SCB — Securities Commission of The Bahamas
The Bahamas | Caribbean (Offshore) | Founded 1995
What is the SCB?
The SCB regulates the securities industry in The Bahamas, including investment funds, broker-dealers, and securities exchanges. The Bahamas is a well-known offshore financial centre with a long history in fund administration and private banking. However, its regulation of retail forex brokers is less developed than Tier 1 jurisdictions. Several major international brokers register entities in The Bahamas to serve clients outside of their more strictly regulated jurisdictions.
What the SCB Does
Registers and supervises securities firms, broker-dealers, and investment fund administrators
Sets capital requirements and conduct standards for registered firms
Enforces the Securities Industry Act and related regulations
Maintains a public register of licensed entities
Can impose sanctions, suspend, or revoke registrations
What the SCB Protects You From
Completely unregistered entities — an SCB registration confirms the broker has been through a registration process
AML failures — the SCB enforces anti-money laundering requirements
What the SCB Does NOT Protect You From
Trading losses or unfair execution — the SCB does not enforce retail-specific conduct rules comparable to MiFID II
There is no investor compensation scheme — no guaranteed recovery if the broker goes bankrupt
No leverage limits for retail forex traders — brokers can offer any leverage level
No negative balance protection requirement
Limited complaint resolution for international retail clients — pursuing a case from Africa against a Bahamas-registered entity is expensive and difficult
Key Requirements for SCB-Regulated Brokers
Registration with the SCB under the Securities Industry Act
Maintain prescribed minimum capital requirements
Comply with AML/CFT obligations
Submit periodic financial reports and compliance returns
Maintain proper books and records
Investor Compensation Scheme
The Bahamas does not have an investor compensation scheme for retail forex or CFD traders. If an SCB-registered broker becomes insolvent, you must rely on the insolvency process.
Jurisdiction Warning
The Bahamas has a reputable financial services sector for institutional finance, but retail forex regulation is minimal. Brokers often register in The Bahamas because the requirements are lighter and costs lower than obtaining FCA or CySEC licences.
Note for African Traders
An SCB registration is a step above completely unregulated, but it does not provide meaningful retail trader protections. If a broker routes you to their Bahamas entity instead of their FCA or CySEC entity, you receive significantly weaker protections. Always ask which entity will hold your account.
How to Verify a Broker's SCB Licence
Go to the SCB website and navigate to the Registered Firms page. Search for the broker by name or registration number. The register shows the entity type and registration status.
Open SCB Register