NASSAU, BAHAMAS – The Executive Entities (Amendment) Bill, 2025, and the Banks and Trust Companies Regulation (Amendment) Bill, 2025, will modernize and strengthen The Bahamas’ financial services sector by enhancing its regulatory framework and ensuring alignment with global standards, according to Prime Minister Philip Davis.
During his contribution to the debate on the Executive Entities (Amendment) Bill, 2025, and the Banks and Trust Companies Regulation (Amendment) Bill, 2025, Davis outlined the importance of the bills in advancing the country’s financial services sector.
“The Bills before us represent another step forward in our journey to modernise this vital pillar of our economy,” said Davis. “These Bills represent our ongoing commitment to excellence in regulating our financial services sector by addressing a specific gap in our current framework.”
He noted that Executive Entities, as established under the Executive Entities Act of 2011, have become an important tool in The Bahamas’ wealth management arsenal, allowing for specialized 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.”
He added that 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 Parliament is the Banks and Trust Companies Regulation (Amendment) Bill. This bill formally defines the concept of a “Qualified Executive Entity” (QEE), which is an Executive Entity 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 Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards as other financial institutions. This includes important Know Your Customer (KYC) requirements to ensure complete transparency regarding all activities and individuals involved, keeping The Bahamas 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. It applies the same oversight, sanctions, and compliance mechanisms as currently used 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,” said Davis.
He further emphasized that The Bahamas has not only met but at times surpassed the highest global standards.
“While we are committed to meeting international standards, we also recognize 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,” said Prime Minister Davis.
The bills represent another important step in the country’s 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,” Prime Minister Davis concluded.
