Financial Crime World

The Bahamas Enhances Anti-Money Laundering and Combating Terrorism Financing Regulations

Strengthening Financial System Integrity

The Bahamas has recently strengthened its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations to protect its financial system from illicit activities. The new Financial Transactions Reporting Act 2018 (FTRA) replaces the previous Act and introduces stricter provisions aimed at preventing money laundering, terrorist financing, and other financial crimes.

Key Provisions of the FTRA

  • Customer Identity Verification: Financial institutions must verify customer identities to ensure accurate records.
  • Transaction Record Keeping: Institutions must maintain detailed transaction records for monitoring and reporting purposes.
  • Suspicious Transaction Reporting: Institutions are required to report suspicious transactions to the Financial Intelligence Unit (FIU).
  • Enhanced Customer Due Diligence: Financial institutions and designated non-financial businesses and professions must conduct thorough customer due diligence.

The Role of the Financial Intelligence Unit

The FIU has been established under the FTRA to:

  • Receive and analyze information on suspicious transactions
  • Disseminate intelligence to relevant authorities
  • Collaborate with financial institutions and law enforcement agencies to prevent illicit activities

Comprehensive Framework for AML/CFT Compliance

In addition to the FTRA, several other laws have been enacted to strengthen AML/CFT compliance in the Bahamas:

  • Anti-Terrorism Act 2018: Combats terrorism financing and related activities.
  • Proceeds of Crime Act 2018: Provides a framework for confiscating proceeds of crime.
  • Financial Intelligence Unit Act 2000: Establishes the FIU and outlines its functions.

Global Compliance Standards

The Bahamas’ strengthened AML/CFT regulations align with global standards set by:

  • Financial Action Task Force (FATF): An intergovernmental organization promoting AML/CFT compliance.
  • International Monetary Fund (IMF): Supports economic stability and development through financial sector reforms.

Conclusion

The Bahamas’ commitment to strengthening its AML/CFT regulations demonstrates its dedication to maintaining a stable and secure financial system that promotes economic growth and development.