Bahamas - Apply for a Banking Business license

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Procedure

Apply In-Person

1. To apply for a Banking Business license, the applicant must approach the Central Bank of the Bahamas. Click on the following link to view address details Link
2. Visit the office and get an application form for a licence to carry on banking and/or trust business in the Bahamas from the relevant department.
3. Complete the application form with appropriate information under relevant sections.
4. After filling the application form, make sure to attach all the documents listed in the “Required documents” section of this page.
5. Then, submit it in person to the relevant authority at the office.
6. To process an application, prospective shareholders will be required to attend an interview at The Central Bank or The Bahamas some time during the application process and must submit:
   • a business plan covering five years of financial projections
   • details regarding operational controls to be implemented by the bank
   • a five year pro-forma income statement and balance sheet
7. Once all the internal processes are over, the applicants will be notified with the further instructions regarding the license.

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Required Documents

Prospective shareholders must submit:

• An audited statement of his net worth or any other proof acceptable to the Bank Supervision Department.
• A business plan covering five years of financial projections to the Central Bank of The Bahamas
• Details regarding operational controls to be implemented by the bank to the Central Bank of The Bahamas
• A five year pro-forma income statement and balance sheet to the Central Bank of The Bahamas

Office Locations & Contacts

Central Bank of the Bahamas
P.O. Box N-4868
Nassau, N.P, Bahamas
Email: [email protected]
Phone: +1 (242) 302 2600
Website Link
Contact Link

Bank Supervision Department
Phone: +1 (242) 302-2615
Fax: +1 (242) 356-9897
Email: [email protected]
Contact Link

Eligibility

• The Central Bank of The Bahamas prefers that institutions applying for an unrestricted banking licence be owned by another highly reputable financial institution, or well established entity.
• In the case of an existing bank applicant:
  • The outward authorisation of the relevant government regulatory authority under which it fails should be obtained in writing.(Or)
  • The beneficial ownership must be spread over a minimum of five (5) individuals independent of each other, who will hold the shares in such manner that not one person can have dominating control of the bank.

Fees

Fees payable under the Banks and Trust Companies Regulation Act, 1965:

• Authorised Agents and Authorised Dealers License: $ 160,000.00
• Authorised Dealers License: $ 100,000.00
• Authorised Agents License: $ 60,000.00
• Other Public Institutions License: $ 25,000.00
• Restricted Bank and Trust: $ 5,000.00
• Restricted Bank: $ 5,000.00
• Restricted Trust: $ 3,000.00
• Non-Active Bank and Trust: $ 1,800.00

Note: An annual fee of $1000 is payable on January 1 each year under the Companies Act to The Registrar of Companies, in addition to the fees described above, but only where the Licensee is a Bahamian registered company. This is deductible from the Licence Fee.

Validity

The Banking license needs to be renewed on January 1 each year according to the Companies Act.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

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Processing Time

It can take between three and six months to obtain a licence to conduct private banking business in The Bahamas.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Click on the following link to view the Instructions provided by the he Central Bank of The Bahamas
Guidelines PDF
OR
Guidelines Link

Required Information

PART IParticulars to be supplied by every applicant for a licence.

• Name of the bank or trust company.
• Address of Head or Registered Office.
• If Head or Registered Office is outside the Colony:
  • Address of Principal Offices in the Colony.
  • Name of the Officer who is to be the Bank's or Trust Company's authorised agent in the Commonwealth of the Bahamas.
  • Name of the other Officer, who in the absence or inability to act for the Officer named under (b) above is to the Bank's or Trust Company's authorised agent in the Commonwealth.
• Financial year of the Bank or Trust Company.
  

PART II
Additional particulars to be supplied by applicants for licences other than banks or trust companies specified in the Schedule of the Act.

• Name, address and professional qualifications of Auditor or Auditors.
• Full names with addresses, nationalities and references of all persons who are directors, partners managers or officers.
• Names with addresses and nationalities of all persons who are shareholders.
• Name of all subsidiary companies of the applicant with addresses of their registered offices.
• Copy of the Act, Charter, Certificate of Incorporation or Memorandum of Association and 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 and duly authenticated as follows:
  
  • In the case of a company incorporated in the Commonwealth of The Bahamas, certified in accordance with the provision of Section 15(4) of the Companies Act.
  • In the case of a foreign company and authenticated under public seal of the country, city or place under the laws 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.
• References, including one from a Bank or Trust company.
• Status for the purpose of the Exchange Control Regulations Act and any regulation made thereunder and in force at the date of the application.
• True and full yearly statement of its account certified by a director and 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.
• Statement of assets and liabilities at the end of the month prior to the submission of the application certified by a Director or Senior Officer.
• Statement of capital of any other company held, directly or through a subsidiary or a nominee as an asset of the applicant.

Need for the Document

• A banking license is a legal prerequisite for a financial institution that wants to carry on a banking business.
• Under the laws of most jurisdictions, a business is not permitted to carry words like a bank, insurance, national in their name, unless it holds a corresponding license.

Information which might help

Licensees are required to immediately notify the Inspector of Banks and Trust Companies, if they become aware that a material event (for example, suspicious activities, incidents of fraud, or regulatory enforcement actions) which could have a significant adverse impact on the licensee’s safety and soundness or reputation, has or may have occurred or may occur in the foreseeable future. Please click on the following link to know more Reporting of Material Events and Incidents of Fraud PDF

Other uses of the Document/Certificate

Please explain what are  other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

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Others

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