Financial Crime World

Bahamas Financial Crime Unit: Amplifying Investigative Capabilities Against Money Laundering and Terrorist Financing

Background

The Bahamas, known for its beautiful tourist destinations and financial hub, has been facing challenges with financial crimes, particularly money laundering and terrorist financing (ML/TF). To combat these issues effectively, the Bahamas Financial Crime Unit (FCU) was established in August 2018.

FCU Mandate

The FCU, formed by the merger of the Business & Technology Crimes Unit, Central Detective Unit, Tracing & Forfeiture Section, and Drug Enforcement Unit, is responsible for:

  1. Providing a renewed focus on ML/TF investigations
  2. Examining proactive and reactive investigations
  3. Studying parallel proceedings
  4. Managing third-party laundering
  5. Investigating proceeds from foreign predicate offenses
  6. Handling standalone money laundering cases

The FCU’s mandate covers offenses specified in the Penal Code, Proceeds of Crime Act, Prevention of Bribery Act, Criminal Procedure Code, and Evidence Act.

Types of Investigations

The FCU conducts two main types of investigations:

  • Proactive investigations: Initiated following disclosures made by banks and financial institutions.
  • Reactive investigations: Instigated when criminals, apprehended for predicate offenses, show signs of money laundering or other criminal activities.

Money Laundering Statistics

Since its inception, the FCU has recorded a substantial increase in money laundering investigations and prosecutions:

  1. 72 money laundering cases between 2016 and 2019
  2. 37convictions from these cases

Conclusion

The FCU collaborates closely with various government agencies, financial regulators, industry partners, and the private sector to combat financial crimes using Orders and Investigative Analytics. However, the unit faces challenges, including:

  1. Limited resources
  2. Difficulties in ML/TF investigation and prosecution
  3. Insufficient training
  4. Inadequate information from foreign LEAs in a timely manner

To address these hurdles, the next steps for the FCU include:

  1. Boosting ML/TF investigation and prosecution
  2. Engaging the public and private sector partnerships
  3. Providing ongoing training
  4. Fosteringsustainable relationships with stakeholders

For additional information, contact ASP Debra Thompson at the Financial Crime Unit, located at #55 Nassau Street. Telephone: 242 -356-6025/7.