The five regulatory agencies concerned with the financial services industry of The Bahamas have signed a Memorandum of Understanding that provides for information sharing, inter-regulatory cooperation, and harmonisation of policies and practices.
The MOU was signed by the Governor of the Central Bank, the Chairman of the Securities Commission of The Bahamas, the Registrar of Insurance Companies, the Inspector of Financial and Corporate Service Providers, and the Chairman of the Compliance Commission.
These industry regulators have statutory responsibility for the regulation of designated financial institutions, under respective legislation:
-Central Bank of the Bahamas Act
-Banks and Trust Companies Regulation Act
-Securities Industry Act
-Mutual Funds Act
-External Insurance Act
-Financial and Corporate Service Providers Act
-Financial Transactions Reporting Act.
The MOU was signed in the recognition of a general need to harmonise regulatory practices in The Bahamas, in order to minimise instances of supervisory overlap, and to foster greater efficiency in the regulation and supervision of financial institutions. Included in this is the harmonisation of standards and practices for licensing and registration, and on-site examinations. The document governs arrangements for cooperation and collaboration amongst the signing agencies.