Madam Speaker,
As I rise today, I am reminded of how far our nation has come in strengthening our financial services sector and restoring our standing in the world.
When this administration took office in 2021, our international reputation had suffered self-inflicted blows thanks to poor decision-making by our predecessors.
We inherited a nation that was hurtling toward blacklists and graylists.
We encountered international relationships that were not fully realized.
And, even worse, our predecessors had a track record of publicly disparaging The Bahamas on the world stage.
We were following an administration that spoke poorly of its own people and institutions, which weakened global confidence and investor trust.
Fortunately, Madam Speaker, where our predecessors saw negativity, we saw potential.
Where they gave in to pessimism, we found purpose.
Where they allowed blacklists to hinder us, we saw opportunities to rebuild and to rise.
From the beginning, this administration made it a priority to repair our international standing through steady work and consistent engagement.
We re-engaged and re-doubled our efforts in coordination with international partners like the OECD, the European Union, and the Financial Action Task Force, rebuilding trust through transparency, dialogue, and decisive action.
That is how we got off the blacklists and graylists.
We strengthened the integrity of our compliance regime by implementing rigorous anti-money laundering and counter-financing of terrorism standards.
And we modernized reporting frameworks and enhanced information exchange across jurisdictions.
These efforts produced positive results.
We secured the removal of The Bahamas from blacklists, and we restored our reputation as a cooperative and credible jurisdiction.
In doing so, we made a clear statement to the world that The Bahamas is ready, able, and willing to set the highest standard for financial services and investment.
The results speak for themselves.
Our financial services industry is booming, and we are now expanding our reach to previously untapped markets.
In fact, we are hosting the first-ever Bahamas Asia Forum two weeks from now, where investors in Asia will learn all about the advantages of investing and managing wealth in The Bahamas.
We’ve brought in billions and billions in investments throughout our archipelago.
We’ve grown the economy year after year.
And we have strengthened the government’s fiscal standing, taking this nation from record high deficits and record debt-to-GDP to the lowest debt-to-GDP ratio we’ve seen in years, and our first-ever projected budgetary surplus for this fiscal year.
The international agencies have seen this progress.
They’ve responded with credit upgrades and positive reviews. Moody’s gave us our first positive outlook in over 17 years. The IMF called our recovery “remarkable.”
More good news is coming in each day as we turn the page on the failures of our predecessors.
But Madam Speaker,
Our work did not stop with the repair of our reputation.
We also identified a status quo within the bodies that create current global standards that we could not accept.
For too long, small nations like ours have been subject to international rules written without our input. These rules often fail to account for our realities and our sovereignty.
In response, we have championed the call for a United Nations Convention on International Tax Cooperation, ensuring that every country, large or small, has a seat and a voice in shaping international tax and compliance standards.
As a result, we have been given access to discussions where we previously had no voice.
Our Attorney General now sits on the UN Committee with direct responsibility for creating the future of International Tax Cooperation.
This was a direct result of our advocacy as a credible voice, aligned with regional and international partners to fight for a fairer future for small island financial services jurisdictions.
At the same time, we are fighting for change on other fronts, as we tackle the most pressing issues facing us that necessitate action on a global scale.
Climate change is one of those priorities.
I would like to take a moment, Madam Speaker, to acknowledge the destruction caused by Hurricane Melissa across our region. This powerful superstorm has brought hardship to many of our Caribbean brothers and sisters, particularly the people of Jamaica and now Cuba.
We extend our solidarity to them in their time of need, just as they stood with us in the aftermath of Hurricane Dorian. The Caribbean is a family, and in moments like these, that truth becomes clear.
When one of us hurts, we all feel the pain.
To the people of the southeastern Bahamas, who are now enduring the initial impacts from this storm, I want to assure you that your government stands with you.
The relevant agencies have been mobilized to provide relief and support, and we will continue to monitor the situation closely.
As Bahamians, we know the toll these storms can take. Yet we also know the resilience of our people. We have prepared for this moment. And one thing is certain: whatever happens, we will rebuild, recover, and rise again.
Hurricane Melissa is a stark reminder that climate change is not a distant threat. It is a present and pressing reality.
We will continue advocating for climate justice on the world stage, demanding fair financing, and joining with other small island states to insist that the global community acts with urgency, compassion, and fairness.
I am confident that we will get results from our advocacy.
You see, Madam Speaker, our progress in restoring our nation’s standing comes from a belief that The Bahamas is capable, The Bahamas is worthy, and The Bahamas is ready to lead.
In this era, we need leaders who see the best in us and the best for us.
That perspective drives our administration.
It fuels our optimism and our belief that our voice will be heard, our actions will be felt, and our consistent efforts will make a difference for The Bahamas and small island states everywhere.
And that is why today, when it comes to financial sector compliance, The Bahamas stands among an elite group of nations.
We were the sixth country in the world to be declared largely compliant with all 40 FATF Recommendations.
Earlier this year, we passed a compendium of financial services laws that further strengthened our compliance with both FACTA and OECD standards.
