NASSAU, BAHAMAS: The Securities Commission of The Bahamas plans to take enforcement action against unlicensed moneylenders and credit providers beginning October 1, warning that offenders could face fines of up to $75,000 and four years in prison.
In a notice issued under the Financial and Corporate Service Providers Act, 2020, the regulator directed individuals and institutions offering money lending, payday or cash advances, credit extension or related services without a licence to contact its Supervision Department by September 30 to regularise their status.
“With effect from 1 October 2026, the Commission will pursue all available enforcement measures against persons who continue to conduct money lending or credit extension activity without the requisite licence,” the Commission said.
The licensing requirement applies to non-bank providers offering short-term, consumer and mortgage loans, along with businesses providing in-house financing that allows customers to purchase goods or services through instalment payments. Lay-away arrangements are excluded.
The Commission said the law applies wherever a provider derives all or part of its income from these activities. It also covers services offered online to residents of The Bahamas, regardless of the provider’s physical location.
The transition period for businesses already operating when the Act took effect on December 14, 2020, expired on June 14, 2021. The Commission said anyone now conducting a licensable activity without approval is operating in breach of the law.
Unlicensed operators face a fine of up to $75,000, imprisonment for as long as four years and an additional fine of $1,000 for every day the offence continues. The Commission may also impose administrative penalties and exercise its wider enforcement powers.
“Contacting the Commission to regularise or submitting an application does not constitute a licence [and] does not authorise the commencement or continuation of a licensable activity,” the regulator warned.
It added that engaging with the Commission would not prevent enforcement action concerning past or continuing breaches.
Businesses uncertain whether their lending or credit arrangements require a licence were advised to provide details of their operations to the Commission for assessment.
The notice does not apply to banks licensed under the Banks and Trust Companies Regulation Act, 2020, or credit unions and other credit institutions regulated by the Central Bank of The Bahamas.
