The Bahamas is one of the world’s principal international financial centres. Many of the world’s largest and most prestigious financial institutions have set up branch or subsidiary operations in The Bahamas, taking advantage of the country’s stable political system, modern and accommodating business legislation and skilled workforce.

Over four hundred banks from thirty-eight different countries are currently licensed to do business within or from The Bahamas. The Central Bank of The Bahamas supervises all bank and trust companies, and is responsible for licensing and compliance.

Bahamian law strongly protects the right to confidentiality and privacy of bank clients. Non-residents who do business in The Bahamas also enjoy freedom from exchange controls. The Bahamas has not entered into tax treaties with any country. In addition, the country has no personal or corporate income, capital gains, estate, gift or inheritance taxes.

The regulatory environment is flexible yet responsible. Innovative instruments and legislative programmes allow:

• Ease in offshore corporate formation and administration;
• Protection for trusts established in The Bahamas from regulatory decisions of other jurisdictions;
• Asset protection from future claims for high risk professionals and businessmen.

Recent legislative initiatives include laws governing the establishment of mutual funds, and legislation providing for limited duration companies that are attractive as flow-through entities for tax purposes.

Currently under development is a stock market that will allow closed-end mutual funds to register in The Bahamas. Also, several captive insurance companies are registered in The Bahamas, under the supervision of the Registrar of Insurance Companies. The enactment of anti-money laundering legislation late in 1995 reinforces The Bahamas’ position in the forefront of reputable, secure international financial centres.