Financial Crime World

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Regulating Financial Services in The Bahamas

The Group of Financial Services Regulators (GFSR) plays a crucial role in regulating financial services in The Bahamas. As members of GFSR, various institutions are responsible for overseeing banks, securities dealers, insurance companies, and other financial institutions to ensure compliance with regulations.

GFSR Members

The following institutions comprise the Group of Financial Services Regulators:

  • Securities Commission of The Bahamas
  • Insurance Commission of The Bahamas
  • Gaming Board of The Bahamas
  • Financial Intelligence Unit (Observer)

Addressing Regulatory Deficiencies

In 2015, a Mutual Evaluation Report by the Caribbean Financial Action Task Force identified several deficiencies in The Bahamas’ compliance with FATF recommendations. To address these issues, legislative reforms and a strengthened regulatory regime were implemented between 2018-2019.

Key Legislative Reforms

The following measures were introduced to strengthen regulations:

  • Financial Transaction Reporting Act 2018: Requires financial institutions to report suspicious transactions.
  • Anti-Terrorism Act, 2018: Enhances laws against terrorist financing and money laundering.
  • Travelers Currency Declaration Act, 2005: Mandates travelers to declare cash exceeding a certain amount.
  • Proceeds of Crime Act, 2018: Outlines procedures for confiscating proceeds from crime.
  • Register of Beneficial Ownership Act, 2018: Requires businesses to disclose beneficial ownership information.

Outcome

As a result of these efforts, The Bahamas was removed from the FATF’s Grey List in December 2020.