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Anti-Money Laundering Regulations for Accountants in The Bahamas

Summary

Accounting firms in The Bahamas are subject to anti-money laundering (AML) laws on two levels: the Proceed of Crime Act (POCA) and the Financial Transactions Reporting Act (FTRA). This article summarizes the key points related to when an accountant is considered a financial institution.

Accounting Firms Subject to AML Laws

  • All accounting firms in The Bahamas are subject to the Proceed of Crime Act (POCA).
  • Accounting firms offering financial intermediary services are also subject to the AML regime contained in:
    • Financial Transactions Reporting Act (FTRA)
    • Financial Intelligence Unit Authority Act
    • Related regulations

When an Accountant is Deemed a Financial Institution

An accountant is deemed a financial institution under the FTRA when:

  • Providing prescribed financial intermediary services under section 3(1)(l) of the FTRA.
  • Acting as a professional trustee or administering/managing funds on behalf of third parties under section 3(1)(j) of the FTRA (excluding those under a financial and corporate service providers license).

Key Points for Accounting Firms

  • Accounting firms offering financial intermediary services must separate their activities from general accounting firm activities.
  • They must maintain distinct records to ensure compliance with AML regulations.
  • The Commission encourages separation through physical or electronic means to avoid providing access to files and information unrelated to AML compliance.