Bahamas Compliance Report

Generated 2026-09-22

Partially Regulated

Regulatory Overview

Regulatory Status: Some rules exist but significant gaps; draft legislation or limited guidance
Key Regulator(s): EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism, Securities Commission of The Bahamas
Primary Legislation: submit incorporation documents/fees; IBC Act 2020 applies, DARE Act 2024: Core law (Parts II/III, Sec. 9, 18-21, 33-35); available via SCB, DARE Act, IBC Act 2020: Company incorporation; https://www.scb.gov.bs/legislation/., The Bahamas' Approach to the Regulation of Digital Asset Businesses, Bahamas supporting laws include the Proceeds of Crime Act (as amended), Anti-Ter, Digital Assets and Registered Exchanges Act (2020), Financial and Corporate Service Providers Act (2012)
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Individuals and businesses must comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations.. Businesses (e.g., crypto exchanges or service providers) follow general financial reporting, including annual license fees for International Business Companies (IBCs), but no profit or income tax filings.. Crypto firms need Securities Commission of The Bahamas (SCB) approval under the Digital Assets and Registered Exchanges (DARE) Act 2024 for activities like token issuance, exchanges, custody, or staking.. Securities Commission of The Bahamas (SCB): Oversees digital assets under DARE Act. https://www.scb.gov.bs/. The Central Bank of The Bahamas is the general financial regulator, and the Bahamas imposes no capital gains tax, income tax, or VAT on cryptocurrency transactions (i.e., clear crypto tax guidance exists).

