Financial Crime World

Prevention of Money Laundering, Countering Terrorism Financing & Proliferation Financing Guidelines

Overview

The Central Bank of The Bahamas has issued guidelines on the prevention of money laundering, countering terrorism financing, and proliferation financing. These guidelines are in line with Section 49 of the Anti-Terrorism Act (ATA) and other relevant laws.

Key Obligations for Service Financial Institutions (SFIs)

Reporting Suspicious Transactions

  • Section 18.1: SFIs must report funds suspected to belong to individuals or entities involved in terrorism-related activities to the Financial Intelligence Unit (FIU).

Proliferation Financing Prohibitions

  • Section 18.2: The ATA criminalizes proliferation financing, which involves providing financial services to individuals or entities with the intention of using funds for nuclear, chemical, or biological weapons.

United Nations Security Council Resolutions (UNSCRs)

  • Section 18.3: Part IV of the ATA requires SFIs to follow procedures related to UNSCRs, including imposing financial sanctions on designated individuals and entities involved in terrorism-related activities.

Procedures for Designated Entities

  • Section 18.4:
    • When a SFI receives information about an individual or entity being designated as a terrorist entity by the UN, they must freeze all funds held in their name.
    • The SFI must inform the Attorney-General and FIU about the frozen funds.
    • The SFI must also inform the designated entity about the frozen funds.

Listed Entities

  • Section 18.5: The Attorney-General can apply to a judge for an order declaring an individual or entity a “listed entity” under the ATA, which would trigger obligations related to freezing property and restricting access to funds.

Disclosure of Property Belonging to Listed Entities

  • Section 18.6: SFIs are required to disclose the existence of any property in their possession that belongs to a listed entity to the FIU.

These guidelines outline the responsibilities of Service Financial Institutions (SFIs) in The Bahamas with respect to preventing money laundering, countering terrorism financing, and proliferation financing, as well as following United Nations Security Council Resolutions.