Central Bank of the Bahamas permits MTBs and banks to convert non-residents’ Bahamian dollar holdings for overseas remittances

The Central Bank of the Bahamas issued a public notice clarifying that, with immediate effect, Money Transmission Businesses (MTBs) and commercial banks are permitted to convert non-residents’ holdings of Bahamian dollars into foreign currency for remittance abroad for current account payments. The notice addresses inconsistent practices in handling individuals residing in The Bahamas without the right to work, who are treated as non-residents for exchange control purposes. The clarification follows the Central Bank’s August 2018 decision to allow non-residents to open and maintain Bahamian dollar deposit accounts at commercial banks with balances of BSD 50,000 or less. The Central Bank said it will monitor these transactions closely and expects MTBs to adhere strictly to delegated limits and to continue meeting customer due diligence requirements.