Bahamas Central Bank Issues Guidelines on Preventing Money Laundering, Terrorism Financing
New Guidelines Aim to Combat Financial Crimes in The Bahamas
The Central Bank of the Bahamas has released revised guidelines aimed at preventing money laundering, countering the financing of terrorism and proliferation financing. These new guidelines are designed to strengthen the country’s financial system by ensuring that financial institutions (SFIs) comply with international standards and regulations.
Reporting Requirements for SFIs
According to the guidelines, a financial institution is required to report the existence of funds linked to terrorist acts or financing of terrorism to the Financial Intelligence Unit (FIU). Additionally, if an SFI knows or has reasonable grounds to suspect that funds are related to or intended for terrorist activities, it must file a suspicious transaction with the FIU.
Criminalizing Proliferation Financing
The guidelines also criminalize the act of financing proliferation of weapons of mass destruction. Proliferation financing occurs when any person provides or makes available funds or financial services to individuals or entities with the intention or knowledge that such funds will be used in whole or in part for the manufacturing, development, production, distribution or supply of nuclear, chemical or biological weapons for use in terrorist acts.
Compliance with UN Security Council Resolutions
The guidelines require SFIs to follow procedures outlined in United Nations Security Council Resolutions (UNSCRs) and impose financial sanctions on designated individuals and entities engaged in or supporting activities related to terrorism, terrorist groups, and the proliferation of weapons of mass destruction.
Procedures for Designated Entities
In the event that an individual or entity is designated as a terrorist entity by the UN Security Council, SFIs must:
- Freeze all funds held in their name
- Inform the Attorney-General and FIU
- Notify the designated entity
The designated entity can commence proceedings in the Supreme Court to release frozen funds within 14 days of being informed.
Procedures for Freezing Property Linked to Listed Entities
The guidelines also outline procedures for freezing property linked to listed entities, which triggers a series of obligations, including:
- Restrictions on possession or control of cash
- Access restrictions to frozen funds
Effective Date and Compliance
The guidelines are effective immediately, and SFIs are required to implement the new procedures forthwith. The Central Bank urges all financial institutions to comply with these guidelines to ensure the integrity of our financial system.
“The revised guidelines demonstrate our commitment to preventing money laundering, countering terrorism financing and proliferation financing in The Bahamas,” said the Central Bank.