Bahamas — Banking: International Transfers

Key facts

• The Bahamas uses the Bahamian dollar (BSD), pegged 1:1 to the USD; both circulate freely and banks exchange at par

Steps

1. Open a local bank account — Most international transfers into or out of The Bahamas are facilitated through a local commercial bank account. Major retail banks include Scotiabank Bahamas, RBC Royal Bank (Bahamas), and CIBC FirstCaribbean. Expect KYC requirements: valid ID, proof of address, and in many cases a reference letter from your previous bank.
2. Understand the BSD/USD dynamic — Because BSD and USD trade 1:1, you do not lose money on currency conversion between the two. Transfers in other currencies (EUR, GBP, CAD) will be converted by the bank at its posted rate.
3. Initiate or receive the transfer — Outbound: request a wire/telegraphic transfer at your bank branch; you will need the beneficiary's bank SWIFT/BIC, account number (IBAN is not used in The Bahamas), and their full name and address. Inbound: provide senders with your bank's SWIFT code, your account number, and the bank's correspondent bank details.
4. Declare and document for AML — Larger transfers, transfers to/from higher-risk jurisdictions, or transfers flagged by the bank may trigger enhanced due diligence. Be prepared to provide invoices, contracts, or evidence of source of funds. Cash deposits above a threshold trigger Currency Transaction Reports.
5. Use licensed money services businesses cautiously — A small number of licensed money transmission operators exist, but most large transfers go through banks. Verify licensing with the Central Bank or the Securities Commission of The Bahamas before using non-bank providers.

Costs

• Outgoing wire transfer fee (typical bank range): varies by bank, commonly a flat fee per wire plus possible correspondent bank charges

Timelines

• Standard international wire (USD between major banks): typically 1-3 business days, varies

Required documents

• Valid government-issued photo ID (passport recommended for non-residents)
• Proof of address (utility bill, bank statement)
• Tax identification (Social Security Board number for residents, or TIN equivalent)
• Source of funds documentation for larger or flagged transfers (payslips, sale contracts, investment statements, etc.)
• Beneficiary details: full name, address, account number, and bank SWIFT/BIC for outbound transfers
• Reference letter from previous/foreign bank (often required at account opening)

Common mistakes

• Assuming non-USD transfers will move at interbank rates; banks apply their own FX margin.
• Not providing the receiving bank's SWIFT code or correspondent details, causing delays or returns.
• Underestimating correspondent/intermediary bank fees deducted along the SWIFT chain.
• Failing to declare source of funds in advance, which can freeze a transfer pending compliance review.
• Confusing BSD and USD: both are legal tender at par, but bank statements distinguish them.
• Using unlicensed money transmitters, which exposes funds to loss and regulatory risk.