Paris-listed BNP Paribas has agreed to sell its wealth management operations in the Bahamas, Grand Cayman and Panama to Canada’s Scotiabank.

The transaction, for which terms were not disclosed, is expected to close in the third quarter of the year, subject to the necessary regulatory approvals.

“This agreement is a great fit with Scotiabank’s international wealth management growth strategy in the Caribbean and Latin American regions,” said Dan Wright, senior vice-president & head, Scotiabank International Wealth Management. “Upon closing, the transfer will enhance Scotiabank’s existing operations in these jurisdictions, strengthening our ability to serve the needs of clients. Today’s announcement demonstrates our commitment to growing and investing across the regions.”

Scotiabank said the deal will make the bank one of the largest wealth managers in Panama, a centre it has operated in since 1974. It has had operations in the Caymans since 1968 and the Bahamas since 1956.

BNP Paribas’ decision to pull out from the three centres was first announced in September of last year, at which time Baudouin Prot, the bank’s chief executive, said it would pull out of jurisdictions on the Organisation for Economic Co-operation and Development’s “grey list” of centres which had committed to the internationally agreed standard on tax information exchange, but had yet to substantially implement it.

However, both the Bahamas and the Cayman Islands have now been placed on the OECD’s white list, having signed the requisite 12 tax information exchange agreements. To date, Panama has signed only one.