The regulations define payment services related terminologies in the beginning to prevent any wrongful interpretation. Especially payment institution and payment service providers are differentiated, because payment service provider is also regulated by the Banks and Trust Companies Regulation Act, and The Bahamas Co-operative Credit Union Act.
In Part II and Part III, the regulations mandate licensing payment institutions through proper procedure by providing adequate documents to the Central Bank of The Bahamas. Payment institutions can be deprived the status and license, if they do not comply with terms and conditions to provide payment services that are specified in the regulations.
The Bank of Central Bahamas holds the authority to oversight and to perform inspections. In case of infringements, payment institutions will be penalized with fines and fees.