Financial Crime World

Combating Money Laundering and Terrorist Financing in The Bahamas

Sectors with High ML/TF Risk

The following sectors are identified as having a high risk of money laundering and terrorist financing:

Accounting Profession

  • Practitioners are exposed to criminal exploitation due to their involvement in various transactions.
  • They have an aversion to holding clients’ funds or offering advisory services.
  • Lawyers provide a wide range of services that can be used for layering and integration stages of money laundering.
  • This makes them highly exposed to ML/TF risk.

Sectors with Lower ML/TF Risk

The following sector is identified as having a lower risk of money laundering and terrorist financing:

Non-Profit Organizations (NPOs)

  • The sector has not had an appropriate supervisory framework developed to date.
  • It is restricted to carrying out business within The Bahamas with limited access to the international financial system.

Action Being Considered

The following key tracks are being addressed to improve the AML/CFT regime in The Bahamas:

Developing and Implementing Risk-Based Supervisory Frameworks

  • Regulatory agencies will develop and implement risk-based supervisory frameworks.

Enhancing the AML/CFT Regime

  • Review of the International Obligations (Economic and Ancillary Measures) Act to ensure it is sufficient vis-à-vis the Financial Action Task Force (FATF) Recommendations.

Enhancing Domestic Co-operation and Co-ordination

  • Strengthening domestic co-operation and co-ordination among regulatory agencies.

Strengthening Sanctions, Intelligence, and Enforcement

  • Improving sanctions, intelligence, and enforcement mechanisms to combat money laundering and terrorist financing.

Ensuring Efficient and Effective International Cooperation

  • Establishing an efficient and effective system for international cooperation.

Raising AML/CFT Awareness Among Stakeholders and the General Public

  • Educating all stakeholders and the general public about the importance of combating money laundering and terrorist financing.

The Bahamas has enacted various legislation to combat money laundering and terrorist financing, including:

  • Anti-Terrorism Act, 2004
  • Banks and Trust Companies Regulation Act, 2000
  • Prevention of Bribery Act, 2010
  • Central Bank of The Bahamas Act, 2000
  • Criminal Justice (International Cooperation) Act, 2000
  • Financial Intelligence Unit Act, 2000

Regulators have issued legally enforceable AML/CFT guidance for the adherence by financial services and designated non-financial business sectors.