Bahamas Makes Significant Progress in Combatting Financial Crime, Despite Pandemic Challenges
The Bahamas has made substantial progress in strengthening its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework, despite the challenges posed by the COVID-19 pandemic.
Implementing Key Reforms
According to a recent report, The Bahamas has implemented significant measures to address the deficiencies identified by the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF). These efforts have included:
- Completing a National AML/CFT Risk Assessment
- Developing a National Identified Risk Framework Strategy
- Enacting key financial sector legislation
Strengthening Regulatory Regime
The Bahamas has also strengthened its regulatory regime by:
- Issuing revised guidelines to financial and non-financial sector service providers
- Developing a coordinated penalty regime
- Implementing risk-based supervisory frameworks for various sectors
Additionally, the country has improved its law enforcement resources, refocused efforts on investigating all types of money laundering, and codified its National Confiscation Policy.
Enhancing International Cooperation
The Financial Intelligence Unit’s Information Technology infrastructure has been overhauled, and international cooperation case management capabilities have been enhanced. Furthermore, training has been provided to regulatory, legal, and enforcement personnel to strengthen their capacity to supervise financial institutions and respond to international cooperation requests.
Commitment to Maintaining High AML/CFT Standards
Despite the challenges posed by the pandemic, The Bahamas remains committed to maintaining the highest AML/CFT standards globally. However, the country is still awaiting a review by the FATF to validate its efforts, which has been delayed due to travel restrictions.
“We are ready to accommodate a review by the FATF (virtual or in-person) to validate these efforts,” said a government spokesperson. “We believe that our work has addressed all agreed FATF ‘Action Plan’ items and anticipate being released from the FATF’s Grey List.”
International Recognition
The Bahamas’ efforts have been recognized by international organizations, including:
- UNODC
- FATF
- IMPACS
- CFATF
- ACAMS
- ICA
- Academic institutions
The country’s commitment to combating financial crime is evident in its establishment of an AML Analytical Unit at the Central Bank of The Bahamas, as well as similar units at the Securities Commission and Insurance Commission.
Ongoing Commitment to Readiness
The National Identified Risk Framework Coordinator and the IRF Steering Committee are committed to ensuring that the country maintains a high level of readiness in addressing regulatory and best practice challenges in the AML/CFT/CFP space.