BAHAMAS: The Bahamas has regained global standing through strong financial reforms

As published on: ewnews.com, Thursday 30 October, 2025.

Prime Minister Philip Davis said The Bahamas has “restored its global reputation and regained investor confidence” through a series of financial reforms that have positioned the country among the most compliant jurisdictions in the world.

PM Davis made the remarks in Parliament on Wednesday as he moved for the second reading and passage of a Bill for an Act to amend the Automatic Exchange of Financial Account Information Act—legislation aimed at further strengthening oversight, compliance, and transparency within the financial services sector.

“When this administration took office in 2021, our international reputation had suffered self-inflicted blows,” PM Davis said. “We inherited a nation hurtling toward blacklists and graylists—but where our predecessors saw negativity, we saw potential.”

PM Davis said his government made it a priority to rebuild trust with key global partners such as the OECD, European Union, and Financial Action Task Force (FATF) through “transparency, dialogue, and decisive action.”

Those efforts, he said, led to The Bahamas’ removal from international blacklists and its recognition as a “largely compliant” jurisdiction with all 40 FATF recommendations.

“We strengthened the integrity of our compliance regime, modernized reporting frameworks, and demonstrated to the world that The Bahamas is ready, able, and willing to set the highest standards for financial services and investment,” PM Davis noted.

The Prime Minister credited those reforms with driving renewed growth across the archipelago, reporting “billions in new investments,” continuous economic expansion, and the lowest debt-to-GDP ratio in years—along with what he described as the country’s “first-ever projected budgetary surplus.”

“The international agencies have noticed,” he said. “Moody’s gave us our first positive outlook in over 17 years. The IMF called our recovery ‘remarkable.’”

He added that the upcoming Bahamas Asia Forum, scheduled for mid-November, will mark the country’s first major investor outreach to Asian markets, underscoring growing confidence in The Bahamas’ financial services industry.

The Automatic Exchange of Financial Account Information (Amendment) (No.2) Bill, 2025, empowers key regulators—including the Central Bank, Securities Commission, and Insurance Commission of The Bahamas—to conduct compliance audits and investigations, verify records, and ensure that financial institutions adhere to international reporting standards.

“This legislation strengthens oversight, enhances regulatory clarity, and ensures we remain a trusted partner in the fight against tax evasion and illicit financial flows,” PM Davis said. “Compliance is not a burden—it is our competitive advantage.”

The amendments also align the definition of excluded accounts with the Common Reporting Standard, require administrative penalties to be paid into the Consolidated Fund, and provide for appeals to the Supreme Court.

PM Davis further noted that The Bahamas has been advocating for a United Nations Convention on International Tax Cooperation, ensuring that small nations “have a seat and a voice in shaping international tax and compliance standards.”

“For too long, small nations like ours have been subject to rules written without our input,” he said. “Today, our Attorney General sits on the UN Committee shaping the future of international tax cooperation—a direct result of our advocacy.”

Referencing the regional impact of Hurricane Melissa, the Prime Minister expressed solidarity with affected Caribbean nations and reaffirmed his government’s commitment to global climate justice.

“Hurricane Melissa is a stark reminder that climate change is not a distant threat,” he said. “We will continue to advocate for fair financing and urgent global action.”

PM Davis concluded that The Bahamas’ progress demonstrates that small nations can lead on compliance and governance.

“Today, when investors choose The Bahamas, they are choosing a jurisdiction with no blacklists, a respected global standing, and a bright future,” he said. “Compliance and growth can advance together—and The Bahamas has shown the world how it’s done.”