NASSAU, Bahamas, CMC – The Bahamas government, on Wednesday, said that, despite undertaking all the necessary measures to ensure that the country is not blocked as a tax haven, it has nonetheless identified a status quo within the bodies that“create current global standards that we could not accept”.
Prime Minister Phillip Davis, speaking in Parliament on the Automatic Exchange of Financial Account Information (Amendment) Bill, told legislators that for too long, small nations like his have been subject to international rules written without their 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 at the table 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.”
Davis said that this is 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,” he said, adding that this is why today, when it comes to financial sector compliance, The Bahamas stands among an elite group of nations.
He said that the country is now the sixth in the world to be declared mainly compliant with all 40 Financial Action Task Force (FATF) recommendations and that earlier this year, the government passed a compendium of financial services laws that further strengthened the country’s compliance. Standards.
”When investors choose The Bahamas in 2025, they are selecting a nation with no blocklists 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.”
Prime Minister Davis said that the legislation before the Parliament follows the second round of effectiveness assessment by the OECD during July 2025, and that the discussion was meaningful regarding the country’s implementation of the Standard for the Automatic Exchange of Financial Account Information.
He said the Standard not only calls for a strong legislative framework but also for a practical administrative compliance framework.
“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.”
Prime Minister Davis said that during the onsite assessment, it was recognized that The Bahamas has a CRS AEOI compliance strategy in place, which is still evolving, and that we need to develop our administrative compliance framework further.
“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 promptly, to inspect and verify documents and records.”
He said that compliance activities also include ensuring that self-certifications are collected and that the information reported in the CRS AEOI Reporting portal is accurate.
Prime Minister Davis said 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.
But he acknowledged that building an effective compliance strategy has its challenges and may seem like a mammoth task. Still, the DSAs identified by the legislation, comprising key regulatory bodies such as the Central Bank of The Bahamas, the Securities Commission of The Bahamas, and the Insurance Commission of The Bahamas, are equipped with the skills and knowledge to help safeguard the integrity of the taxation system.
He said they will be provided with the necessary powers, via this amendment to the Bill.
“That, in essence, is the significant change we are introducing through this Bill. It is noteworthy, however, that the Bill also seeks to amend the existing Section 13 on Excluded Accounts to ensure that the description of those 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.”
Prime Minister Davis said that, with approximately 160 jurisdictions participating in the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, The Bahamas will continue to honor the commitments made in 2014 and continue building relationships and trust among other Jurisdictions.
“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,” Davis told legislators.
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