Financial Crime World

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Money Laundering in The Bahamas: What You Need to Know

Criminals often use money laundering as a means to conceal the true origin and ownership of their illegal activities’ proceeds. This process, if successful, allows them to maintain control over those funds and provide a legitimate cover for their income source.

The Fight Against Money Laundering

In recent years, there has been a growing recognition that combating money laundering is crucial in the fight against crime. Criminals need to be prevented from legitimizing their illegal activities’ proceeds by converting “dirty” money into “clean”. The ability to launder funds through financial institutions is vital for criminal operations, making it essential for nations like The Bahamas to take action.

Stages of Money Laundering

There is no single method of laundering money. Methods can range from purchasing luxury items to passing funds through a complex web of legitimate businesses and corporate vehicles. The process typically involves three stages:

  • Placement: the physical disposal of cash proceeds derived from illegal activities
  • Layering: separating illicit funds from their source by creating complex financial transactions designed to disguise the audit trail and provide anonymity
  • Integration: the final stage, where the laundered funds are placed back into the economy, making them appear as normal business income

The Global Fight Against Money Laundering

The Financial Action Task Force (FATF) is the main international body for addressing money laundering. Founded in 1989, the FATF develops and promotes policies to combat money laundering. The organization has put together 40 Recommendations that provide a framework for cooperation at the international level.

Regional Efforts

The Caribbean Financial Action Task Force (CFATF) was established as part of the efforts to set up regional bodies patterned after the FATF. The CFATF came into existence following three regional meetings, which produced twenty-one recommendations specific to the region.

Members of the CFATF

  • Anguilla
  • Antigua and Barbuda
  • Aruba
  • The Bahamas
  • Barbados
  • Belize
  • Bermuda
  • British Virgin Islands
  • Cayman islands
  • Costa Rica
  • Dominican Republic
  • Dominica
  • Grenada
  • Jamaica
  • Monserrat
  • Netherlands Antilles
  • Nicaragua
  • Panama
  • St. Kitts and Nevis
  • St. Lucia
  • St. Vincent and the Grenadines
  • Suriname
  • Trinidad and Tobago
  • Turks and Caicos Islands
  • Venezuela

Contact Information

For more information on money laundering in The Bahamas, contact:

Compliance Commission

  • Poinciana House
  • #34 East Bay Street
  • Nassau
  • New Providence
  • The Bahamas
  • Phone: (242) 604-4323, 604-4331, 604-4333
  • Email: compliance@bahamas.gov.bs
  • Opening Hours: Monday through Friday, 9:00am to 5:00pm