Bahamas: The Bahamas As A Financial Centre

When considering an offshore financial centre, one should consider carefully the following elements:

• political stability
• fiscally attractive
• confidentiality
• modern laws conducive to business
• professional infrastructure
• good communications

The Bahamas satisfies all of the above criteria. The Bahamas is a parliamentary democracy styled on the Westminster Parliament and its legal system is patterned on that of Britain.

Although still a member of the British Commonwealth, The Bahamas has been independent since 1973. The government encourages foreign investment and discourages bureaucratic intervention into foreign investors’ affairs.

The Bahamas enjoys complete tax immunity. There are no income, sales, capital gains, withholding, gift or inheritance taxes levied in The Bahamas on either residents or nonresidents. The government relies primarily on customs duties and licence fees for its general revenues.

The common law duty of a bank to keep the affairs of its customers confidential has been codified and expanded by Section 10 of the Banks and Trust Companies Regulation. This duty of confidentiality applies to bank directors, officers and employees and extends to directors, officers and employees of the Central Bank as well as those of all bank’s lawyers, accountants and consultants.

Bahamian Banking, Trust, Company and Insurance laws are modern and flexible in order to promote the use of The Bahamas as a financial centre.

The stable, tax free and personally enjoyable environment has enabled The Bahamas and in particular Nassau, to attract high calibre professional advisers to provide the services required by individuals, corporations and trusts in pursuit of their international business and investment objectives. The Bahamas has established links with major airports throughout the world and enjoys excellent telephone, facsimile, computer, telex and postal communications systems.

Bahamas Capital Management offers the following services to its clients:

• establishing banks and trust institutes
• assisting with establishing bank accounts;
• completing the necessary banking forms;
• preparing the resolutions and incumbency documents;

• acting as Trustee of assets transferred by Settlors for the benefit of specified beneficiaries;
• asset protection trusts;
• acting as Trustee for foreign immigration trusts;
• discretionary or non-discretionary asset management;
• acting as Executor of Administrator of estates;

• incorporation of Bahamian International Business Companies (IBC’s);
• corporate management services including:

1. acting as Registered Agent and the provision of registered office, nominee shareholders, officers and directors;
2. maintaining accounting records;
3. asset management; and
4. providing all corporate administrative functions including minutes of directors and shareholders meetings and full compliance with Bahamian statutory obligations.

Typically our clients will settle a Bahamian based trust using our company as Trustee. As BCM is a Bahamian based, the Settlement, or trust, is usually considered to be resident in The Bahamas.

The common law concept of a trust may be used as a testamentary substitute. In addition to serving as a management vehicle, trusts enable an individual or entity to:

• avoid probate in multiple jurisdictions which may follow diverse procedures and have distinct rules for succession including forced heirship;
• enhance confidentiality by adding a layer of ownership, disclosure of which will not ordinarily be compelled at the transferor’s death;
• collect shares of various foreign entities holding assets around the world into one structure where they can be held and centrally managed in a coordinated manner;
• provide a means for continued management until it is appropriate to turn the trust assets over to the next generation or named beneficiaries;
• protect certain assets from unforeseen events occurring in the jurisdiction of the Settlor’s domicile;
• provide for the disposition of the income from those assets, as well as the assets themselves, during the Settlor’s lifetime, and after his or her death; and
• provide for the management and maintenance of those assets by a responsible Trustee.

• 1 year term
• Share Class B and Share Class F
• Insurance protection for the principal amount invested
• Good returns expected
• You can receive your returns monthly if preferred

We offer a range of investment choices and services in full confidence and privacy. With the execution, clearing and custodial support of our clearing broker and its office in the United States area one stop source for a diverse array of financial products, equities, securities, options and more.

Minimum investment in offshore is US$150,000.00

• Mutual Funds (Offshore and Onshore)
• Hedge Funds (Offshore and Onshore)
• Stocks
• Bonds
• Unit Investment Trusts
• Real Estate Investment Trusts
• Limited Partnerships
• Private Placements
• Initial Public Offerings
• Financial Services Growth Fund
• Growth Fund
• Growth and Income Fund
• High Income Fund
• Tactical Allocation Fund
• Liquid Reserves Fund
• Strategic Income Fund
• Investment Grade Income Fund
• U.S. Government Income Fund
• Low Duration U.S. Government Income Fund
• Global Funds

• Investment Consulting Services
• Portfolio Management
• International Private Account Services
• Investment Banking
• Online Trading
• Custody
• Transfer Agency

For a confidential, private consultation or for greater clarification about any of these matters please contact us and our staff would be pleased to assist you.

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.