Bahamas Fails to Combat Money Laundering, Report Reveals

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A scathing report by the global anti-money laundering body Financial Action Task Force (FATF) has exposed the Bahamas’ woeful performance in combating financial crime and corruption.

Banking Sector Plagued by Money Laundering

The country’s banking sector, touted as one of the world’s leading international financial centers, is plagued by money laundering and illicit financial flows. The report highlights concerns over:

• Low number of suspicious transaction reports filed by financial institutions
• Lack of capacity in law enforcement agencies to effectively pursue money laundering cases
• Rare use of sanctions against perpetrators
• No convictions for money laundering in recent years

Report Highlights Poor Performance

The report scores the Bahamas poorly on 11 effectiveness measures, with six areas rated “low” and five rated “moderate”. The country’s authorities admit to a high risk of money laundering in the private banking and trust company sectors.

Criticism from Business Leaders vs. Officials’ Concerns

While some business leaders have criticized what they see as overly stringent anti-money laundering requirements, the findings of the report lend support to public officials who have been sounding the alarm about the Bahamas’ failings.

Massive Offshore Sector

The country’s offshore sector is massive, with assets valued at over US$279 billion. This makes it difficult to ignore the issue and underscores the need for concrete steps to address concerns.

Global Awareness of Illicit Financial Flows

The report’s publication comes amid growing awareness of the costs of illicit financial flows and their impact on global economies. It remains to be seen whether the Bahamas will take concrete steps to address these concerns or continue to turn a blind eye to its money laundering problems.