The Automatic Exchange of Financial Account Information (Amendment) Act, 2026 (the “Amendment Act”) came into force on 23 March 2026 (the “Effective Date”) and amended the Automatic Exchange of Financial Account Information Act, 2016 (the “Primary Act”). The Primary Act is the legislation which incorporated the OECD’s Common Reporting Standard (“CRS”) into the domestic laws of The Bahamas.
The Amendment Act introduces several important changes to The Bahamas’ CRS framework which will impact those entities that are categorized thereunder as Financial Institutions (“FIs”, each an “FI”), with particular impact on those previously categorised as Non-Reporting Financial Institutions (as defined below).
The amendments significantly expand the registration, reporting and compliance obligations applicable to FIs by imposing mandatory registration, NIL Return filing and de-registration requirements for FIs.
Mandatory Registration of Financial Institutions
The Amendment Act imposes an obligation on every FI to register with the Competent Authority (i.e., the Minister of Finance) via the Competent Authority’s automatic information exchange portal (the “AEOI Portal”):
- Entities that are not FIs on the Effective Date are required to register within ninety (90) days of becoming an FI. As such, any entity that after the Effective Date qualifies as a FI must register in the AEOI Portal within the required timeframe.
- Entities that on the Effective Date qualify as FIs but are not registered in the AEOI Portal because they previously had no Reportable Accounts (as defined in the Principal Act) (“Non-Reporting Financial Institutions”) are required to register in the AEOI Portal no later than 15th June 2026.
The Amendment Act also recognises that the AEOI portal may periodically be unavailable. In such circumstances, the calculation of the ninety (90) day registration period excludes the period during which the portal is inaccessible.
Failure to comply with the registration requirement constitutes an offence and may result in a fine of up to B$100,000 upon summary conviction.
Mandatory Filing of Nil Returns
Prior to the Amendment Act, FIs were obliged to register only if they were a Reporting Financial Institution. The Amendment Act, however, imposes an obligation on Non-Reporting Financial Institutions and other Financial Institutions that have not maintained any Reportable Accounts for the relevant reporting period to file a Nil Return with the Competent Authority.
Going forward, Financial Institutions will be expected to file either:
- an Information Return containing reportable account information; or
- a Nil Return confirming that no Reportable Accounts were maintained during the relevant reporting period.
Failure to submit a required Nil Return may expose an institution to compliance action or administrative penalties. Where Non-Reporting Financial Institutions and Reporting Financial Institutions fail to file a Nil Return, the Competent Authority may impose an administrative penalty of up to $300,000.
Mandatory De-Registration upon cessation of being a Financial Institution
The Amendment Act introduces a formal obligation for entities to de-register where they cease to be FIs.
An entity that ceases to be an FI must apply to the Competent Authority for de-registration within ninety (90) days of the cessation. Importantly, de-registration will not be processed unless the entity has filed all outstanding Information Returns or Nil Returns for the reporting periods ending prior to the date of cessation.
FIs should therefore ensure that any proposed wind-down, restructuring or change in status is accompanied by a review of all outstanding CRS filing obligations before seeking de-registration.
Enhanced Enforcement and Compliance Measures
The Amendment Act substantially strengthens the Competent Authority’s enforcement powers.
The Competent Authority may now issue formal compliance notices directing remediation of non-compliance within specified periods. In addition, administrative penalties of up to B$300,000 may be imposed for contraventions of the Primary Act or regulations thereunder.
The Amendment Act also enables the Competent Authority to appoint independent tax experts, at the expense of an FI, to conduct CRS compliance reviews.
What should you do?
All entities should review their CRS classification and filing status in advance of the applicable deadlines. Entities that qualify as FIs should promptly assess whether they are properly registered under the CRS framework, confirm whether Nil Return obligations apply, and ensure that appropriate procedures are in place for timely reporting and de-registration where necessary.
Our jurisdiction experts in CRS can assist you in the review of your CRS classification, filing status, registration requirements and reporting obligations.
Disclaimer: This publication is not intended to serve as legal advice. Legal advice specific to your circumstances should be obtained. Should you require such advice, do not hesitate to reach out to any one of the members of our firm’s Financial Services Practice Group:
- Dwyane Whylly– dwhylly@gsolegal.com
- Kamala Richardson-Deal– krichardson@gsolegal.com
- Nastassia Rigby-Rodriguez– nrigby@gsolegal.com