Carbon Credits Trading Act No. 36 of 2022

SUPPLEMENT PART I OFFICIAL GAZETTE THE BAHAMAS PUBLISHED BY AUTHORITY NASSAU 11th August, 2022 (A) No. 32 CARBON CREDIT TRADING ACT, 2022 Arrangement of Sections Section PART I — PRELIMINARY 4 it Short title and commencemenN...............c::ccccceeeseeeeeesessececeeeeneceeeeseneeeeeeeeeeeeneneeneene 4 2 Interpretation:.....csnssrnseerionrensarenerneonresasennnsneneontengnnearoreaeersesenenpatonennenensenesnenneregnnses 4 3: Application: of Act.......ccermencenenconerereensenenonnswupnonnnncononencsnreten ceauneeastennenseenennewnane 10 PART Il— ADMINISTRATION OF ACT 10 4. Securities Commission to administer ACt............c.cseecsessseececccssssocenevserneeseseesevens 10 5: Functions and powers Of CommMisSION.............s.cssceseesenseseracnenesensnnsenesseserensenenens 10 PART III — REGISTRATION AND REGULATION OF CARBON TRADING BUSINESSES 11 CARBON TRADING BUSINESSES 11 6: Forms of cathon trading. Dusinesses...c.cssaenrssesnsoneresvevencccnsvousvsevenonssnsonnnseeanness 11 q Prohibition to carry on unregistered carbon trading business...........cc:ceeeeeeeeees 12 8. Registration of a carbon trading DUSINESS...........:.cccssscseceseeneeseeeeencenesteeeeeseeenesees 12 9 Carbon trading business as additional activity of a person registered with the Commission pursuant to another act supervised by the Commission...............-. 13 10. Duty to notify changes relating to application for registration................:0:006- 14 11. Financial requirements of carbon trading businesses...............:ccscecceeseeeereeteees 15 12. Commission to maintain register of carbon trading businesses.................6..000++ 15 13. Commission’s prior approval for certain Changes..........c.ccccceceseeccseeeeseeeeeeeeees 15 ADDITIONAL REQUIREMENTS FOR CARBON TRADING EXCHANGES 15 14. Prohibition to operate unregistered carbon trading exchange..........c:eseeeeeeeee 15 15. Application for registration of carbon trading exchange...........cccscccseceseeeeeeeeee 16 16.. Approval orrefusal Of application: .....:.s.asocssseencasssnsreccsnorxccmatessevassecssessemannats 16 17. Adequate systems and controls for carbon trading exchanges...........:cccseeceeees 17 18. Carbon trading exchange to satisfy ongoing requireMents...........:ccseeesseeeeteees LY ADDITIONAL REQUIREMENTS RELATING TO CARBON TRADING 17 REGISTRIES 17 19. Opening of account at a carbon trading registry..........ccceecseesseseeseteeteeseeseesseeeeee 17 20. Suspension of account at a carbon trading reQistry..........cccscseeteseeseeseeeeeeeeeeee 17 21. Closing of account at a carbon trading registry..............ccccsscssseeesseeneeesereereetees 18 22. Registration of carbon trading t6QiStry wus csccsscvssscsssseccscesacaascisaacasasacuereeenezeess 19 ADDITIONAL REQUIREMENTS FOR CARBON CREDIT VERIFICATION BODIES 20 23, Verification requirement for tradeable carbon Credits.....ss-recessseserereesrear eerenss 20 24. Approval of carbon credit verification bOdiCS........ssssessserrrnrsssrseerserssne eneanennens 20 25. Registration of carbon credit verification bodies. .........:+sssssseessssssesrnes sserenneenee 20 SUSPENSION, REVOCATION OR SURRENDER OF REGISTRATION 20 26. Suspension or revocation of registration. ......sssessessresreesecrseseessrsenseee nseenennees 20 27. Surrender Of registration........cssseecsseesereersecsnesnnsnsreanenenennensnnenensavensereranensa nenanrenyy 22 28. Process following surrender OF revOCAtION. ...ecsecsseesssesesnerneesnsatenensnerene taneeenenrer® 22 29, Winding up or dissolution, ......