Fintech 2026

BAHAMAS Law and Practice Contributed by: Dwayne Whylly, Kamala Richardson-Deal and Nastassia Rigby-Rodriguez, Glinton Sweeting O’Brien

2.7 No-Action Letters Regulators in The Bahamas do not issue no-action letters per se. However, they may, from time-to-time, issue a no-objection letter, indicating that they have no objection to a person carrying on a particular activity in or from within The Bahamas where circumstances have been presented to them that support a conclu - sion that a person does not require a licence under the relevant legislation to conduct such business. 2.8 Outsourcing of Regulated Functions The outsourcing of regulated functions typically requires at least a prior notification to the relevant regulator prior to entering into an outsourcing arrange - ment. Regulators have also issued guidance on pro - visions that material outsourcing agreements must contain. These include: • scope of the arrangement and services to be pro - vided; • service levels and performance requirements; • audit and monitoring procedures; • business continuity arrangements; • default arrangements and termination provisions; • pricing and fee structure; • dispute resolution arrangements; • sub-contracting; • insurance; • liability and indemnity; and • confidentiality, privacy and security of information. The Central Bank also requires an annual summary of a regulated entity’s outsourcing arrangements. 2.9 Gatekeeper Liability Fintech providers are generally not regarded as gate - keepers with responsibility for activities performed on their platform; however, providers are required to ensure, with respect to their own activities, compli - ance with AML/CFT/CPF, and risk management rules and regulations. 2.10 Significant Enforcement Actions Both the Central Bank and the Securities Commission are empowered to commence proceeding to enforce compliance and punish breaches of applicable laws and regulations by its regulated entities. Some of these actions include:

• issuance of compliance directives; • conducting investigations; • conducting hearings; • imposition of sanctions; • commencing court applications to wind up, dis - solve, liquidate or terminate the activities; • commencing court applications for the appoint - ment of a liquidator or receiver; and • imposition of fees and fines. Of note, the Securities Commission exercised its rights of enforcement under the DARE Act 2018 to appoint a liquidator of FTX Digital Markets Ltd (FTX DM). The FTX DM was registered under the DARE Act 2018 to provide a platform for the exchange of digital assets and traditional “fiat” currency. Following FTX Trading Ltd (and over 100 affiliated entities) filing for Chapter 11 bankruptcy in the United States of America, the Securities Commission froze the assets of FTX DM to secure the assets of FTX customers. Thereafter, the Securities Commission appointed a liquidator before the Supreme Court of The Bahamas and FTX DM was placed into liquidation. The liquidation process is still ongoing. 2.11 Implications of Additional, Non- Financial Services Regulations Fintech industry participants are subject to certain non-financial services regulations, including the fol - lowing. • Data Protection (Privacy of Personal Information) Act, 2003 (DPA): the industry participants that col - lect personal data and information in The Bahamas are subject to the DPA. The DPA requires persons that collect and process personal data do so in a manner that protects the confidentiality of such information and the privacy of those individuals. • As will be discussed further in 2.14 Impact of AML and Sanctions Rules , industry participants are required to strictly follow the AML, CFT and CPF rules and regulations. The focus and the enforcement of these rules and regulations do not differ from those of legacy players.

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