Preventing Money Laundering and Countering Terrorism: Guidelines for Supervised Financial Institutions

Overview

The Central Bank of The Bahamas has established guidelines to prevent money laundering, counter the financing of terrorism, and proliferation financing. These guidelines are outlined in the Anti-Terrorism Act (ATA) and aim to protect the financial system from illicit activities.

Key Requirements for Supervised Financial Institutions (SFIs)

• Suspicious Transaction Reporting: SFIs must report suspicious transactions related to terrorist activities or entities to the Financial Intelligence Unit (FIU).
• Financing of Proliferation: SFIs are required to report any funds or financial services provided to individuals or entities involved in the financing of weapons of mass destruction.
• Asset Freezing: SFIs must freeze assets belonging to designated entities by the United Nations Security Council and inform the Attorney-General and FIU.

Designated Entities and Listed Entities

• Designated Entities: SFIs are required to freeze assets belonging to designated entities by the United Nations Security Council. The designated entity can commence proceedings in the Supreme Court for an order releasing the frozen funds within 14 days.
• Listed Entities: The Attorney-General may apply to a judge for an order declaring that an individual or entity is a “listed entity” for the Act’s purposes, which triggers a series of obligations, including freezing property and restricting access to excess cash.

Disclosure Requirements

• SFIs are required to disclose to the FIU forthwith, the existence of any property in their possession or control that they believe may be related to terrorist activities or entities.