NASSAU, BAHAMAS — The Central Bank is lifting the moratorium on new applications for money transmission and payment services providers, with Central Bank Governor John Rolle noting that the sub-sector is in a better position to establish a stable footing with pandemic conditions having now abated.
Governor Rolle said during a press briefing yesterday, “With pandemic conditions abated, this sub-sector is in a better position to establish a stable footing and provide expanded services to the Bahamian public. While money services activities could benefit from some consolidation over the medium-term, however, this sector can also begin to profit from innovative, viable, and sound new business models—though in keeping with strong financial inclusion outcomes.”
He continued: “When the Central Bank suspended the review of applications there was a lot of activity and new entrants in the market. The bank wanted the sector to settle a bit before continuing to entertain and having seen the sector evolve we believe it is time to begin to look again at the business models and proposals coming in rather than continuing to deny any consideration of potential entrants in the market. On the basis of the business models coming forward, I think we would be in a more open position to determine what happens in the market. It is really coming from every ridged poster the bank took when things started to pick towards the end of 2019.”
The Central Bank has extended initially instituted a moratorium on the consideration for payment service providers and money transmission businesses back in September 2022. At the time it was put in place, there were three licensed payment service providers, with two other applications under review.
There were five money transmission businesses with services provided through a network that included 23 agents. Money transmission businesses are licensed and regulated under the Banks and Trust Companies Regulation Act, 2000, the Banks and Trust Companies (Money Transmission Business) Regulations, 2008, and provisions under the Central Bank of The Bahamas Act, 2000.
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