Financial Crime World

Bahamas Strengthens Banking Regulations to Combat Financial Crime

Enhancing Transparency and Cooperation to Fight Financial Crime

The Central Bank of The Bahamas has reaffirmed its commitment to combating financial crime in the country’s banking sector through stringent regulations. In a move aimed at enhancing transparency and cooperation between financial institutions and regulatory bodies, the central bank has issued key guidelines and guidance notes on anti-money laundering (AML), combating the financing of terrorism (CFT), and counter proliferation finance (CPF) industry best practices.

Regulatory Framework

Pursuant to The Banks and Trust Companies Regulation Act, 2020, and the Central Bank of The Bahamas Act, 2020, the central bank is responsible for licensing, regulating, and supervising banks and trust companies operating within the country. As a result, all supervised financial institutions are expected to adhere to the central bank’s licensing and prudential requirements, as well as ongoing supervisory programs.

Guidelines and Guidance Notes

The Central Bank has issued key guidelines and guidance notes to provide further clarity and guidance on AML/CFT/CPF industry best practices. These documents outline the expectations for licensees in terms of:

  • Regulatory Reporting: Requirements for reporting suspicious transactions and maintaining accurate records.
  • Onsite Inspections: Frequency and scope of inspections to ensure compliance with regulatory requirements.
  • AML/CFT/CPF Protocols: Industry-standard protocols for identifying, assessing, and mitigating risks related to financial crime.

Accessing Guidelines and Guidance Notes

Industry stakeholders can access detailed information about these guidelines and guidance notes by clicking on the document title or downloading them as PDFs from the central bank’s website.

Providing Feedback

The Central Bank has made available a feedback form for stakeholders to provide input on the effectiveness of these guidelines and guidance notes, ensuring that they remain relevant and effective in addressing emerging threats.

Commitment to Combating Financial Crime

In a statement, the Central Bank emphasized its commitment to working with licensees to maintain high standards of integrity and prevent illicit activities from infiltrating the financial system.