Financial Crime World

Bahamas Financial Institution Security Standards: Meeting International Benchmarks

The Bahamas has established itself as a responsible and reliable player in the global financial community. With a strong focus on maintaining international standards for financial services, the country’s financial sector has evolved into a well-equipped and competitive industry.

Anti-Money Laundering/Countering of Terrorist Financing

The Bahamas operates within a globally integrated market for financial services, adhering to global best practices and standards in its counter-money laundering legislation. Ongoing reviews and updates to anti-money laundering (AML) and combating the financing of terrorism (CFT) laws, policies, and procedures are crucial to upholding international standards and protecting the reputation of the financial services sector.

  • The Bahamas’ AML/CFT framework is subject to regular assessment and strengthening efforts.
  • Membership in the Caribbean Financial Action Task Force (CFATF) ensures compliance with FATF-style regional best practices.

International Cooperation

The Bahamas has a robust international cooperation structure, facilitating effective exchange of information and coordination on matters related to financial services. Key components include:

  • Caribbean Financial Action Task Force (CFATF): A FATF-style regional body conducting peer reviews of its members’ AML/CFT laws, policies, and procedures.
  • Tax Information Exchange Agreements (TIEAs): The Ministry of Finance serves as the designated Competent Authority under various TIEAs to which The Bahamas is a signatory.

Requests for legal assistance from foreign jurisdictions are handled by the International Legal Cooperation Unit (ILCU) in the Attorney General’s office. Relevant legislation includes:

  • Mutual Legal Assistance (Criminal Matters) Act
  • Criminal Justice (International Cooperation) Act
  • Proceeds of Crime Act
  • International Obligations (Economic and Ancillary Measures) Act

Primary Regulatory Agencies

Central Bank of The Bahamas

The Central Bank plays a key role in regulating and supervising the banking sector, ensuring compliance with international regulatory and supervisory standards.

  • Member of various regional and international agencies:
    • Association of Banks of the Americas (ASBA)
    • Offshore Group of Banking Supervisors (OGBS)
    • Caribbean Group of Banking Supervisor (CGBS)
    • Financial Expert (Mutual Evaluations) Committee of the Caribbean Financial Action Task Force (CFATF)

Securities Commission of The Bahamas

Established in 1995, the Securities Commission regulates and oversees the activities of the securities and capital markets.

  • Member of:
    • International Organization of Securities Commissions (IOSCO)
    • Council of Securities Regulators (COSRA)

Insurance Commission of The Bahamas

The Insurance Commission regulates all insurance activity in or through The Bahamas, ensuring that companies operating in the jurisdiction are reputable and high-quality businesses.

  • Developed a risk-based supervisory methodology
  • Principles-based approach to regulation