Speaking at a meeting of the Bahamas Association of Compliance Officers (BACO) last week, new Financial Services and Investment Minister, Allyson Maynard-Gibson elaborated on the concerns which prompted the Progressive Liberal Party to promise a review of financial services legislation enacted under the previous administration. 
.. 
Inviting comments from organisations within the finance sector on amendments needed to restore the jurisdiction's banking industry to its former glory, and suggestions for streamlining the provision of financial services in the Bahamas, Minister Gibson announced the government's intention to provide a 'red carpet' experience for businesses located in the region, both international and domestic, according to a report in the Nassau Guardian last week. 
. 

. 
Although the Minister announced that the PLP government supports the tougher KYC regulations brought in by the Free National Movement in the wake of OECD pressure and the September 11 attacks, she qualified this by adding that: 
. 
'What we wish to examine more closely is the nature of the financial services provided...what are the risks associated with the particular business areas?' By way of an example, the Financial Services Minister asked: 'Should an account that has had annual transactions not exceeding $20,000 and an average balance less than $250 be subject to the same review as persons operating, say, a number of seven figure accounts in a number of foreign currencies?' 

The International Business Companies Act of 1989 brought about the formal recognition of the Bahamas IBC.  Since that time, additional legislation in 1995 regarding Mutual Funds has made the Bahamas a favored domicile for both individual investors and offshore mutual fund firms alike.  Here are some key points regarding the creation of a Bahamian IBC:  
.  
Language – English is the official language of The Bahamas and therefore all legal documents are drafted in English.  For some individuals, this in and of itself is an important point when looking for a jurisdiction.    
.  
Name of the Company - Any name can be selected that is of course not currently in use or registered to another company.  The words “Limited”, “Corporation”, “Societe Anonyme”, “Gesellschaft Mit Beschrankter Haftung”, “Incorporated” or the related abbreviations for above terms may be used to indicate that the Bahamas IBC is in fact an incorporated entity.  
.  
However, no company name or title can contain the terms “Assurance”, “Bank”, “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Imperial”, “Insurance”, “Royal”, “Municipal” or “Trust”.   
.  
Directors – One unique aspect of the Bahamas IBC is that only one natural person or juridical person is required for a directors position.  Unlike some other jurisdictions that may require three persons to be named as directors, the Bahamas require that there be only one.  Of course, it is permitted to have as many directors as may be desired.  The names of directors or officers are not public record.        
.  
Shares – Shares may be issued in bearer or registered form.  Regardless of the method desired, there is no registration process with respect to shares nor is there disclosure in the public record of the company shareholders.   
.  
Bank Accounts and Banking Secrecy - Many clients may wish to establish a bank account in the name of their Bahamas IBC and of course this can be easily accomplished.  Like most modern banking jurisdictions, the client will be required to submit a photocopy of their passport and a banking reference.   
.  
One important point regarding Bahamian banking secrecy is that banking institutions are prohibited from divulging a clients or accountholders information to a third party without the express consent of the account holder or under a Bahamian court order.  However, banking institutions are permitted to divulge that a particular client or company does in fact have an account with that bank.  While the bank cannot, under Bahamian law, divulge details or account balances, they certainly can divulge who their account holders are.  This is an important difference between what banking secrecy actually means in the Bahamas in comparison to other jurisdictions.   

While we generally have some positive things to say about the Bahamas IBC, in reality, it may not be for everyone.  One key point to be highlighted regarding the Bahamas IBC legislation, is that the IBC structure may not engage in a business enterprise in the Bahamas.  It also may not own real estate in the Bahamas.  
.  
The Bahamas IBC does enjoy the right to earn interest from local bank accounts ~ tax free.  It also has a special exemption from Bahamas taxes ~ but only for twenty years.  After twenty years are up, the all around tax exempt status disappears.  So, if your time horizon is very long term, the Bahamas may not be the place.  
.  
The fact that only one director is required is a positive.  In addition, since the director or directors are not disclosed in the public record, this may also be more appealing for those clients seeking true privacy.