The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

FINANCIAL expert Gowon Bowe has pushed back against claims that opening a bank account is a challenge in The Bahamas, insisting the process is typically completed in less than 48 hours for most people with straightforward financial profiles.

His comments came in response to Progressive Liberal Party chairman Fred Mitchell, who dismissed the Central Bank’s recent report on account openings as misleading. Mr Mitchell argued that while approval rates may appear high, the experience remains frustrating for many Bahamians.

The Central Bank’s 2024 report — the first survey of its kind — found that 99 percent of 28,153 deposit account applications in the first six months of the year were approved, with most processed in less than a week once all Know Your Customer (KYC) documents were submitted.

“The problem is we don’t need the account within six months,” Mr Mitchell said in response this week. “We need it on the day we walk into the bank.”

Mr Bowe acknowledged inefficiencies in the banking system but said the delays are often due to incomplete paperwork or additional scrutiny required under international anti-money laundering rules — not systemic breakdowns.

“The reality is that very often people use a broad brush to tie the entire process, and I think it’s important to segregate certain types of accounts,” he said. “So, for the average citizen or resident who is not complex, standard salary and the source of income, all of the banks are reporting that they are able to open a bank account, certainly in less than 48 hours, and generally in 24 hours.”

He added: “This is talking about, like I said, the low-risk, acceptable-risk customer, based on anti-money laundering laws and regulations. If you are a politically exposed person, if you are a high-net-worth person, if you are the owner of businesses that are very intense in cash collection or more complex activities, due diligence process is extended.”

Mr Mitchell has long been a vocal critic of local banking institutions, pointing to high fees, slow service, and what he described as a “forced” digital transition that ignores the country’s unreliable internet infrastructure.

Mr Bowe argued that complaints often come from people whose circumstances require more scrutiny, but who expect a simplified process. He said comparisons to foreign banking systems are not always fair or accurate.

“I think oftentimes persons who are in these categories are sometimes expecting there to be a simplified process, and often reference foreign jurisdictions where they suggest that it’s able to walk in and walk out with the same account, in the same date,” he said. “In a place like North America, they may not be a political person. They may not be actually referencing all of their ownership in construction companies or in cash and businesses like restaurants or car rentals, Airbnb, and the like. And so oftentimes, the criticisms are levied because persons are looking at there being a one size fits all.”

He said Bahamian banks operate under strict international scrutiny and must comply with rigorous standards to maintain relationships with correspondent banks — partners essential for handling foreign exchange, clearing transactions, and preserving access to global financial markets.

“People often compare today’s banking to the 1990s, but they forget that back then, we had far less regulation,” he said. “The Bahamas has since come under intense scrutiny for money laundering, illicit trade, and tax evasion. Today, we have to meet international standards, which means greater due diligence.”

While acknowledging the need for banks to communicate more clearly and improve service, Mr Bowe said customers also need to come prepared.

“The truth of the matter is, the records have to reflect it,” he said. “It’s inaccurate to say that it is taking so long to open accounts for the basic accounts, which are the vast majority of citizens and residents in the country.

“Secondly, Bahamians do not always do a very good job of providing all documents but I do accept that banks are inefficient and highly ineffective at times in properly explaining the necessary documents.”