By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Attorney General Ryan Pinder has announced the government is developing a comprehensive national policy on artificial intelligence, with a focus on managing both the opportunities and risks of AI in the financial services sector.

Speaking at the Nassau Conference yesterday, Mr Pinder highlighted the transformative potential of AI in fintech, citing its ability to enhance innovation, operational efficiency, and customer service. However, he also acknowledged the serious challenges the technology poses, including risks of fraud, data breaches, misinformation, and potential job displacement.

“We recognise these risks and opportunities. The government of The Bahamas is in the process of seating an expert policy committee that will be tasked with preparing a comprehensive AI country policy,” said Mr Pinder.

“This AI policy document will incorporate a true SWOT analysis of utilising AI in all elements of our country. An important component of this will be the financial services industry. We look forward to your input as we develop the policy to ensure that we can maximise AI in the financial services industry while mitigating the threats and concerns.”

In addition to AI regulation, the government is developing frameworks for Decentralised Autonomous Organizations (DAOs)—blockchain-based, community-led entities governed by smart contracts.

Mr Pinder noted that recent legislative efforts aimed at aligning local laws with global regulatory standards and fostering new financial products. He stressed ongoing policy innovation is critical for The Bahamas to remain competitive amid rapid technological change.

“We have witnessed over the last couple of years the maturity of the use of DAOs and we are having more and more discussions on practical regulation of DAOs. This is where I think we as a jurisdiction have an advantage, we are nimble, progressive and have unique products that might allow us to advance suitable regulation and structure for a DAO,” said Mr Pinder.

He said the government, working with the Securities Commission of The Bahamas, expects to release a concept note on DAO regulation soon, exploring legal entities, fund structures, and purpose trusts as viable options.

Mr Pinder called these initiatives “very exciting” and said they would position The Bahamas favourably in the international fintech landscape.

“Through work with the Securities Commission of The Bahamas we are working on proposed structures and corresponding scope of regulation for DAOs. We hope to have a concept note on the framework in the coming months. We are looking at structures using either a legal entity, possibly a fund structure, or a legal arrangement, possibly utilising a purpose trust structure, as viable structuring options for DAOs. We think this is very exciting and will be a welcomed development internationally in the fintech space.”