The legislative and judicial systems in The Bahamas are closely modelled on that of the United Kingdom and are therefore familiar to most ship owners, banks and lawyers. At the same time, Bahamian sovereignty which came with independence in 1973, assures the most flexible approach without compromising legal security.

With the major improvements in financial services legislation over the past 20 years and keen attention to the requisite regulatory requirements, The Bahamas is an important player in delivering international financial services


Bahamas Links

Links

The Bahamas Financial Services Board (BFSB) The Central Bank of The Bahamas Bahamas Maritime Authority Securities Commission of the Bahamas The Bahamas Institute of Financial Services The Society of Trust and Estate Practitioners (STEP)

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