Financial Crime Prevention Measures in Bahamas Get Thumbs Up from Global Watchdog
The Central Bank of The Bahamas has earned high praise for its efforts in preventing and detecting financial crimes, with the country achieving technical compliance ratings of “Compliant and Largely Compliant” in all 40 recommendations made by the Financial Action Task Force (FATF). This achievement makes it only the second jurisdiction in the Caribbean, South and North American regions to attain such standings.
The Central Bank’s Role in Preventing Financial Crimes
According to sources, the Central Bank plays a crucial role in preventing financial crimes by ensuring that supervised financial institutions have effective systems and controls in place to detect and deter:
- Money laundering
- Terrorist financing
- Proliferation financing activities
To achieve this, the bank develops and enforces laws and regulations that supervise financial institutions must adhere to, assesses risks associated with these crimes, conducts on-site examinations, and provides guidance and training to supervised financial institutions.
Risk-Based Supervisory Regime
The Central Bank’s risk-based supervisory regime is designed to oversee:
- Banks
- Trust companies
- Payment service providers
- Cooperative credit unions
- Registered representatives
The bank’s efforts are aimed at preventing and detecting money laundering, terrorist financing, and proliferation financing through both financial and non-financial measures.
Conducting Surveillance and Examinations
In its capacity as regulator for supervised financial institutions, the Central Bank conducts:
- Off-site surveillance to ensure compliance with anti-money laundering, countering the financing of terrorism, and proliferation financing laws and regulations
- On-site examinations to review policies, procedures, and internal control systems of these institutions
Guidance and Training
The bank also provides guidance and training to supervised financial institutions, helping them understand their obligations and assisting in implementing effective anti-money laundering, countering the financing of terrorism, and proliferation financing measures.
Achievement and Commitment to Fighting Financial Crime
This achievement is a testament to the Central Bank’s commitment to fighting financial crime and its effectiveness in ensuring that The Bahamas remains a stable and reputable financial hub.