The offshore banking sector of The Bahamas has evolved into what many call a banking powerhouse. From its inception in the mid sixties, Bahamas offshore banking grew leaps and bounds as a result of ongoing legislative and infrastructural development which created the foundation for a highly competitive and advanced offshore banking center. Notwithstanding stable government, modern telecommunication system and economic soundness, foreign banking institutions are also attracted to The Bahamas due to the pool of educated and highly trained work force found in the islands.

Prudently investing and planning the distribution of assets is critical. Through the Dominica Economic Citizenship program, further steps can be taken to safeguard and manage already owned assets and to acquire more via attractive real estate, consider that Dominica citizenship available via real estate option, development projects. Licensed service providers facilitate citizenship by investment applicants interested in real estate development and give all relevant information. A series of offshore registration services are available, including International Business Companies and offshore LLCs.

Domestic and offshore banking supervision is undertaken by the Central Bank of The Bahamas which ensures that regulatory standards are satisfied by all financial institutions and stakeholders, while fostering a favorable climate for offshore and financial investment. Regulatory practices are further overseen by the Association of International Banks and Trust Companies which plays an active role in enforcing banking privacy within a framework that also combats financial terrorism and fraud.

Bahamas offshore banking is characterized by a broad spectrum of financial services which equip investors with the necessary tools for effective tax planning and asset management. In addition to regular deposit taking from overseas based customers, competitive banking products and services make offshore banking in The Bahamas a choice financial and asset repository. Bahamas offshore banking opens up access to broker dealers, portfolio management, captive insurers, mutual fund administrators, private banking, securities investment advisors, estate planning and trust services, which are professional services provided by 400 plus offshore banks operating from within The Bahamas.

The offshore banks in The Bahamas are subsidiaries and branches representing about thirty-six countries, among which are found Canada, Switzerland, Japan, the United Kingdom and France. Trust services are available from more than 60% of all Bahamas licensed banks while The Bahamas has an asset base amounting to over US $200 billion. Out of the 400 banks licensed to carry on business in or from within Bahamas, about 100 represent branches and subsidiaries of Euro Currency belonging to offshore banking and trust institutions while The Bahamas records to have incorporated an estimated 168 financial institutions as well as offshore banks and trusts.

In 2004, attributed mainly to tougher supervision and regulation, there is a decrease of the number of banks and trusts licensed in The Bahamas as compared to previous years. To enforce stricter regulation, banks were asked to provide proof of a physical presence in The Bahamas, which is a basic prerequisite for licensing and led to the authorities suspending the licenses of many major banks. Such regulatory measures have been promoted by the Financial Action Task Force and Organisation for Economic Co-operation and Development (OECD), which are at the forefront in international financial regulation and taxation issues.

On January 14, 2010, stakeholders of offshore banks and financial institutions in The Bahamas are to participate in the International Funds Conference, scheduled to be held in the Cayman Islands. At the conference, pertinent issues affecting offshore banking and the financial sector will be discussed. Some of these topics include regulation and legislation in the US/UK and EU, international tax issues and their implications for customers based overseas, private sector transparency, asset recovery and international corruption.