BAHAMAS Law and Practice Contributed by: Dwayne Whylly, Kamala Richardson-Deal and Nastassia Rigby-Rodriguez, Glinton Sweeting O’Brien
12.3 Responsibility for Losses The circumstances in which a fintech provider could be responsible for losses suffered by a customer are not determined by a single rule. The matter turns on the relevant regulatory framework, the allocation of risk in the governing agreements, and the factual con - text in which the loss arises. Liability would typically stem from breaches of duty, either under contract or tort, where the standard applicable could include neg - ligence, gross negligence, wilful misconduct or fraud. Fintech service providers typically seek to limit their liability contractually through their general terms and conditions, waivers for the use of their services or platform, or specific agreements with customers.
• a person makes a false or dishonest statement, presenting it as true; • the injured party relies on that false or dishonest statement; and • the injured party suffers a loss as a result of their reliance on the false or dishonest statement. Fraud does not have a special or prescribed definition in financial services and/or fintech; the general defini - tion under criminal law is applied. 12.2 Areas of Regulatory Focus The regulators have played close attention to: • relationship investment scams, eg, crypto-invest - ment scams and romance scams; • digital assets fraud; • unregulated investments; • securities fraud;
• advance fee fraud; • Ponzi schemes; and • pyramid schemes.
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