Here’s the rewritten article in markdown format:
Bahamas Compliance Commission Implements Risk-Based AML/CFT Supervisory Regime to Mitigate Money Laundering and Terrorist Financing Risks
Introduction
The Bahamas Compliance Commission has taken a significant step in its efforts to combat money laundering and terrorist financing (ML/TF) by implementing a risk-based anti-money laundering and combating the financing of terrorism (AML/CFT) supervisory regime. This new approach is designed to enable the Commission to better assess the level of risk posed by designated non-financial business and professions (DNFBPs) under its supervision, as well as the sector as a whole.
Risk-Based AML/CFT Supervisory Regime
Under this regime, DNFBPs, regardless of their size or complexity, are required to take appropriate measures to identify, assess, and understand the risks associated with their operations. This includes developing and implementing a comprehensive risk management system that incorporates continuous identification, measurement, monitoring, and control of identified risks.
Risk Assessment Requirements
DNFBPs must conduct a risk assessment prior to launching new products or business practices, as well as when introducing new technologies or experiencing significant changes in their operations. The risk assessment must consider factors such as:
- Geographic area
- Product or service
- Transaction type
- Means of delivery
- National-level risk assessments and regulatory guidance
Documenting Risk Assessment Outcomes
The outcome of the risk assessment must be documented in writing and kept up-to-date, with DNFBPs making it available to relevant authorities upon request. This enables them to focus their AML efforts and allocate resources optimally to mitigate ML/TF risks.
Guidance on Conducting a Risk Assessment
The Commission has also provided guidance on the major components to be considered when conducting a risk assessment, including:
- Identification
- Analysis
- Management
- Mitigation
- Ongoing monitoring of risks
DNFBPs are encouraged to review the Commission’s Codes of Practice for further information on conducting effective risk assessments.
Significance of the Implementation
The implementation of this risk-based AML/CFT supervisory regime is a significant step forward in the Bahamas’ efforts to combat ML/TF and ensure the integrity of its financial system.