Central Bank of The Bahamas Imposes Stricter Record-Keeping Requirements on Managed Licensees
The Central Bank of The Bahamas has announced new requirements for managed licensees to maintain accurate and up-to-date records, aimed at strengthening financial regulation in the country.
New Guidelines for Managed Licensees
According to the bank’s latest guidelines, managed licensees must establish a comprehensive record-keeping system that meets international best practices. This includes:
- Maintaining separate records from those of their parent company or other licensees
- Ensuring that all client relationships and transactions are properly documented
- Establishing a management agreement detailing the responsibilities of both parties
The guidelines also specify that managing agents must be approved by the Central Bank and demonstrate sufficient experience and resources to act as such.
Physical Facilities Requirements
In addition, managed licensees must maintain physical facilities necessary for the administration of their affairs, including:
- Dedicated office space
- Secure storage facilities
- Appropriate communications equipment
The Inspector will review and approve all record-keeping methodologies and arrangements to ensure compliance with these new requirements. Failure to comply may result in regulatory action.
Minimum Frequency of Record Updates
To facilitate effective monitoring and supervision, managed licensees are required to update their records at the following minimum frequencies:
- Detailed trial balance: weekly
- Adjusted trial balance: monthly
- Month-end balance sheet: monthly
- Monthly income/expense statements: monthly
- General ledger report: monthly
- Correspondent account statements and reconciliations: monthly
- Schedule of related parties: monthly
- List of current credit lines: monthly
- Lists of negotiated and non-negotiated letters of credit: monthly
- Demand and fix deposits maturity schedule: monthly
Aim of the New Requirements
These new requirements aim to enhance transparency, accountability, and stability in the financial sector. The Central Bank will closely monitor compliance with these guidelines to ensure a robust and resilient financial system in the Bahamas.
By implementing these stricter record-keeping requirements, the Central Bank is committed to maintaining a strong regulatory framework that protects the integrity of the financial system and ensures the trust of customers and investors.