Financial Crime World

Bahamas Regulatory Requirements for Financial Institutions Tighten Up

New Regulations Strengthen Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Measures

The Bahamas Compliance Commission has introduced new regulations to enhance AML/CTF measures in the financial sector. As of January 1, 2018, all financial institutions operating in the country are required to register with the commission under the Financial Transactions Reporting Act.

Registration is Mandatory

  • All financial institutions, including banks, credit unions, and other licensed entities that provide financial services must register with the commission.
  • Failure to register within one month of establishing business or by January 31, 2018, for existing institutions will result in a penalty of $5,000 per day until the institution complies.

Notifying Changes

  • Institutions must notify the commission of any changes to their:
    • Registered office
    • Principal place of business
    • Beneficial ownership
    • Directors
    • Partners
    • Compliance officers
    • Money laundering reporting officers within three months.
  • Failure to do so will incur a penalty of $5,000 per failure.

DNFBPs Face On-Site Examinations

  • Designated Non-Financial Business and Professions (DNFBPs) offering prescribed financial services, including:
    • Real estate agents
    • Land developers
    • Precious metal dealers
    • Certain professional services firms must undergo on-site examinations.
  • These exams will assess their AML/CTF controls and procedures.

Regulated Entities Face Supervisory Control

  • Financial institutions regulated by the Central Bank, Securities Commission, Registrar of Insurance, or Gaming Board will be subject to supervisory control under the Financial Transactions Reporting Act.
  • This includes:
    • Banks
    • Insurance companies
    • Securities dealers
    • Gaming operators

The new regulations aim to strengthen AML/CTF measures in The Bahamas, ensuring that financial institutions comply with international standards and prevent the misuse of financial systems for illicit activities.