Financial Crime World

Bahamas Takes Significant Steps to Improve Anti-Money Laundering and Combating Financing of Terrorism Efforts

The Bahamas has made significant progress in addressing its anti-money laundering and combating financing of terrorism (AML/CFT) deficiencies, according to the country’s latest report to the Financial Action Task Force (FATF).

Background

In 2017, the FATF issued a Mutual Evaluation Report (MER) that identified several effectiveness deficiencies in The Bahamas’ AML/CFT regime. In response, the country implemented a series of measures aimed at addressing these concerns.

Key Steps Taken

  • Completion and approval of its National AML/CFT Risk Assessment in 2017
  • Development and approval of a National Identified Risk Framework Strategy in 2018
  • Enactment of several pieces of legislation aimed at strengthening its AML/CFT framework, including:
    • Proceeds of Crime Act
    • Financial Transactions Reporting Act
    • Anti-Terrorism Act
    • Register of Beneficial Ownership Register Act
  • Strengthening regulatory regime by issuing revised AML/CFT guidelines to financial and non-financial sector service providers, developing a coordinated penalty regime, and implementing risk-based supervisory frameworks for credit unions, money transmission service providers, securities industry licensees and registrants, gaming houses, and designated non-financial businesses and professions
  • Strengthening oversight powers by enacting the Companies (Amendment) Act in 2019, which includes requirements for a declaration of nominee shareholders to be held at companies’ registered offices, and re-establishing the Compliance Unit

Additional Efforts

  • Improved law enforcement resources by refocusing on investigating all types of money laundering, including those with foreign predicates
  • Codification and issuance of National Confiscation Policy in 2019

Remaining Challenges

Despite these efforts, The Bahamas remains on the FATF’s grey list due to ongoing technical compliance issues related to onsite reviews, which were unable to take place due to the COVID-19 pandemic.

Government Commitment

“We are proud of the significant progress we have made in strengthening our AML/CFT framework,” said a government spokesperson. “We remain committed to maintaining the highest standards in this area and look forward to continuing our cooperation with the FATF and other international partners.”

International Recognition

The Bahamas’ efforts have been recognized by the International Monetary Fund (IMF), which has praised the country’s progress in improving its AML/CFT regime.

“The Bahamas is a leader in the region when it comes to AML/CFT compliance,” said an IMF spokesperson. “We commend the government for its commitment to strengthening this critical area and look forward to continuing our work with them.”