The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

THE CENTRAL Bank is targeting 2027 for public consultation on proposed consumer financial protection measures, as it advances a multi-year programme that could eventually lead to new legislation governing how financial institutions treat customers.

John Rolle, its Governor, said the regulator expects to intensify work on the framework next year, with the possibility of bringing proposed measures to the public for consultation as it seeks to strengthen protections within the financial services sector.

The initiative is expected to address the broader framework governing financial consumer protection, including areas where more defined legislation could be introduced to establish clearer safeguards for banking customers.

Mr Rolle said the programme will be an ongoing undertaking rather than a one-off exercise, with work expected to continue beyond 2027.

"The Central Bank does have a multi-year programme in terms of building out a consumer financial protection framework for The Bahamas," he said.

"We expect that going into 2027, there'll be more work around it, and hopefully we could even get to the stage next year where there is public consultation on what some of those proposed frameworks would look like."

Mr Rolle said the proposed framework could also identify areas where more specific legislation may be necessary, particularly in relation to the financial aspects of consumer protection.

Alongside that work, the Central Bank is preparing to issue its final agency banking consultation framework within the next two to three weeks, providing financial institutions with clearer guidance on appointing third-party agents to deliver certain banking services.

Mr Rolle said much of the groundwork for the framework had already been completed, with the final version expected to give financial institutions greater structure around how they outsource aspects of their operations.

Agency banking is intended to allow banks and other financial institutions to extend their reach through arrangements with other entities that can provide certain services on their behalf.

Mr Rolle said some financial institutions are already partnering with other financial entities to provide services in the Family Islands, but the Central Bank wanted to see those arrangements expanded within a more structured regulatory framework.

"We want to see them be able to do more of that in structured ways," he said. The framework could therefore provide opportunities to improve access to financial services in communities where traditional banking infrastructure is more limited.

The Governor also addressed concerns surrounding the time it takes to open bank accounts, particularly for businesses, adding an updated study examining the process will be released shortly.

He said the Central Bank had already observed improvements in the time required for individuals to open accounts, although establishing accounts for businesses remained a greater challenge.

"When we did the update, I think the second iteration of that process, we already were able to see that the wait time was reducing," said Mr Rolle.

However, he said the greater challenge remained the process of opening accounts for businesses, which can involve more extensive due diligence requirements.

Mr Rolle said improving the country's public information infrastructure, including the availability of reliable records used to verify individuals and businesses, was also important to making the process more efficient.

The Central Bank, he added, remained open to examining whether its regulatory requirements could be better tailored to the risk profiles of different customers, while maintaining the safeguards necessary to protect the financial system against money laundering and other financial crimes.