Compliance Risk Management in The Bahamas: Key Challenges and Laws to Navigate
In today’s complex financial landscape, understanding the risks and responsibilities of money laundering challenges for different jurisdictions is crucial. VinciWorks examines the key Anti-Money Laundering (AML) challenges and laws in The Bahamas, providing valuable insights for organizations looking to assess customer, geographic, or matter risk.
Key AML Challenges
- Trade-based schemes: identified as a major concern by the National Risk Assessment, with little done to prevent, detect, or enforce these schemes.
- Fraud: over 100 suspicious transaction reports filed under fraud, the highest of any category.
- Human trafficking and drug trafficking: estimated $179 million to $448 million laundered every year in The Bahamas.
The Bahamas’ AML Regulatory Framework
The Bahamas has made significant strides in its AML regulatory framework, having been removed from the Financial Action Task Force (FATF) grey list in 2020. However, there are still weaknesses to be addressed:
- Designated non-financial businesses and professions report suspicious transactions through a paper-based system, which hampers reporting and analysis.
- The judicial system is slow-moving, with cases often pending for years.
Strengths and Commitment to Tackling Financial Crime
Despite these challenges, there are strengths to note:
- Following the country’s fourth round mutual evaluation in 2017, The Bahamas has demonstrated a clear commitment to tackling financial crime, resulting in new laws and regulations.
- However, much of this legislation remains untested.
Staying Ahead of Compliance Risk Management in The Bahamas
Organizations operating or looking to expand into The Bahamas would do well to understand these key challenges and laws. VinciWorks’ free guide provides an overview of the key AML issues and country-by-country assessment of AML risks and laws. Download your copy today to stay ahead of compliance risk management in this jurisdiction.