Financial Crime World

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Regulations in the Bahamas

Overview

This document provides a comprehensive overview of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations in the Bahamas. It covers key aspects of customer due diligence, risk assessment, and ongoing monitoring to prevent money laundering and terrorist financing.

Customer Due Diligence (CDD)

The process of verifying the identity of customers, assessing their risk profile, and monitoring transactions is crucial in preventing money laundering and terrorist financing. The following are the main types of CDD:

Standard Risk Customer

  • A customer who is permanently resident in the country
  • Has a salaried job or other transparent source of income
  • Requires standard due diligence measures

Simplified Due Diligence (SDD)

  • The lowest level of due diligence for customers who pose little risk
  • Public companies listed on a stock exchange and subject to disclosure requirements are exempt from documentary evidence verification

Ongoing Customer Due Diligence (OCDD)

  • Revisiting and re-verifying customer information to ensure that transactions are consistent with their risk profile

Key Aspects of the Regulations

  • Verification of customer identity through documentary evidence
  • Assessment of customer risk profiles and monitoring of transactions
  • Obligation to verify beneficial owners in certain cases
  • Compliance with international best practices and legislative requirements

Mitigation Measures

  • Focusing attention and resources on high-risk customers
  • Predicting activities that customers are likely to engage in
  • Identifying unusual or illegal activity during the course of business relationships

Exemptions

Certain entities are exempt from documentary evidence verification, including:

  • Financial institutions licensed by the Central Bank of The Bahamas
  • Central or local government agencies
  • Publicly traded companies listed on The Bahamas International Stock Exchange

Conclusion and Contact Information

For further questions and guidance on AML/CFT legislation and codes, please contact:

[Insert contact information]