Bahamas Receives Six-Year QJ Status from the U. S.

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.