Financial Crime World

The Bahamas Improves Anti-Money Laundering (AML) and Combating Financing Terrorism (CFT) Regime

Key Initiatives

The Bahamas has made significant efforts to strengthen its anti-money laundering (AML) and combating financing terrorism (CFT) regime. The following key initiatives have been implemented:

  • Introduction of Non-Conviction Based Civil Forfeiture and Unexplained Wealth Orders:
    • Allows prosecutors to target proceeds of crime for confiscation
  • Enhanced Investigative Powers:
    • Enhanced search, seizure, forfeiture, freezing, and confiscation powers to assist law enforcement and prosecutors
  • Anti-Terrorism Act 2018:
    • Significantly increased monetary fines and imprisonment provisions
    • Introduced new offenses related to chemical and biological proliferation financing
  • Financial Transaction Reporting Act, 2018:
    • Strengthened the regulatory toolkit with an administrative penalty regime for non-compliance with AML provisions

CFATF Re-rating Application

In November 2018, The Bahamas submitted a re-rating application to the Caribbean Financial Action Task Force (CFATF) following significant efforts to improve its AML/CFT regime. As a result of this effort, The Bahamas was re-rated as follows:

  • Fully Addressed Deficiencies:
    • Recommendations 2, 10, 12, 17, and 30 (C compliant)
  • Addressed Most Technical Compliance Deficiencies:
    • Recommendations 1, 15, 18, 23, 25, 32, and 35 (LC compliant)
  • Upgraded from NC to PC in Recommendation 6

Registrar General’s Department

The Registrar General’s Department has been strengthened with new provisions requiring companies to declare beneficial ownership and maintain a declaration of trust. Amendments were made to include sanctions for non-compliance with statutory documentation filings and annual fees.

Enhanced Oversight Mandate: The Registrar General’s Department now has the authority to require companies to:

  • Declare beneficial ownership
  • Maintain a declaration of trust

Sanctions for Non-Compliance: Companies that fail to comply with these requirements will face sanctions, including:

  • Penalties for non-compliance with statutory documentation filings and annual fees