This administration sees compliance as a competitive advantage. It is a mark of excellence and discipline that reinforces our global credibility.
When investors choose The Bahamas in 2025, they are choosing a nation with no blacklists to worry about, a strong and respected global standing, and an economy that is growing year after year.
They are choosing a jurisdiction that meets the highest standards, and a country with no lingering questions and no clouds over its reputation – just a bright future ahead of us.
That brings us to the Bill before us today: the Automatic Exchange of Financial Account Information (Amendment) (No. 2) Bill, 2025.
Madam Speaker,
The Bahamas underwent the second round of effectiveness assessment by the OECD during the month of July 2025. The onsite assessment took place at the Ministry of Finance’s Legal and Regulatory Affairs Unit.
The Assessment Team, together with representatives from the Securities Commission, Central Bank, Insurance Commission, and other key stakeholders, engaged in meaningful dialogue regarding The Bahamas’ implementation of the Standard for the Automatic Exchange of Financial Account Information.
The discussions focused on the implementation of an effective administrative compliance framework.
When The Bahamas made a commitment to implement the Standard for the Automatic Exchange of Financial Account Information in 2014, we agreed to join forces and cooperate with Partner Jurisdictions in the fight against tax evasion.
The commitment process to implement the Standard for the Automatic Exchange of Financial Account Information involved several building blocks.
Over the past 11 years, The Bahamas has been putting the blocks in place to build a formidable exchange regime capable of detecting illicit financial flows and tax evasion schemes that undermine revenue collection.
In 2016, The Bahamas’s domestic legislative framework was implemented with the enactment of the Automatic Exchange of Financial Account Information (“AEOI”) Act, 2016.
The Automatic Exchange of Financial Account Information Regulations followed shortly thereafter in 2017.
We signed the Convention on Mutual Administrative Assistance in Tax Matters (“the MAC”) on the 15th December 2017 and the Multilateral Competent Authority Agreement (“MCAA”) on 13th December 2017.
However, Madam Speaker, the Standard not only calls for a strong legislative framework, but also calls for an effective administrative compliance framework to be in place.
This framework enables us to monitor and supervise individuals and Financial Institutions to ensure adherence and compliance with the law, prevent circumvention of the Standard, administer and enforce penalties for non-compliance, and make sure taxpayers fulfill their obligations.
Madam Speaker,
During the onsite Assessment, the Assessment Team recognized that The Bahamas has a CRS AEOI compliance strategy in place, which is still evolving, but noted that we need to further develop our administrative compliance framework.
The amendments we are debating today essentially empower Designated Supervisory Authorities (“DSAs”) charged with the responsibility of conducting compliance and investigation activities, such as audits and onsite visits to Financial Institutions, to ensure that they are reporting in a timely manner, to inspect and verify documents and records.
The compliance activities also extend to ensuring that self-certifications are being collected and that the information reported in the CRS AEOI Reporting portal is correct and accurate.
The Bahamas is also under an obligation to ensure that Financial Institutions and persons are aware of potential circumvention schemes, including the risks presented by Citizenship by Investment and Residence by Investment schemes to prevent misuse and address it when detected.
Madam Speaker,
Building an effective compliance strategy has its challenges and may seem like a mammoth task, but the Designated Supervisory Authorities (“DSAs”) identified by this Bill, consisting of the key regulatory bodies like the Central Bank of The Bahamas, the Securities Commission of The Bahamas, and the Insurance Commission of The Bahamas, are equipped with the skill and knowledge to help safeguard the integrity of the taxation system.
They will be provided with the necessary powers, via this amendment to the Bill.
That, in essence, is the major change we are introducing through this Bill.
It is noteworthy, however, to mention that the Bill also seeks to amend the existing Section 13 on Excluded Accounts to ensure that the description of the said accounts aligns with the Common Reporting Standard.
The Bill provides that administrative penalties collected under the principal Act must be paid into the Consolidated Fund. In addition, the Bill also provides for appeals, whereby an aggrieved person may appeal decisions made under the Act to the Supreme Court.
Madam Speaker,
With approximately 160 Jurisdictions involved and participating in the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, The Bahamas will continue to honour the commitments made in 2014, and carry on the building of relationships and trust among other Jurisdictions.
Together, these provisions enhance regulatory clarity, strengthen oversight, and improve the overall administration of the Act.
Madam Speaker,
This administration remains committed to maintaining and strengthening our AML/CFT/CPF frameworks, our sectoral regulations, and our reputation for transparency and good governance.
We are determined to uphold the highest standards in financial services.
The Bahamas has proven that a small nation can lead the way.
And we have shown that compliance and growth can advance together.
Today, when The Bahamas speaks on the global stage, we do so with credibility as one of the most successfully compliant nations in the world.
As we continue to chart our course as a global leader in financial services, we will remain guided by our conviction that the best days for our financial services industry, our economy, and our people still lie ahead of us.
I still so move.
Thank you, Madam Speaker.