Bahamas Banks Must Comply with Stringent Regulations
The Compliance Commission of The Bahamas has implemented a range of regulations aimed at curbing money laundering and terrorist financing activities in the country’s financial sector.
Mandatory Registration for Financial Institutions
According to the Financial Transactions Reporting Act (FTRA) 2018, all financial institutions operating in the Bahamas are required to register with the Commission. This includes:
- Designated non-financial businesses and professions (DNFBPs) that provide prescribed financial services, such as:
- Friendly societies
- Real estate agents and brokers
- Land developers
- Precious metal and stone dealers
- Trustees
- Administrators
- Investment managers
- Others
Failure to register within one month of establishing a business or commencing operations can result in penalties of up to $5,000 per day.
Notification Requirements for Changes
Additionally, financial institutions are required to notify the Commission of any changes to their registered office, principal place of business, beneficial ownership, director, partner, compliance officer, and money laundering reporting officer within three months. Failure to comply with this requirement can also lead to penalties of up to $5,000 per failure.
On-Site Examinations for Certain DNFBPs
The FTRA 2018 requires certain DNFBPs to submit to on-site examinations aimed at ensuring they are complying with anti-money laundering (AML), counter-terrorist financing (CFT), and counter-proliferation financing (CPF) regulations. These requirements apply to financial institutions that engage in activities such as:
- Buying or selling real estate
- Providing financial services related to precious metals or stones
- Administering funds on behalf of others
- Offering other prescribed financial services
Emphasis on Compliance
The Commission has emphasized the importance of compliance with these regulations, stating that any failure to do so can result in serious legal consequences. Financial institutions are advised to familiarize themselves with the requirements of the FTRA 2018 and ensure they are fully compliant with all applicable regulations.
Supervision by the Compliance Commission
The Compliance Commission is responsible for supervising the financial sector in the Bahamas and ensuring that financial institutions comply with AML/CFT/CPF regulations. The Commission provides an online registration platform for financial institutions, which can be accessed here.
By complying with these stringent regulations, financial institutions in the Bahamas can help prevent money laundering, terrorist financing, and other financial crimes, while maintaining a safe and secure environment for customers.