Open a Bank Account in Bahamas

An Overview of Open a Bank Account in Bahamas

The Bahamas has always been depicted in movies, and novels as an economy with free-market banking often used for abusing tax liabilities. It is depicted as a mafia cleaning machine or as a bank secrecy hub. Majorly reflecting a negative image of its banking system. However, it is not so now. The Bahamas has shifted to a clean and strict banking system. The banking system has become serious about compliance. When compared to other offshore financial centers, it has suffered less reputational damage as compared to others. After the Panama Papers, the world is moving towards stricter rules and increasing compliance. Banks especially in smaller countries are under the risk and pressure of losing correspondent bank relationships. Therefore, they are shifting towards a clean system. Some people might wonder if it is even beneficial to bank in the Bahamas. Here we are to remove all your confusion! There are numerous reasons why people should choose to bank in the Bahamas, they are as follows

• Bahamian banks may be safer and better than your home country
• Executives at Bahamian banks are more reliable and competent
• Friendly jurisdiction for no-resident individual accounts
• People from certain backgrounds are allowed to open a bank account remotely
• Foreign and offshore companies can open an account in the Bahamas
• Wealth Management and trust services are available in the Bahamas
• High level of secrecy ensures the safety of your personal data
• Quick opening of account ensures seamless conduct of financial transactions
• Anyone can open a private or corporate settlement and savings bank account and no special recommendations are required
• The cost of maintenance depends on the amount of funds contributed to the bank.

necessary papers required for opening a bank account in the Bahamas

• Duly filled out the Bank application form
• International Passport with notary certification
• Government-issued identification
• Proof of Residence such as a utility bill
• Bank Statement
• Tax ID from the country of residence
• Letters of recommendation from partners or banks
• Confirmation regarding the legality of the source of funds
• Citizenship status

Procedure to Open a Bank Account in the Bahamas

The Bahamas has a well-equipped banking system. Most banking transactions in The Bahamas are “offshore banking” meaning thereby that most of the banking activities are conducted in foreign currencies and are carried out by non-residents. This makes it easy for foreign nationals to set up bank accounts.

Find the Right Bank depending on your requirement

The first step towards opening a bank account is choosing the right bank for you. To identify the right bank account, you have to determine your needs. As the Bahamas is a financial hub, numerous banks operate internationally. International Banks operating in the Bahamas are

• HSBC
• Citibank
• Barclays
• Scotiabank

Select the Type of Bank Account

Various types of bank accounts are available in the Bahamas. You have to choose whichever type of bank account from a current account, savings account, or off-shore account.

Fill Out the Application Form

Once you have decided on the type of bank account to open, you have to fill out the application form of that bank intimating your interest in opening a bank account.

Submit the requisite necessary papers with the Application form

Once you have filled out the application form, submit the required necessary papers along with it. The required necessary papers vary from bank to bank and on the type of account.

Wait for the approval from bank

It usually takes 3-5 business days for a bank to verify your necessary papers and open your bank account.

Deposit the initial amount to start operating your business

Once the bank has opened your account, you will have to deposit the initial amount to start operating your account. The initial deposit usually ranges from USD 10,000 to 250,000 depending upon the bank and the type of bank account you want to open.

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What are some of the Major Banks in the Bahamas?

Central Bank of the Bahamas

This bank regulates the Bahamian banks. Some of the significant operations performed by the Central Bank are

• Maintaining the ratio of the Bahamian dollar with the US dollar.
• Controlling foreign currency, foreign exchange, gold, and securities.
• Issuing coins and banknotes.

Commercial Banks in the Bahamas

There are 8 commercial banks in the Bahamas

• Citibank
• The Finance Corporation of Bahamas
• First Caribbean International Bank (Bahamas) Ltd.
• RBC Royal Bank (Bahamas) Limited
• Bank of the Bahamas Ltd.
• Commonwealth Bank Ltd.
• Scotiabank (Bahamas) Limited
• Fidelity Bank (Bahamas) Ltd

Benefits of Opening a Bank Account in the Bahamas

One of the largest offshore Financial Sector

The Bahamas is the 4^th largest offshore financial sector across the globe. The Banking sector is well capitalized with a base of over $200 billion and a capital-to-asset ratio of 11%. The country has a stable financial center whether it be for wealth management, private banking or investment opportunities.

Understanding of International Business

Banks in the Bahamas have a long history of dealing with international businesses and offshore finance. They are proficient in vetting foreign entities, unlike many banks across the globe.

Non residents and Foreign Companies can open a bank account in the Bahamas

Certain banks in the Bahamas accept non-residents and foreign companies to open bank accounts. For opening a bank account in the Bahamas you just need to know which bank you should approach.

Remote opening of bank account

For opening a bank account in the Bahamas, you don’t have to be physically present at the bank. You can do so remotely. What you need to know is which banks accept remote applications.

Compliance with rules

As the Bahamas is a large offshore financial center, it has a lot to lose if it doesn’t comply with the rules. They have to adapt to the increasing regulations and compliance standards. The banks in the Bahamas are moving from secrecy towards transparency to comply with the rules and match international standards.