Financial Crime World

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The Bahamas Makes Strides in AML/CPF Framework

Nassau, Bahamas - The Bahamian government has been actively working to strengthen its legal and regulatory framework for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Countering Financing Proliferation (CPF). In recent years, the country has enacted a series of legislation aimed at addressing deficiencies and gaps in its AML/CPF regime.

Enactments

In 2019, several pieces of legislation were passed to enhance the AML/CFT/CPF framework. These include:

  • Securities Industry (Anti-Money Laundering and Countering of Terrorism) Rules, 2019: Incorporated new and enhanced AML/CFT customer due diligence provisions for licensees and registrants supervised by the Securities Commission of The Bahamas.
  • Financial Corporate Services Providers (Anti-Money Laundering and Countering of Terrorism) Rules, 2019: Incorporated new and enhanced AML/CFT customer due diligence provisions for Financial Corporate Service Providers (FCSPs).
  • Non-Profit Organizations Act, 2019: Provided for the regulation and supervision of non-profit organizations in compliance with FATF Recommendation 8.
  • Companies (Amendment) Act, 2019: Strengthened sanctions to enforce statutory requirements and obligations.

International Obligations

The Bahamas has also domesticated United Nations Security Council Resolutions on terrorists and those involved in proliferation through International Obligations (Economic & Ancillary Measures) Orders. These include orders related to:

  • Iraq
  • Afghanistan
  • Iran
  • Democratic People’s Republic of Korea

Enactments in 2020-2021

In 2020-2021, The Bahamas enacted further legislation aimed at enhancing its AML/CFT/CPF framework. Notable enactments include:

  • Digital Assets and Registered Exchanges Act, 2020
  • Financial and Corporate Service Providers Act, 2020
  • Financial and Corporate Providers (Anti-Money Laundering / Countering Financing of Terrorism) (Amendment) Rules, 2020
  • Insurance (Amendment) Act, 2021
  • Investment Funds (Prescribed Jurisdictions) Rules, 2020
  • Securities Industry (Corporate Governance) (Amendment) Rules, 2020

Regulatory Framework

The Central Bank of The Bahamas, the Compliance Commission of The Bahamas, the Gaming Board of The Bahamas, the Insurance Commission of The Bahamas, and the Securities Commission of The Bahamas have all issued revised and enhanced AML/CFT/CPF guidelines to licensees and registrants. Additionally, these regulatory bodies have refreshed or conducted risk assessments of licensees and registrants to ensure that their regulatory programs capture all emerging and current risks.

Ongoing Efforts

The Bahamian government is committed to continuing its efforts to strengthen its AML/CFT/CPF framework. Several Bills are currently being considered for enactment, including:

  • Anti-Terrorism (Amendment) Bill, 2021
  • Proceeds of Crime (Amendment) Bill, 2021

Conclusion

The Bahamas’ commitment to strengthening its AML/CFT/CPF framework is evident in its recent enactments and ongoing efforts. The country’s regulatory bodies are working closely together to ensure that the financial sector remains robust and resilient against money laundering and terrorist financing. As a result, The Bahamas is well-positioned to maintain its reputation as a stable and secure financial center.