Financial Crime World

Bahamas Toughens AML and CFT Regulations

The Bahamas has taken significant steps to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. The country has introduced a series of amendments aimed at enhancing transparency and accountability in the financial sector.

Financial Transactions Reporting Act, 2018

  • Requires financial institutions to verify the identity of existing and prospective customers and clients
  • Maintains records for prescribed periods
  • Reports suspicious transactions involving proceeds of criminal conduct
  • Introduces new provisions on risk assessment and internal control obligations
  • Oversees foreign branches and subsidiaries
  • Prohibits conducting business with shell banks

Financial Transactions Reporting Regulations, 2018

  • Sets transactional thresholds for various sectors, including:
    • Occasional transactions
    • Patrons of gaming houses and casinos
    • Jewelers and dealers in precious stones and metals
  • Enhances customer due diligence requirements for financial institutions and designated non-financial business and professions

Financial Intelligence (Transaction Reporting) Regulations, 2001

  • Requires financial institutions to establish:
    • Employee training procedures
    • Identification procedures
    • Record-keeping procedures
    • Internal reporting procedures
    • Appoint a Money Laundering Reporting Officer

Anti-Terrorism Act, 2018

  • Criminalizes terrorism and expands the legislative regime related to criminalizing terrorism financing, training, and support for terrorist groups
  • Imposes mandatory reporting obligations on supervised financial institutions
  • Enhances mechanisms for international cooperation to combat terrorism and proliferation of weapons of mass destruction

Proceeds of Crime Act, 2018

  • Aims to combat identified risks, prevent, and facilitate the investigation of money laundering, terrorism financing, corruption, proliferation of weapons of mass destruction, and human trafficking
  • Grants the court powers to compel the forfeiture of proceeds of crime, including cash
  • Imposes proportionate penalties for violations

Financial Intelligence Unit Act, 2000

  • Establishes and governs the Financial Intelligence Unit, responsible for:
    • Receiving suspicious transaction reports related to or may relate to the proceeds of crime
    • Analyzing and obtaining information from these reports
    • Disseminating information to relevant authorities

International Cooperation

  • Enacted legislation to facilitate evidence proceedings in other jurisdictions, enabling the Supreme Court to obtain evidence from The Bahamas for purposes of foreign civil and criminal proceedings

Financial and Corporate Service Providers Act, 2000

  • Provides a broad regime of regulation and accountability in the provision of financial and corporate services
  • Empowers the Inspector of Financial and Corporate Services to:
    • Maintain a general review of financial and corporate services
    • Conduct annual on-site and off-site examinations
    • Require maintenance of a public register of financial and corporate service providers