Bahamas’ Financial Institutions Under Scrutiny: Compliance with Security Standards
The Bahamas Financial Services Regulatory Commission Issues Warning on Money Laundering and Terrorist Financing
NASSAU, BAHAMAS - The Bahamas Financial Services Regulatory Commission (FSSRC) has issued a stern warning to all financial institutions operating in the country, emphasizing the importance of adhering to stringent security standards to combat money laundering and terrorist financing.
Registration Requirements for Financial Institutions
According to sources within the FSSRC, registration with the agency is mandatory for all financial institutions that provide prescribed services, including those offering banking, investment management, and real estate transactions. Failure to register within a specified timeframe can result in penalties of up to $5,000 per day for non-compliance.
- Prescribed Services: Banking, investment management, and real estate transactions
- Registration Requirements: Mandatory registration with the FSSRC for all financial institutions providing prescribed services
On-Site Examinations for Designated Non-Financial Businesses and Professions (DNFBPs)
The Commission has outlined specific requirements for DNFBPs that offer prescribed financial services, including on-site examinations to ensure adherence to Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) regulations.
- Designated Non-Financial Businesses and Professions: Real estate agents, land developers, precious metals dealers, and certain types of accountants
- On-Site Examinations: Required for DNFBPs offering prescribed financial services to ensure compliance with AML, CFT, and CPF regulations
Ongoing Monitoring and Reporting Obligations
In addition to registration and compliance requirements, the FSSRC has emphasized the importance of ongoing monitoring and reporting obligations for financial institutions. Failure to notify the Commission of changes in ownership, management, or operations can also result in penalties.
- Ongoing Monitoring: Required for registered financial institutions
- Reporting Obligations: Financial institutions must notify the Commission of changes in ownership, management, or operations
Key Takeaways
- Registration is mandatory for all financial institutions providing prescribed services.
- Failure to register within a specified timeframe can result in penalties of up to $5,000 per day.
- On-site examinations are required for certain DNFBPs offering prescribed financial services.
- Ongoing monitoring and reporting obligations apply to registered financial institutions.
- Penalties can be imposed for failure to notify the Commission of changes in ownership, management, or operations.