Financial Crime World

Bahamas Makes Significant Progress in Combating Financial Crime, Seeks Virtual Onsite Review

NASSAU, BAHAMAS - The Bahamas’ Efforts to Address AML/CTF Deficiencies

The Bahamas has made substantial progress in addressing the concerns of the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF), according to a recent report.

Background

In 2017, the CFATF’s Mutual Evaluation Report highlighted several deficiencies in The Bahamas’ anti-money laundering and combating the financing of terrorism (AML/CFT) framework. As a result, the FATF gave the country a 12-month observation period to remedy these effectiveness deficiencies.

Progress Made

Following the submission of its fourth progress report in December 2019 and a desktop review by the ICRG, the FATF deemed that The Bahamas had made sustainable progress towards addressing the “Action Plan” items. An onsite review was scheduled for April 2020, but due to the COVID-19 pandemic and travel restrictions, it has been postponed.

Seeking Virtual Onsite Review

The Bahamas has since approached the FATF directly and through CFATF and regional organizations, seeking a virtual onsite review. However, this request has not been successful, leaving the country disadvantaged as the onsite review results are required to support its release from the FATF’s Compliance Document (Grey List).

Commitment to AML/CFT Standards

Despite these challenges, The Bahamas remains committed to maintaining the highest AML/CFT standards in the global fight against financial crime. In a statement, the government reiterated that it is ready to accommodate an FATF onsite or virtual review and expects a favorable outcome.

Recent Efforts to Implement Action Plan

In recent years, The Bahamas has taken significant measures to implement its agreed action plan, including:

  • Completing and approving the National AML/CFT Risk Assessment in 2017
  • Enacting comprehensive financial sector legislation, including:
    • Proceeds of Crime Act
    • Financial Transactions Reporting Act
    • Anti-Terrorism Act
    • Register of Beneficial Ownership Register Act
  • Strengthening its regulatory regime through revised guidelines for financial and non-financial service providers, a coordinated penalty regime, and risk-based supervisory frameworks for various sectors
  • Enhancing law enforcement resources and refocusing on investigating all types of money laundering, including those with foreign predicates
  • Improving international cooperation case management capabilities, overhauling the Financial Intelligence Unit’s information technology infrastructure, and increasing training for regulatory, legal, and enforcement personnel

Recognition by CFATF and FATF

These efforts have been recognized by the CFATF and FATF, which acknowledged The Bahamas’ significant progress in addressing its AML/CFT deficiencies.

Conclusion

The Bahamas remains confident that it has materially addressed all agreed FATF “Action Plan” items and anticipates being released from the Grey List. The country’s commitment to maintaining the highest AML/CFT standards in the global fight against financial crime is unwavering, and it is ready to accommodate a review by the FATF (virtual or in-person) to validate these efforts.