Financial Crime World

Bahamas Takes Major Step Forward in Fight Against Money Laundering and Terrorist Financing

Progress Made in Strengthening AML/CFT Framework

The Caribbean Financial Action Task Force (CFATF) has upgraded the Bahamas’ rating on 13 of the 40 anti-money laundering and counter-terrorist financing (AML/CFT) recommendations, recognizing significant progress made by the country in strengthening its framework to tackle financial crime.

Key Areas of Improvement

  • Risk Assessment: The Bahamas has moved from partially compliant to largely compliant with regards to assessing risks and applying a risk-based approach.
  • Customer Due Diligence: The country is now fully compliant with customer due diligence requirements.
  • Politically Exposed Persons: The Bahamas is also now fully compliant with regulations related to politically exposed persons.
  • Beneficial Ownership Transparency: Significant progress has been made in ensuring transparency and beneficial ownership of legal arrangements, moving from partially compliant to largely compliant.

Recommendations Maintained at Current Rating

  • Freezing and Confiscating Proceeds of Crime (Recommendation 5): The CFATF has maintained a “largely compliant” rating for this recommendation.
  • International Cooperation (Recommendation 21): The organization has also maintained its “compliant” rating for this recommendation.

Areas Requiring Further Improvement

  • Targeted Financial Sanctions Related to Terrorism (Recommendation 6): This recommendation remains partially compliant and requires further improvement.
  • Reliance on Third Parties (Recommendation 17): Additional work is needed to improve compliance in this area.

Commitment to Effective AML/CFT Measures

The upgrade demonstrates the Bahamas’ commitment to implementing effective AML/CFT measures, and its progress will continue to be closely monitored by the CFATF through regular reviews and assessments.