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Introduction
Today we debate an important compendium of financial services related bills that address three distinct subject matters. These are all very important pieces of legislation that will meaningful contribute to the competitiveness of our financial services industry and ensure that we remain a well-regulated international financial center. I remind colleagues the financial services industry is the second most impactful industry to the economy of The Bahamas as a contribution to GDP. I would also argue, when we speak of the creation of the middle class and upper middle class of The Bahamas, for at least the last three generations the financial services has been the most significant contributor.
A recent survey indicated that more than 90% of the employees in the international financial services firms surveyed were Bahamian. The salary scales put most of the positions in the industry in the middle class, and many in the upper middle class. If you look at compliance officers, which has been a strong area for Bahamian employment and professionals, a junior compliance officer is making more than $60,000, a compliance officer more than $80,000, and the Head of Compliance more than $151,000. The financial services industry in my opinion has been the most significant industry contributor to the middle class of The Bahamas, employees primarily made up of professional women.
Madam President, I now turn to the compendium of bills we debate today, I will discuss them in the order of subject matter.
Bahamas Executive Entity
The first set of Bills, the Banks and Trust Companies Regulation (Amendment) Bill, 2025, Executive Entities (Amendment) Bill, and Banks and Trust Companies (Private Trust Companies and Qualified Executive Entities) Regulations address the regulation of the Bahamas Executive Entity. A Bahamas Executive Entity is a legal entity designed to hold and manage executive functions within wealth management and fiduciary structures. It acts as a power holder and can perform various administrative, supervisory, fiduciary, and office-holding duties. They are frequently used in purpose trust structures, family offices, and acting in a fiduciary or protector capacity in trust structures.
Bahamas Executive Entities are not regulated or registered with a Bahamas financial services regulator. The Organization for Economic Co-operation and Development's ("OECD's") Global Forum on transparency and exchange of information recommended that all persons carrying on trust business in the jurisdiction, particularly the executive entities, be supervised by the relevant regulatory authority.
These bills and Regulations will introduce a new category of executive entity, the qualified executive entity, which, like the private trust company, will be exempted from the licensing requirements under the Banks and Trust Companies Regulation Act 2020 (No. 22 of 2020), but will be required to have a registered representative, which is either licensed by, or registered with, the Central Bank.
Banks and Trust Companies Regulation (Amendment) Bill, 2025 makes provision for the Central Bank of The Bahamas ("the Central Bank") to regulate —
- any executive entity registered under the Executive Entities Act, (Ch. 369E), which exercises the powers and duties of a trustee; and
- any foundation to be included under the Central Bank's regulatory remit, as an entity to which a Registered Representative may offer foundation agent services.
These bills will ensure we maintain compliance with OECD international standards.
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