-:-:sesssesesereseesseneeneesseateseanennrcersscensesensnnene nnenannys 23 DATA PROTECTION 23 30. Record keeping and prevention of unauthorized data access.....sverss eesssecesessees 23 CONDUCT AND COMPLIANCE 24 31. Duty to maintain professional COMAUCE......scesssessereeereersenesreeneessenraneaneene seanenerss 24 32. General duty to comply and cooperate... .ssscsersrerssessnanersneeressersnenereata cseaenenses 24 ANTI-MONEY LAUNDERING, COUNTERING THE FINANCING OF TERRORISM AND PROLIFERATION PREVENTION MEASURES 25 33, Prevention of money laundering and countering proliferation and terro rism FIMANCING,......screconernseeversessvsnesenensscanennennesenessneenscanessesasanveusenscnanessanenennennannansnsess 25 PART IV— APPROVAL OF CARBON TRADING PRODUCTS 25 34, Approvals of carbon trading products......-sssessseeneenesanersnnraresssenrenseerenneen annarens 25 35. Approval of application........sscsssesseersecssnsssessesnnecenesnsennnesnesesseansernerssennse nnneeney 26 36. Powers of Commission in connection with the approval process, .....-:-.+: .sesereee 26 PART V - INVESTIGATION AND COOPERATION 26 37, Power to inspect and investigate......sccsssecsssessenesreerssersentestensesnssteeserere nertens 26 38. Agents to conduct inspections and investigatiOns........ssrrreeresrerereerieesen sennene 27 39, Cooperative POWEF.....ccssssssersesseererneansosesnesusarenneseatsnsansnnenscensansseneneana nenansnn tes Zit PART VI —- OFFENCES, PENALTIES AND SANCTIONS 31 OFFENCES AND PENALTIES 31 AD, OFFENCE... .ecceccecesssccoveccscsscssesevesassacsevegussesseensssetesuerenasnccaunnssensonesseceseserenane avanaasen ss 31 41. Liability of officer, director, CtC.....sssseessssesssesnerenreatenenrenscansanennsanennennenas anantants 31 42. Gemeral penalty......sccscccesssesessesscsssseenesnessesnncsvensssssteensenseansnensnesensseeeenennsn enegnetes 32 43. Misrepresentations........sssessessseseesssnerserecsseseeneentsnessesnnenisnnenscaseaenseseneneanane nnenenss 32 SANCTIONS 32 44, Administrative sanction.cccccccccccesssesesetscassscesscsseseversnetsesenerecseeanerenee nereres 32 PART VII — MISCELLANEOUS 34 AS, — Appealls..sscosssssvesvsssessevisesssvesvensssvasionsansonssssenvensentassssasnneavonsonnonsceneneaceeenennen sanenstes 34 46. Administrative proceedings and reViCWS.....ssssereseresenereersrerasectersnerse esrertanaees 34 AT, FO CSseccceccescscecvsvsovvovnvssssaesevcenesessusneneesseensesesenseneveresaesnenssneer seacensaassocaggorenaaaccon sues 35 GB: RIM C Shes cicssssnsvssnsansssncosnsanvanunnwnssmorcecavnewsenswetasawsssa casas uRaNTeaWhmUlaRe a Mea NaaNNSE SECON aR 35 QD (RO QULAWONS ss asesscsuscssswsarzivacansssmssnncussxsanccusaantinlsbscce uc cesn tN SCIS NES Tea SERIES 36 SO GUM OLN CS sss cesecessssaxccawesvarorssvewsaazescaissssnes ere et esi eUsKeS AUNT ERNTRSN ETERS RETIREES 36 Sk. ‘ConsediientiavamendMe nts escsccscsccscsmacccsennsnusnnraceconae ea awesenwnens 36 S2; FraiiSitvonnd beewsscssescsncscscsoscacssscsssscascca veces anere cee eee UES PEE ENTE 36 FIRST SCHEDULE 37 SECOND SCHEDULE 57 THIRD SCHEDULE 58 Page - 4 (Date of Assent - 11th August, 2022) Enacted by the Parliament of The Bahamas No. 36 of 2022 Page - 5 Page - 6 Page - 7 Page - 8 Page - 9 Page - 10 Page - 11 Page - 12 Page - 13 Page - 14 Page - 15 Page - 16 Page - 17 Page - 18 Page - 19 Page - 20 Page - 21 Page - 22 Page - 23 Page - 24 Page - 25 Page - 26 Page - 27 Page - 28 Page - 29 Page - 30 Page - 31 Page - 32 Page - 33 Page - 34 Page - 35 Page - 36 Page - 37 Page - 38 Page - 39 Page - 40 Page - 41 Page - 42 Page - 43 Page - 44 Page - 45 Page - 46 Page - 47 Page - 48 Page - 49 Page - 50 Page - 51 Page - 52 Page - 53 Page - 54 Page - 55 Page - 56 Page - 57 Page - 58 SCAN CODE