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2019-06-26

Notice on Nominee Activities and Related Companies

The Central Bank of The Bahamas issued a revised Guidance Note clarifying annual filing requirements for nominee trust licensees. Licensees consolidating financial statements with their parent and not accounting for separate income are exempt from filing standalone reports, while others must submit either a Directors’ and Auditors’ Certificate or full audited financial statements. The policy takes effect immediately, requiring affected entities to submit the appropriate documentation by July 29, 2011, for operations ending December 31, 2010.

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Page 1 of 2 The Central Bank of The Bahamas G U I D A N C E NOT E (GN: 01-03/08) rev. [04/11] Re: Supervision of Nominee Activities of Subsidiaries and Related Companies of Banks and Trust Companies This Guidance Note further clarifies the Central Bank’s policy with respect to the Annual Filing Requirements of nominee trust licensees. This Guidance Notice supersedes and replaces section B 1 of Guidance Note (GN: 01-03/08) on the Supervision of Nominee Activities of Subsidiaries and Related Companies of Banks and Trust Companies issued on 14th March 2008. A. Annual Filing Requirements:

  1. The requirement for nominee trust licensees to file annual audited financial statements with the Central Bank pursuant to section 8(1) of the Banks and Trust Companies Regulation Act, 2000 is waived, provided that: a. the nominee trust licensee consolidates its financial statements into the annual audited financial statements of its parent; and b. the nominee trust licensee does not account for its own income and expenses.
  2. Where the nominee trust licensee does not consolidate its financial statements with that of its parent, such a licensee is required to submit an annual Director’s and Auditor’s Certificate confirming compliance with its licence mandate in lieu of annual audited financial statements to the Central Bank.
  3. Where a nominee trust licensee does not consolidate its financial statements into the annual audited financial statements of its parent and accounts for its own income and expenses, such a licensee is required to submit annual audited financial statements to the Central Bank. B. Effective Date:
  4. This Guidance Note is effective immediately.
  5. Nominee trust licensees, which are captured by A 2 and A 3 above, are required to arrange for an audit of their respective operations for the period ending 31st December 2010 or their most current financial year end and submit the Directors’ and Auditors’ Certificates or the audited financial statements, as appropriate, by July 29th, 2011.

Page 2 of 2 Any questions regarding this Guidance Note should be directed to: The Policy Unit Bank Supervision Department Central Bank of The Bahamas Market Street P.O. Box N 4868 Nassau, Bahamas Tel (242) 302-2615 Fax (242) 356-3909 Email: Policy@centralbankbahamas.com Issued: 18th April, 2011

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