Financial Crime World

Strengthening Anti-Money Laundering (AML) and Combating Terrorism Financing (CFT) Regime in The Bahamas

Introduction

The Bahamas has a long-standing commitment to fighting financial crime, with legislation enacted to combat money laundering (ML) and terrorism financing (TF). However, despite these efforts, there are areas for improvement in the country’s AML/CFT regime. This report highlights key points that need attention to strengthen the current framework.

Key Areas for Improvement

Risk-Based Supervision

  • The regulatory frameworks of certain agencies (SCB, CC, GB, and RGD) are not risk-sensitive.
    • Action Required: Develop and implement a risk-based supervision approach to ensure that all agencies effectively monitor and mitigate ML/CFT risks.

Enhancing the AML/CFT Regime

  • The International Obligations Economic Anti-Money Laundering Act (IOEAMA) should be reviewed to ensure it meets FATF Recommendations.
    • Action Required: Update IOEAMA provisions to align with international standards and best practices.

Domestic Cooperation and Coordination

  • Enhance domestic co-operation and coordination among agencies.
    • Action Required: Develop and implement a framework for effective inter-agency communication, information sharing, and collaboration.

Strengthening Sanctions, Intelligence, and Enforcement

  • Strengthen sanctions against ML/CFT offenders.
  • Gather intelligence to identify and disrupt ML/CFT activities.
  • Enhance law enforcement capabilities to investigate and prosecute ML/CFT cases.
    • Action Required: Develop and implement strategies to improve the effectiveness of sanctions, intelligence gathering, and law enforcement efforts.

International Cooperation

  • Ensure an efficient and effective system for international cooperation on AML/CFT matters.
    • Action Required: Establish and maintain strong relationships with international partners to share information, best practices, and coordinate efforts against ML/CFT.

Raising Awareness

  • Raise awareness about AML/CFT among all stakeholders and the general public.
    • Action Required: Develop and implement education programs to raise awareness about the risks of ML/CFT and the importance of reporting suspicious activities.

By addressing these key areas for improvement, The Bahamas can strengthen its AML/CFT regime and effectively combat financial crime.