AUTHORISED DEALER:
An authorised dealer is a bank which has been authorised by the Central Bank to deal in gold and all foreign currencies, and for this purpose can open and maintain accounts in such currencies, within the limits laid down in Exchange Control Notices issued by the Rank. Under authority delegated by the Central Bank, an authorised dealer can approve certain applications for foreign currency within specified currency and specified limits.
AUTHORISED AGENT:
An authorised agent is a bank or trust company authorised by the Central Bank to deal in Bahamian and foreign currency securities and to receive securities into deposits (i.e. to act as custodians) in accordance with the terms of Exchange Control Regulations Act and Exchange Control Notices issued by the Central Bank.
RESIDENT:
A resident status allows a bank and/or trust company to deal only in Bahamian Dollars, but operations in foreign currencies require Exchange Control authorisation. Trust companies with resident status are allowed to deal in foreign currency securities on behalf of non-resident customers.
NON-RESIDENT:
A non-resident designation permits a bank and/or trust company to operate freely in foreign currencies, but Exchange Control approval is necessary' to operate a Bahamian Dollar account to pay local expenses.
PUBLIC LICENSEE:
A public bank and/or trust company is one which is permitted to carry on banking and/or trust business with members of the public.
RESTRICTED LICENSEE:
A restricted bank and/or trust company is one which is allowed to carry on business for certain specified persons which are usually named in the licence.
NOMINEE TRUST LICENSEE:
A nominee company is a restricted licensee which holds securities and other assets in its name on behalf of clients of its parent bank or trust company, but carries on no other trust business.
NON-ACTIVE LICENSEE:
A non-active company is one which is either in voluntary liquidation or wishes to keep the word bank or trust in the company's naiiie even though it is not carrying on any banking or trust business.
MINIMUM CAPITAL REQUIREMENTS OF LICENSEES UNDER THE BANKS AND TRUST COMPANIES REGULATION ACT CHAPTER 287
PUBLIC CATEGORIES
Bank & Trust $1,000,000.00 Bank $1,000,000.00 Trust $1,000,000.00
RESTRICTED CATEGORIES
Bank & Trust $100,000.00 Bank $100,000.00 Trust $100,000.00 Nominee Trust $ 10,000.00NON-ACTIVE CATEGORIES
Bank & Trust Non Stipulated Bank Non Stipulated Trust Non Stipulated
ANNUAL FEES PAYABLE UNDER THE BANKS AND TRUST COMPANIES BEGULATION ACT CHAPTER 287
CATEGORIES OF LICENCES
Authorised Dealer & Authorised Agent $160,000.00 Authorised Dealers $100,000.00 Authorised Agents $ 60,000.00 Public Bank & Trust $ 25,000.00 Public Bank $ 25,000.00 Public Trust $ 25,000.00 Restricted Bank & Trust $ 5,000.00 Restricted Bank $ 5,000.00 Restricted Trust $ 2,500.00 Restricted Nominee Trust $ 2,500.00 Non-Active Bank & Trust $ 1,000.00 Non-Active Bank $ 1,000.00 Non-Active Trust $ 1,000.00
BANKING LEGISLATION OF THE BAHAMAS
Two main legislative acts govern the activities of offshore banks and trust companies - the Banks Act and the Banks and Trust Companies Regulation Act. It is useful also to become acquainted with the provisions of several other acts which are related to the management of financial institutions in The Bahamas. These are listed below together with their costs.
LEGISLATION COST
Banks Act $ 2.80
Banks Order [Re:Sec. 8] $ 1.20
Banks and Trust Companies
Regulation Act $ 8.00 These pieces of legislation
may be obtained
Amendment No. 24 of 1989 $ 9.50 by writing to:
S.I. No. 56 of 1987 $ 2.00 Government Publications Office
Central Bank Act $ 7.20 P. O. Box N-7147
Amendment No. 5 of 1990 $ 3.80 Nassau, BahamasExchange Control
Regulations Act $ 1.60 Phone (242) 322-2410
Exchange Control
Regulations $21.20
Companies Act, 1992 $27.60
Amendment No. 24 of 1993 $ 9.40
Amendment No. 28 of 1994 $ 5.25
Amendment No. 30 of 1995 $ 2.00
Cheques or drafts should be made payable to the Public Treasury but forwarded to the above address. Please include an additional $20.00 for airmail postage.
In this Schedule "applicant" means the applicant for a licence under section 4 of this Act
PART I
Particulars to be supplied by every applicant for a licence
1.Name of the bank or trust company.
2.Address of head or registered office.
3.If head or registered office is outside the Colony-
- Address of principal office in the Colony. Name of the officer who is to be the bank's or trust company's authorised agent in the Colony. Name of the other officer who in the absence or inability to act for the officer named under (b) above is to be the bank's or trust company's authorised agent in the Colony.
PART II
Additional particulars to be supplied by applicants for licences other than banks or trust companies specified in the Schedule to the Act
1. Name, address and professional qualifications of Auditor or Auditors.
2. Full names, with addresses, nationalities arid references, of all persons who are directors, partners, managers, or officers.
3. Names, with addresses arid nationalities, of all persons who are shareholders.
4. Names of all subsidiary companies of the applicant with addresses of their registered office's.
5. Copy of the Act, Charter, Certificate of Incorporation or Memorandum of Association arid Articles of Association or Partnership Agreement of the applicant, as may be appropriate, verified by a statutory declaration made by a director, secretary' or partner arid duly authenticated as follows:-
- in the case of a company incorporated in the Colony, certified in accordance with the provisions of section 15 (4) of the Companies Act;
- in the case of a foreign company certified and authenticated under public seal of the country, city or place under the law of which such company has been incorporated
- in any' other case, authenticated in like manner to a deed or document when required to be registered under the provisions of the Registration of Records Act.
7. Status for the purposes of the Exchange Control Regulations Act and ally Regulations made thereunder arid in force at the date of the application.
8. True and full yearly statement of its accounts certified by a director arid the auditor that such statement is properly drawn up so as to exhibit a true and correct view of the state of the applicant's affairs in respect of:-
- the accounts of the last financial year, and
- the accounts of the penultimate financial year.
10.Statement of capital of any other company held directly or through a subsidiary or a nominee, as an asset of applicant.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
