The Central Bank of The Bahamas

The Central Bank of The Bahamas was established on 1st June 1974, and marked the beginning of a new phase in the monetary history of The Bahamas. Today, the Bank continues to diligently pursue its mandate.

Monetary Policy

The fundamental objective of monetary policy in The Bahamas has always been to maintain stable credit and other conditions to support the fixed parity between the Bahamian and U.S. dollars that has prevailed since 1973, while simultaneously allowing the economic development objective to be pursued

Further Information can be found on the Website of The Central Bank of the Bahamas

RSS Feeds

The Central Bank of the Bahamas provides RSS feeds on the latest news and updates:

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The Central Bank - Warning Notices

The Central Bank of The Bahamas issues warnings about dealing with named persons, whether these are individuals or companies, to alert the public and the financial services sector, that where such persons offer banking or other financial services from the addresses listed, they may be operating in breach of the Bank and Trust Companies Regulations Act 2000 and/or other Laws of The Bahamas.

The Warning List is published as a PDF on the Website of the Central Bank of The Bahamas

Website Link: -->Publications -->Category:Warning Notices

The public are invited to contact the Central Bank of The Bahamas with information and/or concerns regarding persons or companies offering banking or other financial services in the Bahamas

Economic Policy

The Government of the Commonwealth of The Bahamas is committed to building an economic environment

• in which free enterprise can flourish;
• where the Government assumes its proper role as regulator and facilitator of economic development;
• where the ideals of transparency, fair play and equality of treatment are paramount;

and a policy that maintains a stable society in which all people are afforded the opportunity to realize their maximum potential.

In this regard, the National Investment Policy is designed to support an investment friendly climate.

• It guarantees the complementarities of Bahamian and overseas investments;
• fosters appropriate linkages with all sectors of the economy, in particular the tourism and financial services sectors;
• encourages the exploitation of our natural resources in an environmentally sound, safe and sustainable manner;
• provides for the maximum level of employment;
• guarantees an acceptable level of economic security;

and generally fosters the economic growth and development of The Bahamas.

Investment Environment

To undergird the National Investment Policy, the Government will provide:

• A politically stable environment conducive to private investment
   
• An atmosphere where investments are safe and the expropriation of investment capital is not a considered option
   
• A legal environment based on a long tradition of parliamentary democracy, the rule of constitutional and statute laws and where security of life and personal property are guaranteed
   
• A stable macroeconomic environment bolstered by prudent fiscal management, a stable exchange rate, flexible exchange control rules and free trade
   
• An environment in which freedom from Capital Gains, Inheritance, Withholding, Profit Remittance, Corporate, Royalties, Personal Income, Dividends, Payrolls and Interest taxes is ensured
   
• Essential public services, an adequately equipped police constabulary, modern health and education facilities and other social services
   
• Dependable public utilities
   
• Essential public infrastructure such as roads, ports and airports

The Investment Policy

Executive Management of the Investment Policy is resident in the National Economic Council (NEC), headed by the Prime Minister. The Bahamas Investment Authority (BIA) or the Investor’s “One-Stop-Shop” serves as the secretariat of the NEC and the Investments Board.

Incentive

There are no taxes levied on capital gains, corporate earnings, personal income, sales, inheritance, or dividends. Benefits are available to all resident corporations, partnerships, individuals and trusts.

TIEA Negotiations

The Bahamas in its commitment to the UN, the OECD and to the International Standards for Financial Regulation & Cross-border Cooperation, has executed twenty-eight (28) Tax Information Exchange Agreements (TIEA) as of September 14, 2011

The Bahamas currently has TIEAs with:
Argentina, Aruba, Australia, Belgium, Canada, China, Denmark, Faroe Islands, Finland, France, Germany, Guernsey, Great Britain & Northern Ireland, Greenland, Iceland, India, Japan, Korea (Rep.), Mexico, Monaco, New Zealand, Norway, San Marino, South Africa, Spain, Sweden, The Netherlands, U.S.

The Bahamas Financial Services Board (BFSB) has compiled information relating to

• Bahamas Stance on International Tax Cooperation
• Bahamas Related Agreements
• Developments In Tax Cooperation

Link to BSFB - Tax Co-Operation

OECD Report

14/04/2011 – New reports by the Global Forum on Transparency and Exchange of Information for Tax purposes assess its members ability to stop international tax evasion:

see official Link to below text as published by the OECD

Only one significant issue was discovered in the review of The Bahamas – a problem ensuring the availability of accounting information for all relevant entities and arrangements including international business companies, registered private and foreign-incorporated companies, authorised purpose trusts and foundations. Otherwise, all essential elements identified in the Global Forum’s Terms of Reference were found to be in place. The Bahamas’ Phase 2 review is scheduled for the second half of 2012.

Financial Services in The Bahamas

The Bahamas has maintained a historic commitment to providing high quality service in the Finance Industry. The Bahamas Financial Services Board provides an extensive Guide to the Financial Services in The Bahamas, covering

• E-Business
• Foundations
• Investment Funds
• Maritime Services
• Private Trust Companies
• Private Wealth Management

Recently published

References to recent publications of The Central Bank of the Bahamas

Publication	Date	Detail
Economic Review-Q1	July 9th, 2011	Economic Update for the quarter ended 31st March 2011
Cumulative Warning Notice	July 7th, 2011	Warning notices are issued by the Central Bank, to alert the public and the financial services sector, that named individuals and/or companies, may be operating in breach of the Banks and Trust Companies Regulations Act, 2000, and/or other laws of The Bahamas.
Managed Licensees	June 1st, 2011	Outlines the Central Bank’s policy for the minimum requirements for the management and operation of banks and trust companies that operate under either a restricted bank and/or trust company licence, or a restricted bank and/or trust company licence, whose operation is limited to conducting business with or seeking/accepting deposits from the primary shareholder(s) and the “immediate family members” of the primary shareholder(s), without a physical presence, (collectively referred to hereafter as “Managed Licensees”).