Financial Crime World

The Bahamas’ Compliance with CFATF Requirements for Non-Profit Organisations (NPOs)

Introduction

The Caribbean Financial Action Task Force (CFATF) has been monitoring The Bahamas’ compliance with its requirements regarding Non-Profit Organisations (NPOs). In this report, we will summarize the key points related to each criterion and assess the country’s progress in addressing these requirements.

Criterion 8.5(a): Powers of Investigation

  • The Royal Bahamas Police Force has general police powers to obtain production orders from any source to further investigations in any crime.
  • The Financial Intelligence Unit is obligated to provide information that may relate to the commission of an offense under the Anti-Terrorism Act.

These provisions demonstrate a clear commitment to investigating and preventing money laundering and terrorism financing activities within NPOs.

Criterion 8.5(b): Investigation and Regulation

  • Pursuant to Regulation 4(e) of the Non-Profit Organisations (Anti-Money Laundering and Counter Terrorism Financing)(No. 2) Regulations, 2022, the Registrar is responsible for carrying out investigations to examine NPOs suspected of being exploited for money laundering or terrorism financing.
  • The Royal Bahamas Police Force has expertise in investigating financial crimes and money laundering.

The regulations establish a clear framework for investigation and regulation of NPOs, ensuring that any suspicious activities are thoroughly examined.

Criterion 8.5(c): Access to Information

  • Regulation 4(f) of the Non-Profit Organisations (Anti-Money Laundering and Counter Terrorism Financing)(No. 2) Regulations, 2022 allows for full access to information on the administration and management of NPOs during investigations.
  • The Registrar General has power to require any person to provide information that is relevant to the discharge of the functions of the Registrar.

These provisions enable effective investigation and monitoring of NPOs by providing unfettered access to relevant information.

Criterion 8.5(d): Information Sharing

  • Regulation 4(g) of the Non-Profit Organisations (Anti-Money Laundering and Counter Terrorism Financing)(No. 2) Regulations, 2022 requires the Registrar to establish mechanisms for sharing information with the Commissioner of Police and the Financial Intelligence Unit when there is suspicion or reasonable grounds to suspect that an NPO is involved in money laundering or terrorism financing.

This provision promotes cooperation and coordination among law enforcement agencies, ensuring that any suspicious activities are promptly reported and addressed.

Criterion 8.6: International Cooperation

  • The Attorney General remains the competent authority for international cooperation on NPOs, and no deficiency was cited.

The Bahamas has maintained a strong commitment to international cooperation in combating money laundering and terrorism financing through its NPOs.

Conclusion

Overall, it appears that The Bahamas has made significant progress in addressing CFATF requirements regarding NPOs. However, further analysis is required to determine if these developments have adequately addressed any identified deficiencies.