Frequently Asked Questions

What are the Key Elements of The Bahamas’ AML/CFT Regime?

Category: AML/CFT

Answer:

The Bahamas Government has gone on record with its intention of attaining and maintaining "the very highest levels of conduct as a clean jurisdiction, complying with the highest standards to prevent the abuse of its financial system by money launderers and criminal elements". It has committed to satisfying recommendations coming out of the Caribbean Financial Action Task Force (CFATF), and Financial Action Task Force (FATF) in relation to simplifying and making more efficient The Bahamas' cooperation with foreign jurisdictions in legal proceedings.

Some of the key elements from the rounds of The Bahamas’ regulatory reform are as follows:

  • In 2000: The Bahamas eliminated bearer shares;
  • Since 2001: There is the filing of a register of directors and officers;
  • The law mandates that financial institutions have Known Your Client/Client Due Diligence as well as Counter Financing of terrorism processes. Further, regulators have issued guidelines to industry outlining best practices for verifying customer identity and for developing anti-money laundering procedures and measures to prevent terrorist financing.
  • There is a regulatory framework for the reporting and investigation of suspicious transactions;
  • There are Independent inspections and regulatory examinations of financial service providers including corporate service providers for compliance with AML/CFT laws;
  • The 2000 legislative restructuring included the Evidence (Proceedings in Other Jurisdictions) Act and the Criminal Justice (International Cooperation) Act. The former regulates cooperation by Bahamian courts in civil matters while the latter regulates such cooperation in criminal matters. The 2000 legislative restructuring included the Evidence (Proceedings in Other Jurisdictions) Act and the Criminal Justice (International Cooperation) Act. The former regulates cooperation by Bahamian courts in civil matters while the latter regulates such cooperation in criminal matters.