Madam Speaker,
I will begin today, in this honourable House, by expressing my gratitude to the many Bahamians doing excellent work in our financial services sector, and my gratitude – shared by my colleagues – for the opportunity the government has to partner with them in support of the industry.
The Bills before us represent another step forward in our journey to modernise this vital pillar of our economy.
When we look at The Bahamas today, whether we’re talking about our standing in the international community, the health of our economy, or the resilience of our financial services sector, we can see how far we’ve come in a relatively short amount of time.
When this administration took office in September 2021, we inherited an economy in crisis. Our debt-to-GDP ratio had skyrocketed to over 100%, our deficit to GDP ratio likewise skyrocketed to over 13% and our GDP had plummeted after Hurricane Dorian, the COVID-19 pandemic, and fiscal mismanagement.
International rating agencies had repeatedly given The Bahamas a negative outlook, making borrowing more expensive at precisely the time we needed fiscal flexibility. Meanwhile, the financial services sector – our second largest industry – faced numerous threats.
At the time, we were on the precipice of being placed on the European Union’s blacklist due to inadequate economic substance reporting frameworks instituted by our predecessors – and we were soon blacklisted because of those missteps.
Our country was not yet compliant with the Financial Action Task Force’s 40 Recommendations. And our legislative framework was unprepared to address global changes in the financial landscape, from the evolution of digital assets to the global push for minimum corporate income taxes.
In short, Madam Speaker, we faced numerous threats to our financial services sector and our economy.
In just a few years, we led a remarkable turnaround. We’ve grown our economy significantly and reduced our debt-to-GDP ratio from 100% to below 80%, we also reduced our deficit-to-GDP ratio to under 2%, from under 13. This required disciplined fiscal management and a clear vision for our economic future.
We have a lot of work left ahead – we won’t be satisfied until we have an economy that is more inclusive, one that offers more opportunities to more Bahamians. We won’t be satisfied until we can drive the cost of living down, and make sure a life of dignity and security is something all Bahamians can attain.
But it’s important to recognize the progress we’re making, as a country.
Indeed, our efforts have been noticed by international observers, which is why, for the first time in over 17 years, Moody’s has given The Bahamas a positive ratings outlook.
For 17 years, international agencies viewed The Bahamas with caution or pessimism.
Today, they see promise and potential.
And in our financial services sector, we’ve also made important strides forward.
We introduced a comprehensive slate of new and amended legislation to modernise our framework and ensure compliance with evolving international standards.
The DARE Act revisions have positioned The Bahamas at the forefront of digital assets regulation.
And our implementation of the Domestic Minimum Top-Up Tax has aligned us with international corporate income tax standards, while creating a valuable new revenue stream from the biggest and wealthiest international corporations.
We also corrected the previous administration’s missteps in economic substance reporting, securing our removal from the EU’s blacklist.
Under our watch, The Bahamas became just the sixth country in the world to achieve “largely compliant” status with all 40 FATF Recommendations. This is a testament to our commitment to the highest standards of financial transparency and integrity.
Madam Speaker,
We’ve also transformed the infrastructure that supports our financial services sector. The Corporate Administrative Registry Service Portal has digitalised processes that once required in-person visits and paper forms. And our partitioning of the Registrar General’s Office into a Registrar of Records and a Registrar of Companies has allowed us to dedicate focused resources to modernising these crucial functions.
The world of financial services is changing rapidly.
What was innovative yesterday will be obsolete tomorrow. That’s why we’ve stayed nimble, rolling out key amendments to maintain our competitive edge in markets like Brazil (when the once innovative ICONs became outdated), overhauling the business license regime for IBCs, and updating the regulatory framework for our Securities Commission.
This brings me to the two Bills before us today: the Executive Entities (Amendment) Bill, 2025, and the Banks and Trust Companies Regulation (Amendment) Bill, 2025.
These Bills represent our ongoing commitment to excellence in regulating our financial services sector by addressing a specific gap in our current framework.
Executive Entities, as established under the Executive Entities Act of 2011, have become an important tool in our wealth management arsenal. They allow for specialised structures that can perform executive functions such as trustee duties and asset management, providing valuable options for succession planning, family wealth structuring, and asset protection.
At the time when they were introduced, this was a necessary innovation to meet the needs of local clients.
Essentially, Executive Entities allow individuals to bring individuals of their choosing directly into the wealth management process. In doing so, they benefit from limited liability. They also benefit from complete ability to customize to their specifications with no need for beneficiaries, enforcers, or members, introducing much-needed simplicity in governance and ownership. This is a relatively cost-effective and straightforward wealth management solution.
However, our current regulatory framework provides only indirect oversight of these entities.
This is no longer sufficient.
The Executive Entities (Amendment) Bill makes a simple but important change to Section 13 of the principal Act, ensuring that all Executive Entities fall under appropriate regulatory oversight, where before it only applied to licensed agents.
Making this small change has significant implications for strengthening our regulatory framework, as the Central Bank will now have direct oversight over these entities.
The other bill before us is the Banks and Trust Companies Regulation (Amendment) Bill.
This Bill formally defines the concept of a “Qualified Executive Entity” or QEE, which is an Executive Entity that is registered under the Executive Entities Act and meets specific criteria regarding its functions and structure.
Under this legislation, QEEs will be exempt from full licensing requirements but must appoint a Registered Representative and adhere to the same AML/CFT standards as other financial institutions. This includes important Know Your Customer requirements to ensure complete transparency when it comes to all activities and individuals involved, keeping us compliant with the Financial Action Task Force’s recommendations.
The Bill also establishes appropriate fees, which include $5,250 for registration and $3,750 annually. And it applies the same oversight, sanctions, and compliance mechanisms as we currently use for Private Trust Companies.
Together, these amendments ensure that the Central Bank of The Bahamas will have direct regulatory oversight of Executive Entities that function as trustees, while filling an important gap in our regulatory architecture.
This change reinforces The Bahamas’ commitment to preventing money laundering, combating terrorism financing, and upholding the highest standards of financial integrity.
Madam Speaker,
We have met and, at times, even surpassed the highest global standards.
But while we are committed to meeting international standards, we also recognise that these standards must be developed and applied fairly and consistently across all jurisdictions.
That’s why I’m particularly proud that our nation has a strong voice on the international stage pushing for change to the status quo.
Our Attorney General, the Honourable Ryan Pinder, represents us on the Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation. In this capacity, he is playing a crucial role in shaping future international tax cooperation protocols to ensure they are developed and administered fairly.
So, today, as we continue to demonstrate our willingness and ability to meet compliance standards, we are simultaneously working to ensure that these standards evolve in a fair and balanced way.
Madam Speaker,
Our country’s progress isn’t accidental, and it wasn’t inevitable.
Our country’s progress is the result of clear vision and strategic action.
We’ve focused on modernisation, enhanced transparency and compliance, digital transformation, and strengthening investor confidence to make our financial services sector stronger, more resilient, and better positioned for future growth.
In the coming months, we’ll continue to build on the existing legislative foundation, with additional reforms to further strengthen our position as a premier financial services jurisdiction.
Madam Speaker,
The Bills before us today represent another important step in our journey toward financial services excellence.
With their passage, we will strengthen our regulatory framework, enhance our compliance with international standards, and demonstrate our commitment to excellence in regulating the sector.
The Executive Entities (Amendment) Bill, 2025, and the Banks and Trust Companies Regulation (Amendment) Bill, 2025 have my full, unbridled support.
Thank you, Madam Speaker.