Financial Crime World

Bahamas Tightens Screws on Terrorism Financing and Proliferation

New Regulations to Combat Money Laundering, Counter Terrorism Financing, and Proliferation Financing

The Central Bank of the Bahamas has issued revised guidelines to prevent money laundering, counter terrorism financing, and proliferation financing. These new regulations aim to strengthen the country’s efforts to combat these crimes.

Repeal and Re-enactment of Anti-Terrorism Act (ATA)

The ATA has been repealed and re-enacted with expanded provisions related to:

  • Terrorism: any act intended to intimidate the public or coerce a government or international organization to comply with the demands of terrorists, which results in death, serious bodily harm, or substantial damage to property.
  • Training: supporting terrorist groups through training and capacity-building activities.
  • Weapons of Mass Destruction (WMD): financing the proliferation of WMD.

Mandatory Reporting Obligations for Special Financial Institutions (SFIs)

Under the new regulations, SFIs are required to:

  • Report suspicious transactions linked to terrorism financing, proliferation of WMD, or individuals designated by the United Nations Security Council as terrorists.
  • Freeze funds held by designated terrorist entities and notify the Attorney-General and Financial Intelligence Unit (FIU) of such transactions.

Criminalization of Financing Proliferation of WMD

The ATA criminalizes the act of financing the proliferation of WMD, including providing funds or financial services to persons intending to use such weapons for terrorist acts. The Court may:

  • Revoke a SFI’s license
  • Order its assets to be forfeited if found guilty of such an offense.

Implementation of United Nations Security Council Resolutions

The revised guidelines outline procedures for implementing United Nations Security Council Resolutions in the Bahamas, including financial sanctions against designated individuals and entities involved in terrorism and proliferation activities.

Strengthening Efforts to Combat Terrorism Financing and Proliferation

The revised guidelines aim to:

  • Strengthen the country’s efforts to combat terrorism financing and proliferation.
  • Ensure that SFIs comply with international standards and best practices.