Financial Crime World

Here is the article in markdown format with proper headings, subheadings, and bullet points:

Action Plan to Address Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Issues in The Bahamas

Current Situation

The current situation in The Bahamas presents several challenges when it comes to addressing AML/CFT issues. These include:

  • Limited Focus on AML/CFT: Accountants in The Bahamas primarily focus on internal auditing, operational reviews, and forensic accounting, rather than AML/CFT.
  • Lack of Supervisory Framework for NPOs: Non-Profit Organizations (NPOs) lack an appropriate supervisory framework, but most are restricted to operating within The Bahamas with limited international access.
  • Susceptibility to Money Laundering and Terrorism Financing: Lawyers provide a wide range of services susceptible to money laundering and terrorism financing.

Action Plan

The action plan involves six key tracks to strengthen the AML/CFT regime in The Bahamas:

1. Risk-based Supervision

Develop and implement comprehensive risk-based supervisory frameworks for regulatory agencies (SCB, CC, GB, and RGD).

2. AML/CFT Regime Enhancement

Review the International Organization for Economic Co-operation and Development Anti-Money Laundering Group (IOEAMA) and its sufficiency vis-à-vis the Financial Action Task Force (FATF) Recommendations.

3. Domestic Cooperation and Coordination

Enhance domestic cooperation and coordination among agencies to ensure effective implementation of AML/CFT measures.

4. Sanctions, Intelligence, and Enforcement

Strengthen sanctions, intelligence, and enforcement efforts to prevent and detect money laundering and terrorism financing activities.

5. International Cooperation

Establish an efficient and effective system for international cooperation to combat money laundering and terrorism financing.

6. Awareness Raising

Raise awareness among all stakeholders and the general public on AML/CFT issues to promote a culture of compliance and prevent money laundering and terrorism financing.

Legislative Framework

The Bahamas has enacted various legislation to combat money laundering and terrorism financing, including:

  • Anti-Terrorism Act, 2004: Prohibits terrorist acts and provides for the investigation and prosecution of such acts.
  • Banks and Trust Companies Regulation Act, 2000: Regulates banks and trust companies to prevent money laundering and other financial crimes.
  • Prevention of Bribery Act, 2010: Prohibits bribery and corruption in all forms.
  • Central Bank of The Bahamas Act, 2000: Establishes the Central Bank of The Bahamas as a regulator of the banking sector.
  • Financial Intelligence Unit Act, 2000: Establishes the Financial Intelligence Unit to collect and analyze financial intelligence related to money laundering and other financial crimes.
  • International Business Companies Act, 2000: Regulates international business companies to prevent money laundering and other financial crimes.

Conclusion

The action plan aims to strengthen the AML/CFT regime in The Bahamas by addressing gaps and enhancing cooperation among agencies. It also seeks to raise awareness among stakeholders and the general public on the importance of combating money laundering and terrorism financing.