Bahamas Banks Face Strict Compliance Regulations

Preventing Money Laundering and Terrorism Financing

The Central Bank of The Bahamas is taking a firm stance on anti-money laundering, countering the financing of terrorism and proliferation financing regulations. This ensures that banks and other financial institutions in the country adhere to strict guidelines.

Regulatory Responsibilities

As the primary regulator for banking and trust companies, payment service providers, co-operative credit unions, and registered representatives, the Central Bank is responsible for:

• Developing and enforcing laws and regulations aimed at preventing and detecting money laundering, terrorist financing, and proliferation financing
• Conducting off-site surveillance and on-site examinations of supervised financial institutions to ensure compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations

Risk-Based Supervisory Regime

The Central Bank assesses the risks associated with money laundering, terrorist financing, and proliferation financing both on a national and individual institution level. This involves:

• Conducting off-site surveillance to monitor financial institutions’ compliance
• On-site examinations to ensure effective AML/CFT measures are in place

Guidance and Training

The Central Bank provides guidance and training to financial institutions to help them understand their obligations and implement effective AML/CFT measures.

Outstanding Achievement

The Central Bank’s efforts have yielded impressive results, with The Bahamas achieving technical compliance ratings of “Compliant and Largely Compliant” in all 40 of the Financial Action Task Force (FATF) Recommendations. This achievement makes The Bahamas only the second jurisdiction in the Caribbean, South, and North American regions to attain such a high standard.

Maintaining Integrity

The Central Bank’s role is crucial in preventing and detecting financial crimes by ensuring that supervised financial institutions have effective systems and controls in place to detect and deter money laundering, terrorist financing, and proliferation financing activities. With its stringent regulations and close monitoring of financial institutions, the Central Bank is working tirelessly to maintain the integrity of The Bahamas’ financial system and protect it from illegal activities.