Bahamas Asset Recovery

Legal Floris LLC

The Bahamas is a well-established, respected and sophisticated international financial center that houses over 25.000 International Business Corporations and more than 250 licensed financial institutions and trust companies. As such, global entrepreneurship and international business utilizes the local infrastructure and supports the Bahamian economy. To create a favorable and inviting ecosystem for international and non-resident corporate activities, the Bahamas adopt a tax neutral system for exempted companies. It follows that sales, income and companies tax, capital gains, and inheritance tax is non-existent.

A population of 385.000 and an estimated GDP per capita of 33.500 Bahamian dollar, falls short with the exceptional number of foreign companies and assets held in the local financial institutions. To accommodate this skewed growth, local laws are tailored to early intervention and appropriate resolution of financial institutions in distress. The local ecosystem also has its influence on the deposit insurance fund that can only cover deposits in Bahamian dollar because the impact, exposure and further consequences a failure of a non-resident supervised financial institution can have on society.

Most business activities executed via companies registered in the Bahamas are legitimate. Sometimes ventures fail and fraud happens anywhere, the Bahamas is no exception. However, serious fraudsters seek locations for incorporation and fiscal establishment where the rules are weak and the chance of legal punishment is little. The Bahamas is not such jurisdiction. Although International Business Companies can benefit from several attractive corporate measures, the legal and regulatory framework to start and maintain an international and non-resident company are quite strong.

Supervised Financial Institutions and Bank Holding Companies active in the Bahamas should apply with the Central Bank of the Bahamas for a bank and trust license. Periodic review of compliance with the Banks and Trust Companies Regulation Bill of 2020 grants the Central Bank of the Bahamas with several elaborated powers. Licenses can be temporarily suspended and financial institutions may be placed under statutory administration pending a probe into the feasibility of the bank. Such was recently disclosed in the matter of Lucayas Bank where the capital position of the bank was insufficient due to incorrect spending by senior bank management of the previous owner. The complexity of the Lucayas case reveals a frequent challenge of the global financial system and seeks to answer how capital injections of financial institutions under resolution can be resolved.

001 646 513 2855 – USA
00371 678 81974 – Latvia
00357 25 057 544 – Cyprus
00352 20 301970 – Luxembourg

[email protected]
[email protected]
[email protected]
[email protected]

Registered office:
1013 Centre Rd. Suite 403-A
Wilmington, 19805
Delaware – USA

Cyprus office:
Kitiou Kyprianou street 31
3036 Limassol – Cyprus

Postal address:
PO Box 50472
3605 Limassol – Cyprus