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Government Issues New Guidelines for Anti-Money Laundering and Counterterrorism Efforts in Bahamas

The Financial Crimes Enforcement Network (FinCEN) has released new guidelines for anti-money laundering and countering the financing of terrorism (AML/CFT) efforts in the Bahamas. These guidelines aim to identify and mitigate the most significant threats facing the country.

Prioritizing Threats

According to FinCEN, the guidelines prioritize combating corruption, cybercrime, domestic and international terrorist financing, fraud, transnational criminal organizations, drug trafficking organizations, human trafficking and smuggling, and proliferation financing.

High-Risk Jurisdiction

The Bahamas is among several jurisdictions globally that have been targeted for AML/CFT efforts due to its strategic location and high-risk financial environment.

Collaboration and Implementation

“Today’s guidelines represent a significant step forward in our efforts to combat money laundering and terrorism financing in the Bahamas,” said FinCEN Acting Director Michael Mosier. “We will continue to work closely with our partners in the Bahamian government, law enforcement, and the private sector to ensure that our AML/CFT efforts are effective and efficient.”

The guidelines were developed through consultation with various stakeholders, including federal and state regulators, law enforcement agencies, and national security organizations.

Implications for the Financial Sector

In the Bahamas, the guidelines are expected to have significant implications for the country’s financial sector, which has been criticized for its lax AML/CFT regulations in the past. The government has pledged to strengthen its AML/CFT laws and enforcement mechanisms to comply with international standards.

Update Schedule

The guidelines will be updated at least every four years to reflect new or evolving threats, as required by the Anti-Money Laundering Act of 2020. In the meantime, covered institutions are not required to make immediate changes to their risk-based AML programs, but may wish to start considering how they will incorporate the guidelines into their compliance efforts.

Key Findings and Recommendations

Major Threats

  • Corruption, cybercrime, and domestic and international terrorist financing are among the most significant threats facing the Bahamas.
  • Covered institutions should prioritize combating these threats through enhanced risk assessments and monitoring.
  • The Bahamian government and financial sector must work together to strengthen AML/CFT laws and enforcement mechanisms.
  • International cooperation is essential in combating money laundering and terrorism financing, particularly in high-risk jurisdictions like the Bahamas.

Next Steps

FinCEN will continue to work with its partners in the Bahamian government, law enforcement, and the private sector to ensure effective implementation of these guidelines. The agency will also propose implementing regulations in the coming months to provide further guidance on AML/CFT compliance in the Bahamas.