Money Transmission License in Bahamas

Executing inbound and outbound international and domestic cross-border money transfers

Processing electronic payments and fund transfers using international networks or modern payment infrastructures

Operating digital wallets and issuing electronic payment instruments (historically restricted to Bahamian Dollars unless specific foreign currency permissions are granted)

Providing payment clearing infrastructures and merchant services to local or international e-commerce platforms

A minimum of $100,000 in unimpaired capital is required for a restricted framework, though requirements scale up depending on the planned operational volume

Licensees must maintain liquid funds equal to at least three times the average maximum daily customer transaction volume (calculated over a six-month trailing basis) OR six months of gross operating expenses—whichever is greater

Licensees are legally required to secure and maintain adequate insurance coverage specifically tailored to cover financial crime, cyber risks, and settlement defaults

An annual licensing fee of $5,000 for the primary provider, plus $300 per operating agent and $250 per physical location

The licensee must establish and maintain an active, physical head office or registered office within the Bahamas.

At a minimum, the physical local office must be staffed by a resident Chief Executive Officer (CEO) and a dedicated Money Laundering Reporting Officer (MLRO) / Compliance Officer.

The designated MLRO / Compliance Officer must be a Bahamian citizen.

The corporate structure must maintain a functioning Board of Directors, a distinct Risk Management Committee, and an Audit Committee

Directors, major shareholders (holding 5% or more voting power), and senior managers undergo extensive background checks to prove their professional reputation, competence, and financial integrity

Applicants must deliver a comprehensive, customized Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) policy document detailing internal KYC validation and electronic transaction monitoring systems

A detailed business plan including balanced corporate projections, operational budgets, and structural risk mitigation frameworks must accompany the application

The provider can serve local residents across the islands using electronic platforms or a network of registered local Money Transmission Agents

The license enables the transmission of funds internationally. However, it does not grant pass-through licensing rights into other jurisdictions. To systematically solicit clients inside the US, EU, or UK, the licensee must secure additional parallel licenses (e.g., state-level MTLs in the US via FinCEN)

0%. There is no corporate income tax, capital gains tax, or personal income tax levied in the jurisdiction

Value Added Tax (VAT): The standard VAT rate is 10%. Financial services, including money transmission fees, may attract specific VAT treatments. Companies with an annual local turnover exceeding BSD 100,000 must register for VAT with the Bahamas Department of Inland Revenue

Business License Fees: An annual business license tax is assessed, calculated as a percentage of the company’s gross local revenue turnover

A detailed statement clarifying the exact purpose of the bank account and how it supports the money transmission activities

Estimates of monthly income, expenditures, and expected average monthly balances

Explicit descriptions of the source of funds credited to the account and the destination of outbound payments

A copy of the company's Certificate of Incorporation, a current local Business License, and the valid Central Bank Money Transmission License

Verification of the nationality and immigration status of the company’s ultimate beneficial owners (UBOs