The Bahamas’ Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) Legislative Framework: An Overview
Enactments Post-2018
In recent years, The Bahamas has implemented various legislative changes to enhance its AML/CFT framework. Some key enactments include:
Securities Industry (Anti-Money Laundering and Countering of Terrorism) Rules, 2019
- Established regulations for the securities industry to prevent money laundering and terrorist financing.
Financial Corporate Services Providers (Anti-Money Laundering and Countering of Terrorism) Rules, 2019
- Regulated financial corporate services providers to prevent money laundering and terrorist financing.
Non-Profit Organizations Act, 2019, Non-Profit Organizations (Amendment) Act, 2019
- Governed non-profit organizations and amended existing regulations to enhance AML/CFT measures.
Companies (Amendment) Act, 2019
- Amended company laws to improve corporate transparency and prevent money laundering.
International Obligations (Economic & Ancillary Measures) Orders
- Domesticated international sanctions related to Iraq, Afghanistan, Iran, and the Democratic People’s Republic of Korea.
Enactments in 2020
In addition to post-2018 enactments, The Bahamas introduced new laws and regulations in 2020 to further enhance its AML/CFT framework. Some key enactments include:
Digital Assets and Registered Exchanges Act, 2020
- Regulated digital assets and registered exchanges to prevent money laundering and terrorist financing.
Financial and Corporate Service Providers Act, 2020
- Governed financial and corporate service providers to enhance AML/CFT measures.
Financial and Corporate Providers (Anti-Money Laundering/Countering Financing of Terrorism) (Amendment) Rules, 2020
- Amended existing regulations for financial and corporate service providers to improve AML/CFT compliance.
Financial Transaction Reporting (Amendment) Regulations, 2021
- Amended financial transaction reporting requirements to enhance AML/CFT measures.
Insurance (Amendment) Act, 2021
- Amended insurance laws to improve regulatory oversight and prevent money laundering.
Investment Funds (Prescribed Jurisdictions) Rules, 2020
- Regulated investment funds to prevent money laundering and terrorist financing.
Investment Funds (Amendment) Act, 2020
- Governed investment funds to enhance AML/CFT measures.
Securities Industry (Corporate Governance) (Amendment) Rules, 2020
- Amended corporate governance requirements for the securities industry to improve AML/CFT compliance.
Register of Beneficial Ownership (Amendment) Act, 2020
- Amended the register of beneficial ownership regulations to enhance transparency and prevent money laundering.
Regulatory Framework
The Bahamas’ regulatory framework has been revised and enhanced to address emerging and current risks. Key developments include:
Revised and Enhanced AML/CFT/CPF Guidelines
- Issued by the Central Bank, Compliance Commission, Gaming Board, Insurance Commission, and Securities Commission.
- Aimed at improving AML/CFT compliance among regulated entities.
Risk Assessments and Supervisory Programs
- Conducted by relevant regulatory bodies to ensure their programs capture emerging and current risks.
- Development of risk-based supervisory programs to enhance regulatory oversight.