The Tribune

By NEIL HARTNELL 

Tribune Business Editor 

nhartnell@tribunemedia.net

FINANCIAL services providers and corporate Bahamas were yesterday promised that resolution of payment “back-logs” and other woes with the new online Companies Registry portal is “on the horizon”.

Ryan Pinder KC, the attorney general, in a messaged response to Tribune Business inquiries asserted that the Davis administration is “completely committed” to providing the necessary resources and upgrades that will ensure the Corporate Administrative Registry Services (C.A.R.S.) portal provides the more efficient, user-friendly experience promised.

Confirming that there have been “administrative challenges” with the new online Companies Registry platform since its full launch just months ago, he acknowledged that a fully-functioning portal “is a necessity” for both the international and domestic economy while pledging that recently-initiated reforms will drive “a material improvement in the customer service experience”.

These reforms include the appointment of a dedicated permanent secretary for the Registrar General’s Department, Cecilia Strachan, who will have oversight responsibility for all administrative and operational functions in a bid to boost efficiency. Staff numbers are also being further increased to address the difficulties associated with payment processing and the creation of escrow accounts.

Documents obtained by Tribune Business reveal that financial and corporate services providers, which include banks and trust companies as well as law and accounting firms, have encountered difficulties in setting up these “escrow accounts” which are intended to hold funds to facilitate and cover transactions such as company incorporations and pay due annual fees.

Mr Pinder yesterday said the need to “verify” corporate filings and approve applications has required a reorganisation of the Registrar General’s Department’s administrative functions, while adding that the Government is “deeply invested” in the new online companies portal and other imminent changes at the agency.

An efficient Companies Registry that operates smoothly is vital to The Bahamas’ ease of doing business, and the financial services industry and wider private sector functioning efficiently, since it acts as a critical hub that all domestic companies, International Business Companies (IBCs) and many other corporate vehicles must touch on an annual basis during their existence.

It handles company incorporations, the filing of corporate documents such as annual returns, fee payments, name reservations, certificates of good standing and other certified documents. The company portal woes have also occurred just when the Registrar General’s Department is being asked to assume more responsibilities with the future addition of a land registry.

Niekia Horton, the Bahamas Financial Services Board’s (BFSB) chief executive and executive director, called for patience from the industry as she voiced optimism that “a better situation is on the horizon” based on talks with Mr Pinder and his officials.

In a note to BFSB members that has been seen by Tribune Business, she wrote: “We would like to acknowledge the challenges some of you have encountered with the C.A.R.S. platform and to update you on the measures being implemented to address them. Following discussions with the Attorney General, we can confirm that he is aware of the situation and is actively working towards solutions.”

These included the appointment of Ms Strachan as permanent secretary for the Registrar General’s Department. “Ms Strachan will be overseeing the registry’s administrative activities to ensure smoother co-ordination and enhanced efficiency,” Mrs Horton wrote.

“A new finance officer has been appointed to address issues related to the escrow account and other accounting matters. It has been noted that some of the delays you are experiencing stem from establishment of the escrow account, and the new officer will work to resolve these promptly. Any processing backlog will likewise be addressed.”

Mrs Horton said additional “support staff” are being recruited at the Registrar General’s Department to help address “day-to-day queries” and provide a “timely response” to private sector concerns with the companies portal.

“We appreciate the difficulty the challenges pose in managing business relationships and making business decisions, and we can confirm that the Attorney General and the Registrar General are committed to working through the issues,” the BFSB chief executive told members.

“ We anticipate that, with the improvement measures, a better situation is on the horizon and we kindly request your steadfast patience as the issues are addressed. Updating the Company Registry is indeed a monumental task, requiring strong collaboration between the Government and the private sector. Let us remain united as we work to strengthen our industry.”

Mr Pinder, in his response to Tribune Business, confirmed all the reforms detailed by Mrs Horton and also revealed that “a major scanning project” has been launched to ensure all historical files and their data are uploaded into the new C.A.R.S. system.

“Yes, there have been some challenges on the administrative side of the launch of C.A.R.S. and, as you mention, a backlog of matters regarding payment processing and escrow accounts,” the Attorney General said, clarifying that escrow accounts are set-up and funded by corporate services providers to cover fee costs associated with using the Companies Registry.

“This, in theory, will allow quicker processing and a smooth transaction experience,” Mr Pinder said. “The administration of C.A.R.S. also requires back-end support to verify filings and approve requests. These new functionalities have resulted in a need to reorganise the administrative functions of the Registrar General’s Department.

“The Government is deeply invested in C.A.R.S. and the upgrade of the Registrar General’s Department, and is completely committed to putting in what is necessary to ensure the service experienced is as advertised and what is intended by the launch of C.A.R.S.”

Mr Pinder confirmed Ms Strachan’s appointment, with responsibility for “overseeing the administrative governance when we reorganise the Registrar General into a separate Company Registrar, Registrar of Records and launch of the land registry”.

The expanded finance and accounting team, he added, is better placed to facilitate the speedier creation of escrow accounts, “clear any backlog that exists” and address all accounting-related functions, while extra clerks have also been recruited for the agency.

“We are launching a major scanning project to ensure that all legacy files have been uploaded into C.A.R.S. so the functionalities are applicable to historical matters as well as current matters,” Mr Pinder said. “Ensuring C.A.R.S. and the company registrar is functioning at the level and efficiency that the client expects is a necessity and we will ensure that the resources are provided to make it happen.

“As you can see we have already initiated reforms that we think will ensure a material improvement in the customer service experience. We continue to refine the operations and look to the eventual reorganisation into a dedicated Registrar of Companies and Registrar of Records.

“We have a full understanding of the importance of a well-run and functioning Registrar General, and especially Registrar of Companies, and will ensure that we meet the expectations.” The private sector has long called for an improved digital platform at the Companies Registry to boost efficiency and turnaround time for its corporate and individual clients.

Mr Pinder, in his 2024-2025 Budget debate contribution in June 2024, said several financial and corporate services providers had already participated in pilot testing of the new companies registry. “This marks the culmination of years of development work, data integrity projects and data migration,” he said then.

“We firmly believe this will revolutionise the country’s company registry. I extend my thanks and congratulations to registrar general, Camille Gomez-Jones, for her dedication and commitment to completing this project, often under challenging circumstances. We are very excited to introduce this platform, a significant step forward in modernising our business sector.

“Following the launch of C.A.R.S., the Registrar General’s Department will commence the digitisation of the civil registry. This will include a fully digital civil registry services platform, enabling users to obtain certified copies of birth, death and marriage records, as well as certified copies of recorded documents without needing to visit the Registrar General’s Department.

“Development work on this project has already begun, with the new civil registry platform slated for launch for new registrations by the end of this calendar year. Gone are the days of waiting in line outdoors to file registrations and retrieve documents.”