The Securities Commission of The Bahamas published a report covering its supervision and surveillance of digital asset activity from Jan. 1, 2021, through Sept. 30, 2026. Its 2026 onsite program reached 17 of the 20 active registrants, with 16 thematic examinations recording 82 findings. More than half involved late or unsupported sanctions and terrorist property filings, while other deficiencies centered on customer due diligence, ongoing monitoring, risk assessment and training. The examinations did not identify missed sanctions matches, unreported designated persons or assets that should have been frozen. Travel Rule testing covered 1,831 sampled transfers through 44 examinations spanning 2021 to 2026. Eight breaches affecting three registrants concerned failures to retain or produce required originator or beneficiary information. A separate sectorwide diagnostic review identified recurring weaknesses in documentation, policy governance, custody procedures, proof of reserves, stress testing and procedures for blockchain events, with readiness gaps treated as conditions for preoperational firms to begin business. The registered population reached 35 firms by August 2026, of which 20 were active. At the end of 2025, the sector served about 2.16 million clients and held USD 33.65 billion in client assets, with more than 99.9% attributable to clients resident abroad. The commission is tracking remediation for each examination finding, monitoring diagnostic observations through quarterly meetings and developing guidance on digital asset custody and blockchain events.
Securities Commission of The Bahamas reports 82 findings in 2026 digital asset examinations and eight Travel Rule breaches
The Securities Commission of The Bahamas found 82 deficiencies in 16 thematic examinations of digital asset registrants, mainly involving periodic statutory filings and core anti-money laundering controls. Travel Rule testing of 1,831 transfers identified eight breaches across three firms, all involving missing or unavailable originator or beneficiary records. Remediation is being tracked, while preoperational firms must close readiness gaps before commencing business.