Financial Crime World

Bahamas Works to Eradicate Terrorist Financing, Money Laundering Threats

Nassau, Bahamas - The Caribbean nation of the Bahamas has made significant strides in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework.

Notable Progress in AML Compliance

In recent years, the Bahamas has taken substantial steps to address AML/CFT issues and demonstrate its commitment to preventing financial crimes. Some notable progress includes:

  • Changes to Beneficial Property Registration Act: In September 2020, the Beneficial Property Registration Act underwent significant changes aimed at increasing transparency and accountability in property ownership.
  • Meeting of Mutual Evaluation Report (MER) Recommendations: The Caribbean Financial Action Task Force’s MER found that 18 non-full and 20 largely compliant recommendations had been met.
  • Removal from EU Money Laundering Jurisdictions List: In January 2022, the Bahamas was removed from the EU money laundering jurisdictions list due to its efforts to strengthen AML regulations.

Money Laundering Risks Remain

Despite these improvements, the Bahamas still faces money laundering risks similar to other tax havens. Some examples include:

  • Augusto Pinochet’s Offshore Shell Companies: In 2020, it was reported that former Chilean dictator Augusto Pinochet used offshore shell companies to launder nearly $12 million.
  • Bahamas-Based Offshore Provider Accused of Laundering Over $1 Billion: A Bahamas-based offshore provider was accused of laundering over $1 billion in funding.

AML Provisions in Bahamian Law

The Bahamas has implemented several laws and regulations aimed at preventing money laundering, including:

  • Proceeds of Crime Act
  • Financial Intelligence Unit Act
  • Financial Transactions Reporting Act (FTRA)
  • Financial Intelligence Regulations
  • Anti-Terrorism Act

These provisions require financial institutions to report suspicious transactions, verify customer identities, and provide training on AML laws.

Anti-Money Laundering Solutions for the Bahamas

To effectively address the risks associated with financial crimes, businesses in the Bahamas can benefit from AI-driven AML solutions, such as those offered by Sanction Scanner. These advanced tools enable organizations to meet their AML obligations efficiently and stay at the forefront of compliance efforts.

Conclusion

As the Bahamas continues to work towards eradicating terrorist financing and money laundering threats, it is essential for financial institutions and governments around the world to remain vigilant and support the country’s efforts to maintain a safe and secure financial system.