Financial Crime World

Bahamas Strengthens Efforts Against Financial Crime and Proliferation

The Bahamas has made significant strides in enhancing its regulatory framework to combat financial crime and proliferation. Guidance notes issued by the government highlight the country’s efforts to prevent and prosecute financial crimes, including money laundering, terrorist financing, and proliferation offenses.

Enforcement Framework: A Key Pillar of Combatting Financial Crime

Proceeds of Crime Act (POCA) 2018

The Bahamas has strengthened its enforcement framework through the POCA 2018. This act:

  • Expanded the list of predicate offenses to include proliferation offenses and tax crimes
  • Introduced non-conviction based civil forfeiture and unexplained wealth orders, giving prosecutors new tools to target proceeds of crime

Anti-Terrorism Act 2018

The Anti-Terrorism Act 2018 has significantly increased monetary fines and imprisonment provisions for terrorism-related offenses, including:

  • Chemical and biological proliferation financing
  • Weapons of mass destruction

Financial Transaction Reporting Act: Strengthening Regulatory Compliance

The Financial Transaction Reporting Act (FTRA) 2018 introduced an administrative penalty regime to strengthen regulatory compliance. The Group of Financial Service Regulators issued penalty regimes applicable to their licensees and registrants, facilitating the enforcement of anti-money laundering (AML) provisions.

CFATF Re-rating Application: A Testament to Improvement

After a thorough review, the Bahamas was re-rated by the Caribbean Financial Action Task Force (CFATF), with significant improvements in its technical compliance with FATF Recommendations. The country now has:

  • 30 Compliant and Largely Compliant ratings
  • 10 Partially Compliant ratings

Registrar General’s Department: Enhancing Oversight Mandate

The Registrar General’s Department has enhanced its oversight mandate to improve corporate transparency and combat financial crime. Amendments to the Companies Act require Bahamian companies to:

  • Declare Nominee Shareholders
  • Maintain a Declaration of Trust on their files

These efforts demonstrate the Bahamas’ commitment to preventing and combating financial crime, including money laundering, terrorist financing, and proliferation offenses. The guidance notes provide a framework for stakeholders to understand the country’s regulatory requirements and ensure compliance with anti-money laundering and counter-terrorist financing standards.