The Securities Commission of The Bahamas issued a public notice on August 26, 2026, ordering unlicensed money lenders and credit extension operators to regularize their status by September 30, 2026, or face enforcement action. The regulatory crackdown targets individuals and institutions conducting lending activities without proper licensing under the Financial and Corporate Service Providers Act 2020, which came into force in December 2020.
- Deadline for compliance: September 30, 2026
- Enforcement begins: October 1, 2026
- Maximum fine: BSD 75,000 plus USD 1,000 per day of violation
- Maximum imprisonment: Four years
- Original licensing deadline: June 14, 2021
The Commission defines licensable activities to include short-term loans, payday and cash advances, consumer and mortgage loans, and in-house financing arrangements for goods and services. The regulatory framework applies to all persons deriving income from these activities, whether operating physically or online within The Bahamas. The original transitional period for existing operators to obtain licenses expired on June 14, 2021, meaning all currently unlicensed lenders are operating in violation of the Act.
Unlicensed money lending constitutes an offense under section 46 of the Act. Conviction carries penalties of up to BSD 75,000 in fines, imprisonment for up to four years, and an additional BSD 1,000 daily fine for each day the violation continues. The Commission may also impose administrative penalties and exercise additional enforcement powers.
Unlicensed operators must contact the Commission’s Supervision Department at supervision@scb.gov.bs immediately and no later than September 30, 2026. The Commission emphasized that contacting the regulator does not authorize continued unlicensed activity and does not prevent action against past or ongoing breaches. From October 1, 2026, the Commission will pursue all available enforcement measures against non-compliant operators.
