The Bahamas Takes A Step Closer To Compliance With All 40 FATF Recommendations

• Published date: 08 April 2022
• Subject Matter: Finance and Banking, Government, Public Sector, Compliance, Financial Services, Terrorism, Homeland Security & Defence, Money Laundering
• Law Firm: Bahamas Financial Services Board
• Author: Bahamas Financial Services Board

April 7, 2022, Nassau Bahamas, Today, The Bahamas is compliant or largely compliant in 38 of the 40 FATF Recommendations. As part of its continuing modernization of the country's international regulatory obligations, the Bahamas Attorney General and Minister of Legal Affairs, Senator The Honourable Ryan Pinder, introduced amendments to underlying pieces of legislation to ensure compliance with FATF standards to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation, and other related threats to the integrity of the international financial system.

Attorney General Pinder noted during parliamentary debate on the amendments that all of the underlying pieces of legislation were passed to ensure compliance with the anti-money laundering and counter terrorist financing obligations of the Financial Action Task Force (FATF). The most recent changes were made to The Anti-Terrorism Act, 2018, The Proceeds Of Crime Act, 2018 and The Register of Beneficial Ownership Act 2018. These amendments considerably strengthen mechanisms for enforcement.

Amendments to The Anti-Terrorism Act, 2018

The Anti-Terrorism Act, 2018 was enacted to implement FATF requirements regarding The Bahamas' regime for combatting terrorist acts, terrorist financing and proliferation financing; interactions with the United Nations; international cooperation; and enforcement tools. The amendment being proposed empowers The Financial Intelligence Unit (FIU) to impose an administrative penalty on any Financial Institution who contravenes of the Act. This will require financial institutions to report any property used for commission of offences under the Act. In the original legislation no criminal nor administrative penalty was assigned to this obligation. The amendment will assist the FIU in enforcing compliance with the provisions.

Amendments To The Proceeds Of Crime Act, 2018

The Proceeds of Crime Act, 2018 (POCA) was one of three pieces of primary legislation passed to bolster The Bahamas anti money laundering regime. The amendments to the Act seek to clarify ambiguities, better align with international anti-money laundering standards. And provides that any document obtained under a production order, is admissible in court.

Register of Beneficial Ownership Amendments

The Bahamian Register of Beneficial Ownership Act 2018 (ROBO) was passed to, "provide for the Competent Authority to...