Financial Crime World

Bahamas Banking Regulations Strengthened to Meet International Standards

A Commitment to Global Financial Responsibility

The Bahamas has taken significant steps to strengthen its banking regulations in line with international standards for cross-border transactions. This move aims to prevent money laundering and terrorism financing, while promoting legitimate economic activity.

Enhanced Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Laws

  • The country’s AML/CFT laws have been reviewed and updated to align with global best practices.
  • The Bahamas is a member of the Caribbean Financial Action Task Force (CFATF), which conducts peer reviews to assess compliance with international standards.

Improved Information Sharing for Effective Compliance

  • The Ministry of Finance, designated as the competent authority under various tax information exchange agreements (TIEAs), has enhanced its capabilities to share information with foreign jurisdictions.
  • The International Legal Cooperation Unit (ILCU) in the Attorney General’s office handles all requests for legal assistance from foreign jurisdictions.

Strengthened Oversight and Supervision by Primary Regulatory Agencies

  • The Central Bank of The Bahamas has implemented a risk-based supervisory methodology and a principles-based approach to ensure soundness and stability in the banking sector.
  • The Securities Commission of The Bahamas and Insurance Commission of The Bahamas have also strengthened their oversight and supervision of financial institutions.

Advancing Global Compliance and Economic Growth

  • The country’s regulatory framework is designed to provide products relevant to the international market place, enhance oversight and supervision of the financial services sector, and further its counter-money laundering regime.
  • The Bahamas continues to signal its commitment to operating within negotiated parameters for the global delivery of financial services by progressing its accession to the World Trade Organization (WTO).

Conclusion

By tightening its banking regulations, The Bahamas aims to maintain a stable economic environment conducive to high levels of domestic production, employment, and growth while upholding international standards.