Financial Crime World

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Compliance Guide for Businesses Operating in the Bahamas

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Anti-Money Laundering (AML) and Know Your Customer (KYC) Regulations

The Bahamas has implemented strict regulations to prevent money laundering and ensure that businesses operating within its jurisdiction adhere to anti-money laundering (AML) and know your customer (KYC) guidelines.

Identity Verification

Identity verification is a crucial aspect of AML and KYC regulations in the Bahamas. Here are some key points to note:

  • Multiple Instances: Identity verification is not limited to one-time instances; it’s required in multiple instances as per regulations.
  • Application and Timing: The application and timing of identity verification depend on the business requirements and its conveyance to Shufti Pro (a third-party service provider).
  • Customer Onboarding: Identity verification should be pursued when onboard a new customer, particularly if dealing with transaction data and meeting monetary thresholds defined by Bahamian regulations.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence Measures

As per Bahamian regulations, businesses must determine if their customers are PEPs or exhibit higher risk profiles. Shufti Pro provides AML Screening services to fulfill these obligations by screening ID attributes against global regulatory authorities’ watchlists.

Reliance on External Services

Bahamian regulations permit seeking third-party services for due diligence measures. However, businesses remain liable for maintaining compliance and fulfilling AML and KYC obligations, even if relying on external services like Shufti Pro.

Record Retention

Businesses are required to retain data for not less than five (5) years as part of their AML and KYC obligations for due diligence. If processed by a third-party, businesses must collect necessary information from the third party without undue delay.

By following these guidelines, businesses operating in the Bahamas can ensure compliance with AML and KYC regulations, maintain a strong reputation, and protect themselves against potential risks and penalties.