Financial Crime World

Here is the article formatted in markdown:

Preventing Money Laundering, Countering Terrorism Financing & Proliferation Financing

A Guide for Organizations in The Bahamas

The Central Bank of the Bahamas has issued guidelines for Supervised Financial Institutions (SFIs) to prevent money laundering, counter terrorism financing, and proliferation financing. This article highlights key points related to organizations moving, collecting, hiding or making available funds for their activities.

Similarities with Criminal Organizations

Organizations involved in terrorist financing often use similar methods as money launderers, including:

  • Moving funds through complex transactions
  • Collecting and hiding funds
  • Making funds available for illicit purposes

Reporting Requirements

Under Section 49 of the Anti-Terrorism Act (ATA), SFIs must report suspicious transactions to the Financial Intelligence Unit (FIU) when they know or have reasonable grounds to suspect that funds belong to an individual, entity, or legal entity involved in terrorism. This includes:

  • Reporting the existence of such funds to the FIU
  • Filing a suspicious transaction with the FIU if linked to terrorism, terrorist acts, or designated entities

Criminalization of Proliferation Financing

The ATA also criminalizes proliferation financing, which involves providing or making available funds for the manufacturing, development, production, distribution, or supply of nuclear, chemical, or biological weapons for use in terrorist acts.

United Nations Security Council Resolutions (UNSCRs)

Part IV of the ATA contains provisions for implementing UNSCRs in The Bahamas. If a UNSCR imposes financial sanctions on designated individuals and entities:

  • SFIs must freeze all funds held in the name of a designated entity
  • They must inform the Attorney-General and FIU about the frozen funds
  • Designated entities can commence proceedings to release the frozen funds

Obligations for Listed Entities

Under Section 45 of the ATA, if an individual or entity is declared a “listed entity” by the Commissioner of Police:

  • The Attorney-General may apply for an order freezing their property
  • Subject to some factors, the order may prohibit them from possessing or controlling cash exceeding a certain amount

These are just some of the key points related to organizations involved in terrorist financing and money laundering. If you have any specific questions or would like me to elaborate on any of these points, feel free to ask!