Thursday, November 5, 2020

Bill enshrines consumer protections against criminal financial schemes


Image: Wiki

Paige McCartney
The Nassau Guardian

Deputy Prime Minister and Minister of Finance Peter Turnquest yesterday tabled a critical bill that enshrines protections for consumers and investors, while criminalizing certain financial schemes.

The Financial and Corporate Service Providers Bill, 2020 modernizes current laws by establishing a full regulatory, 

internationally compliant framework under the authority of the Securities Commission of The Bahamas.

For the first time, the bill defines certain criminal financial schemes, making The Bahamas one of the leading jurisdictions to introduce legislation to expressly criminalize this type of activity, Turnquest said.

“These may take the form of pyramid schemes, Ponzi schemes and advance-fee schemes, among others and many of them have plagued unsuspecting Bahamians for generations. Further, these schemes are fundamentally detrimental to investors and the public,” Turnquest said while leading debate on the bill, which was eventually passed in the House of Assembly yesterday.

“The bill criminalizes the promotion or marketing of these financial schemes and empowers the commission to dissolve them where circumstances so warrant. It also empowers the commission to investigate and enforce against persons engaged in financial schemes.”

The bill also provides legal clarity to non-bank financial services while placing significant focus on customer protection.  Read more >>