Key Facts

aml The Bahamas has an official government portal at bahamas.gov.bs which serves as the primary gateway for government services and information Official Bahamas Government Website - Services, News & Resou No specific cryptocurrency or digital asset AML legislation, licensing regimes, or compliance requirements are detailed in the official source texts for the Bahamas jurisdiction The Digital Assets and Registered Exchanges Act (DARE Act), the DARE Amendment Act 2024, and any SCB guidelines specific to virtual asset service providers (VASPs) are not available Practical reality cannot be assessed due to the absence of Bahamas-specific crypto/AML regulatory content The official Government of The Bahamas website (bahamas.gov.bs) lists the structure of government including the Executive, Legislative, and Judicial branches but does not enumerate financial regulators or AML authorities in the provided text Official Bahamas Government Website - Services, News & Resou The Securities Commission of The Bahamas (SCB) is referenced as the publisher of the GFSR Countering Proliferation Guidelines dated 25 July 2025, indicating SCB's role in financial services regulation coordination About the Group of Financial Services Regulators (GFSR) No primary AML/CFT laws (e.g., Anti-Money Laundering and Countering the Financing of Terrorism Act, Proceeds of Crime Act), regulations, or official gazette notices for the Bahamas are available FATF or Moneyval mutual evaluation status for the Bahamas is not mentioned in any of the available source documents
enforcement Regulator: Securities and Exchange Commission (SEC) Entity Targeted: FTX Trading Ltd. and Samuel Bankman-Fried (CEO and co-founder). Violation Type: Securities fraud scheme defrauding equity investors. Penalty Amount: Not specified in available results. Outcome: FTX filed for bankruptcy after a spike in customer withdrawals exposed an $8 billion shortfall in accounts. The SEC charged Bankman-Fried with orchestrating a scheme that defrauded equity investors; FTX had raised more than $1.8 billion from investors, including approximately $1.1 billion from about 90 U.S.-based investors. The Securities Commission of the Bahamas subsequently froze assets of one of FTX's subsidiaries.
general Security tokens: Digital tokens mirroring SIA securities, such as those entitling holders to profits, revenues, assets, or distributions from issuers/pools. Asset tokens: Claims against issuers backed by real-world assets, deriving value from underlyings (secured, collateralized, or stability-focused); often securities if investment-like. Investment tokens: Designed for returns, even with utility features; mixed-purpose tokens require case-by-case review. Under the Digital Assets and Registered Exchanges (DARE) Act, 2020, as updated in 2024, categories such as utility tokens, virtual currency tokens, and non-exchangeable tokens are defined and regulated within the DARE framework, not merely excluded under the Payment Systems Act, 2012, or the Securities Industry Act. The Bahamas introduced the DARE Act, 2024, which updated and expanded upon the original DARE Act 2020. SIA, 2011: Referenced in https://www.scb.gov.bs/wp-content/uploads/2023/04/The-Bahamas-Approach-to-the-Regulation-of-Digital-Asset-Businesses.pdf SCB Guidance: https://www.scb.gov.bs/wp-content/uploads/2023/04/The-Bahamas-Approach-to-the-Regulation-of-Digital-Asset-Businesses.pdf
licensing Exchanges: Trading, exchanging cryptocurrencies (fiat-to-crypto, crypto-to-crypto, centralized/decentralized), derivatives, options, broker-dealer services. Custody providers: Custodial services using encrypted keys, wallet services, administration of crypto portfolios, staking. Payment processors: Accepting payments in digital assets, token issuance/ICOs, transactions on behalf of clients. Capital: Minimum requirements vary from $150,000 to $500,000 (exact amount assessed case-by-case by SCB based on business model and risks). AML/KYC: Mandatory compliance with AML/CFT, including risk assessments, reporting violations, KYC procedures; governed by DARE Act (Part III, Sec. 33-35), Comprehensive Review Update Policy, Digital Assets and Registered Exchanges Rules, Anti-Terrorism Act 2018 (ATA), Financial Transactions Reporting Act 2018 (FTRA), Proceeds of Criminal Activity Act. Local presence: Incorporation as an International Business Company (IBC) required, with a registered office/agent in the Bahamas; appointment of local compliance officer, directors, and senior management subject to fitness/propriety evaluation. Other: Corporate governance standards, risk management, technology security, reporting/documentation, operational insurance, data protection. Incorporate legal entity: Register an IBC via Registrar of Companies (submit incorporation documents/fees; IBC Act 2020 applies).
securities Securities and Futures Commission (SCB): The primary regulator for securities and digital assets in the Bahamas. Website: https://scb.gov.bs/ Bahamas Monetary Authority: Oversees financial stability and monetary policy, indirectly influencing digital asset regulations. Digital Assets and Registered Exchanges Act (DARE): Enacted to regulate digital assets and registered exchanges. The Act was published in the Official Gazette of The Bahamas in 2023, establishing the legal framework for digital asset activities. Home - Securities Commission of The Bahamas Securities Industry Act (SIA): Governs securities markets, including those involving digital assets. Operation of registered exchanges for digital assets. Trading in securities that include digital assets. Providing custodial services for digital assets. Submit an application to the SCB detailing the proposed activities, business model, and compliance measures.
status Securities Commission of the Bahamas (SCB) – Website Oversees financial services, including digital assets. Digital Assets and Registered Exchanges Act (2020) – Official Gazette No. 48, 2020 Establishes licensing for digital asset exchanges and DCSDs. Financial and Corporate Service Providers Act (2012) – Official Gazette No. 45, 2012 Provides broader regulatory oversight for financial services. The Bahamas is recognized by the Financial Action Task Force (FATF) as a member with ongoing compliance obligations, though specific digital asset guidance is evolving. Digital Central Securities Depository (DCSD) operations
tax Individuals and businesses must comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. Businesses (e.g., crypto exchanges or service providers) follow general financial reporting, including annual license fees for International Business Companies (IBCs), but no profit or income tax filings. Crypto firms need Securities Commission of The Bahamas (SCB) approval under the Digital Assets and Registered Exchanges (DARE) Act 2024 for activities like token issuance, exchanges, custody, or staking. Securities Commission of The Bahamas (SCB): Oversees digital assets under DARE Act. https://www.scb.gov.bs/ The Central Bank of The Bahamas is the general financial regulator, and the Bahamas imposes no capital gains tax, income tax, or VAT on cryptocurrency transactions (i.e., clear crypto tax guidance exists). Department of Inland Revenue: Handles general taxes (VAT, stamps); confirms no income/CGT. No specific crypto page; see general info at https://www.bahamas.gov.bs/wps/portal/public/gov/government/agencies/department%20of%20inland%20revenue/
travel rule Digital Assets and Registered Exchanges (DARE) Rules: Core rules applying AML/CFT/CPF to DABs, including Travel Rule compliance. [https://www.scb.gov.bs/wp-content/uploads/2023/04/The-Bahamas-Approach-to-the-Regulation-of-Digital-Asset-Businesses.pdf] Proceeds of Crime Act 2018 (POCA), Anti-Terrorism Act 2018 (ATA), and FCSPA Rules 2019: Integrate DABs into broader framework. Originating VASPs: Identify originator, obtain/verify required data, screen for sanctions, retain records, and share with beneficiary VASPs. Beneficiary VASPs: Obtain/hold accurate data and make it available to authorities on request. No mandated technical solution (e.g., interoperability challenges persist globally). Sanctions screening against lists like OFAC, UN, EU is required before transactions.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-21. View full profile