Financial Crime World

Bahamas Takes Bold Steps to Combat Terrorism and Proliferation

In a move aimed at strengthening its defenses against terrorism and proliferation, The Bahamas has repealed and re-enacted its Anti-Terrorism Act (ATA), expanding the country’s legislative regime related to terrorism, terrorist financing, and the proliferation of weapons of mass destruction.

New Legislation Enhances Defenses Against Terrorism and Proliferation

The new legislation imposes mandatory reporting obligations on Special Financial Institutions (SFIs) and enhances mechanisms for international cooperation to combat these crimes. The ATA applies to actions, persons, and property both within and outside The Bahamas.

Defining Terrorism

According to Section 14 of the Act, terrorism is defined as any act intended to intimidate the public or coerce a government or international organization to comply with the demands of terrorists, which causes:

  • Death or serious bodily harm to a person
  • Creates a serious risk to public health or safety
  • Results in substantial damage to property

Combating Terrorist Financing

Terrorist financing can come from legitimate or illegitimate sources, including:

  • Criminal activities such as kidnapping, extortion, fraud, and drug trafficking
  • Seemingly legitimate income, such as membership dues, publication sales, or income from conventional business operations belonging to terrorist organizations

Under the new law, SFIs are required to report the existence of funds linked to terrorism or terrorist organizations to the Financial Intelligence Unit (FIU). The Act also criminalizes the financing of proliferation of weapons of mass destruction and imposes severe penalties on those found guilty.

Implementing United Nations Security Council Resolutions

The Bahamas has implemented United Nations Security Council Resolutions (UNSCRs) aimed at combating terrorism, terrorist financing, and the proliferation of weapons of mass destruction. If an individual or entity is designated as a terrorist entity by the UN Security Council, SFIs are required to freeze all funds held in their name without delay.

Expert Praise

The new legislation has been praised by international experts, who say it demonstrates The Bahamas’ commitment to combating terrorism and promoting financial stability in the region.

“The Bahamas is taking a proactive approach to addressing these critical issues,” said an expert. “By strengthening its laws and regulations, the country is sending a clear message that it will not tolerate terrorist activities or financing within its borders.”

Guidelines for Special Financial Institutions

The Central Bank of The Bahamas has issued guidelines for SFIs, outlining their obligations under the new law. SFIs are required to report any suspicious transactions related to terrorism or proliferation financing to the FIU.

Effective Immediately

The new legislation comes into effect immediately and applies to all SFIs operating in The Bahamas.