The Hon. James H. Smith
Minister of State
Bahamas Ministry of Finance
**KYC Requirements On Par With International Standards**
The Bahamas has been granted a six-year term for its Qualified Jurisdiction (QJ) status by the US Government. This means that qualified intermediary agreements of institutions in The Bahamas will have a total term of six years and will be eligible for renewal at the conclusion of that six-year term.
The six-year term was granted after the U.S. Internal Revenue Service determined that the “know-your-customer” rules in The Bahamas are acceptable for the purposes of a qualified intermediary regime.
Minister of State for Finance James Smith said the extension provides a sense of certainty to the country’s financial services industry since companies will not have to wonder each year about US intentions for the jurisdiction.
*”It also sends a wider signal to the international community that the Internal Revenue Service regards the Know-Your-Customer requirements of The Bahamas as being on par with international standards,”* he said.
Qualified intermediary status enables a financial institution to benefit from reduced documentation and reporting procedures, greatly facilitating the ability of institutions to invest in the United States.