NASSAU, BAHAMAS- Parliament has passed the Segregated Accounts Companies Bill, 2025, a comprehensive reform aimed at modernizing The Bahamas’ corporate structure regime and strengthening the country’s appeal as an international financial centre. The Bill, now headed to the Senate, introduces a range of innovations intended to attract investment, facilitate redomiciliation, and create new opportunities for local financial services professionals.
Prime Minister Philip Davis, speaking in Parliament, said the legislation represents “another step forward in strengthening our standing as a world-class financial services centre,” noting that it adds to a series of reforms introduced since 2021 to modernize the jurisdiction.
The updated framework expands on the original Segregated Accounts Companies (SAC) Act of 2004, which allowed companies to establish multiple accounts under a single legal entity, with each account ring-fenced from the others in terms of assets and liabilities. The new bill modernizes that structure and introduces a key enhancement: the Incorporated Segregated Accounts Company (ISAC). Under this new model, each account within a company can now be separately incorporated, gaining legal personality and limited liability.
“This groundbreaking structure strengthens asset protection, simplifies lending arrangements, and aligns our offerings with the most innovative international structures,” said Davis.
The bill also creates a streamlined process for the continuation of foreign entities into The Bahamas as either SACs or ISACs. Companies previously incorporated in other jurisdictions—particularly in Latin America, where regulatory shifts and tax treaty changes are prompting relocation—can now redomicile without liquidation or complex restructuring.
“The Segregated Accounts Companies Bill 2025 positions The Bahamas to capture these opportunities,” Davis added. “We are facilitating a smooth transition for those who want to come to a premier jurisdiction.”
Importantly, the bill opens up the SAC and ISAC frameworks to non-regulated entities for the first time. While segregated account structures have traditionally served investment funds and captive insurers, companies governed by the Companies Act or the International Business Companies Act can now adopt the model, significantly broadening access to these risk management tools.
Increased flexibility is another hallmark of the legislation. The bill introduces comprehensive demerger provisions, allowing segregated accounts within ISACs to transition into standalone entities, merge with other accounts, or move between different ISACs. Entire ISACs can also consolidate or split in response to operational or strategic changes.
“The days of being locked into rigid structures will come to an end,” said Davis. “We can now better meet the bespoke needs of the local and regional client base.”
From a regulatory perspective, the bill requires every SAC and ISAC to appoint a licensed Segregated Accounts Representative, who will serve as the compliance liaison and ensure adherence to administrative and legal obligations. This move is intended to create clear accountability, improve oversight, and support the development of Bahamian financial service providers.
New provisions also enhance creditor protections. Directors must formally attest to solvency before major transactions, and creditors must be notified in advance of any structural changes involving liabilities exceeding $1,000. Such notifications are also to be published in the Gazette. In cases of demergers or continuation, written creditor consent may also be required.
On the transparency front, the legislation builds on 2011 amendments that imposed a five-year accounting record retention requirement and introduced penalties for non-compliance. The 2025 bill codifies stringent recordkeeping obligations, requiring itemised records for each account and the general account, enabling regulators and auditors to determine financial position and compliance at any time.
Non-compliance carries serious consequences. In addition to monetary penalties, companies risk being struck off the register, and directors may face personal liability. “This bill makes it clear: The Bahamas takes transparency and compliance very seriously,” Davis told Parliament.
The Prime Minister also highlighted the digital transformation of corporate services, noting that the newly launched Corporate Administrative Registry Service (CARS) platform will support SAC and ISAC filings, allow for real-time updates, and meet the demands of international clients managing multi-account structures.
Beyond regulatory and structural reforms, the bill is also expected to create new commercial opportunities for Bahamian professionals. Segregated Accounts Representatives, corporate administrators, attorneys, accountants, and insurance professionals will be needed to service increasingly complex structures. “We are, indeed, expanding opportunities for local professionals,” Davis said.
Opposition Shadow Finance Minister Kwasi Thompson, MP for East Grand Bahama, voiced support for the bill but criticized the Davis administration for failing to adequately consult stakeholders prior to its tabling in Parliament.
“Without first consulting again speaks to the type of governance that this PLP government is proceeding with,” said Thompson. “Let me be clear from the outset: the Opposition supports this legislation. We support it because it was endorsed and advocated for by the industry itself—by those who understand its implications best.”
Thompson emphasized that while the bill offers important safeguards for investors and greater legal certainty, enforcement and transparency will be critical. “The very essence of segregated accounts is to protect each client’s assets from the risks and liabilities of others,” he said. “But that promise is only meaningful if it is enforced and clearly communicated.”
He also referenced the FTX collapse as a warning, saying, “We cannot risk repeating history. This legislation must not become another tool to benefit the well-connected or elite financial players at the expense of ordinary investors.”
Thompson urged the government to ensure the new framework includes strong mechanisms for internal reporting, regulatory oversight, investor disclosure, and whistleblower protections.
