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      P. O Box SP-61567
      Nassau, New Providence
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  • Client Focus. Solutions Driven.
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    • Private Trust Companies
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  • Client Focus. Solutions Driven.
  • About Us
    • About Caystone
    • Client Leaders
    • Client Updates
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    • Fund Services
    • Accounting Services
    • Fiduciary & Corporate Administration Services
    • Concierge Services
    • Private Trust Companies
    • Compliance Services
  • Contact
  • Client Focus. Solutions Driven.
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    • About Caystone
    • Client Leaders
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Client UpdateSeptember 14, 2020

Economic Substance/Beneficial Owner Update

It has been a busy period of transformation in The Bahamas with the enactment of the (a) Commercial Entities (Substance Requirements) Act 2018, (b) the Register of Beneficial Act (“ROBO”), 2018 and the (c) Investment Funds Act, 2019 among others.  These laws are focused on tax residency of key commercial businesses, appropriate, secure and controlled access to beneficial owner information to enable valid law enforcement enquiries and good governance of the securities markets.

Arising from these laws, there are steps to be taken by every entity and registered agent.

In regards to the Substance Requirements legislation and as we have shared with you over the past months, every entity must classify itself ahead of annual mandatory filing as one of the four:

  1. a company in scope of the key commercial business sectors such as investment management, leasing and banking,
  2. falling within the above category but having a tax residence other than The Bahamas
  3. a company with the sole purpose of ownership of a company meeting the first category and
  4. a company that either does not fall within any of the forgoing categories or is owned by a Bahamian resident.

A first step to undertaking this filing, a unique Entity Identification Number (“EIN”) must be secured by each entity.  This EIN also may be utilized in completing tax reporting forms, such as W-8 BenE, as a unique ID.

To facilitate the process, we have on a no-charge basis secured an EIN for our clients.  Should clients prefer that we undertake the annual filing, we would be pleased to undertake the same for a nominal fee of $250.

For the implementation of ROBO, a BDO designed secure series of mini-cloud sites captures all beneficial ownership data unless the entity:

  • is or is owned by a regulated person, including a regulated trustee of a trust,
  • regulated as an investment fund
  • listed on a recognized stock exchange

We fulfill this obligation without any increase in fees.

An overview of the Investment Funds Act is available in our website here.


 

If there are further questions, please send an email to: contact@caystone.com.

Update to The Investment Funds ActPrev
Caystone’s Statement on Sanctions arising from Russia-Ukraine ConflictNext

Additional Client Updates

  • Bahamas Attains Technical Compliance in 40 of the 40 Financial Action Task Force Recommendations
  • Caystone’s Statement on Sanctions arising from Russia-Ukraine Conflict
  • Economic Substance/Beneficial Owner Update
  • Update to The Investment Funds Act

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Goodman’s Bay Corporate Centre

P. O. Box SP-61567
West Bay Street
Nassau, New Providence
The Bahamas

Albany Financial Centre

Suite 701
South Ocean Boulevard
New Providence
The Bahamas

Contacts

The Bahamas: + 242 397 6500
Brazil: + 55 11 3198 6125
contact@caystone.com

Mexico: + 52 553 687 7104
Switzerland: + 41 43 500 4277
United Kingdom: + 44 203 051 6801
New York: + 718 362 6017

 

Caystone is regulated by the Securities Commission of The Bahamas as an Unrestricted Fund Administrator and a Financial and Corporate Service Provider.
Caystone is regulated by the Central Bank of The Bahamas to provide Private Trust Company services.

This website is for information purposes only and does not constitute an offer or solicitation of products or services where prohibited by law. It is designed to provide general information on our fiduciary services in the jurisdictions we operate, based on the laws and practices at the time of printing. This information is not intended to be exhaustive and does not constitute legal advice.

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