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Financial Crime Risk Assessment Tools in Bahamas: Understanding Key Challenges
October 4, 2022 - NASSAU, BAHAMAS
The Bahamas has made significant strides in combating financial crime in recent years, but challenges remain. To navigate these risks, organizations must conduct thorough risk assessments and understand the complexities of money laundering regulations.
Key Risks in Bahamas
Trade-based Schemes
Trade-based schemes are a major concern in The Bahamas, with little prevention, detection, or enforcement in place to combat them.
Fraud
Fraud is also a significant issue, with over 100 suspicious transaction reports filed under this category.
Human Trafficking and Drug Trafficking
Human trafficking and drug trafficking are also major concerns, with the country serving as a transit point for trafficked people and migrants attempting to enter the US.
Criminal Proceeds
An estimated $179 million to $448 million is laundered annually in The Bahamas, highlighting the need for effective anti-money laundering (AML) measures.
AML Policy Summary
The Bahamas has overhauled its AML framework in recent years, with new laws and regulations aimed at combating financial crime. However, weaknesses remain, including a paper-based system for reporting suspicious transactions and a slow-moving judicial system.
Weaknesses
- Designated non-financial businesses and professions (DNFBPs) report suspicious transactions through a manual process, hindering analysis and coordination between agencies.
- The country also lacks publicly available information on beneficial ownership and the effectiveness of its AML program.
Strengths
Despite challenges, The Bahamas has demonstrated a commitment to combating financial crime, with new laws and regulations aimed at preventing and detecting money laundering. Clear political will is evident, but more investment in software, human resources, and coordination between agencies is needed to ensure effective implementation.
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