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Bahamas Strengthens Banking Regulations for Cross-Border Transactions

The Securities Commission of the Bahamas has recently updated its banking regulations to require cryptocurrency businesses to adhere to strict guidelines for cross-border transactions. The new rules aim to enhance transparency and prevent illicit activities.

Minimum Threshold for Travel Rule in Bahamas

According to Section 4(2) of the DARE Rules 2022, all crypto businesses operating in the Bahamas must comply with the Travel Rule requirements. This means that they are required to collect and share personal identifiable information (PII) for every transaction, regardless of the amount.

The minimum threshold for the Crypto Travel Rule in the Bahamas is 1,000 BSD, meaning that VASPs must provide a wider scope of PII for transactions above this amount. However, the regulatory authority emphasizes that Travel Rule information is required for every transaction, regardless of the amount.

Personally Identifiable Information Required for Travel Rule

According to Sections 4 and 7 of the Financial Transaction Reporting Wire Transfer Regulations 2018, VASPs are required to collect and share the following PII:

  • Originator Information:
    • Name
    • Account number (if an account is used)
    • Date and place of birth
    • National identity number
    • Customer identification number
  • Beneficiary Information:
    • Name
    • Account number (if an account is used)

For cross-border wire transfers below 1,000 BSD, VASPs are only required to provide limited PII.

Differences in Customer PII Requirements for Cross-Border Transfers

Yes, there are differences in customer PII requirements for cross-border transfers versus domestic transfers. Cross-border transfers require a wider scope of information transmission for transactions above 1,000 BSD, while domestic transfers may be accompanied solely by the account number or a unique transaction identifier.

Non-Custodial or Self-Hosted Wallet Requirements

The regulatory authority has not specified any requirements for non-custodial or self-hosted wallets in the Bahamas.

Choosing Notabene for Crypto Travel Rule Compliance

In light of the updated regulations, choosing a reliable and compliant solution is crucial. Notabene offers a comprehensive crypto Travel Rule compliance platform that helps VASPs navigate the complexities of cross-border transactions and ensure full regulatory adherence. With its robust features and expert support, Notabene can help your business stay ahead of the curve and maintain a competitive edge in the market.