FATF Mutual Evaluation Scorecard

The Bahamas

FATF Mutual Evaluation Scorecard

The Bahamas

The Bahamas 2017 FATF Mutual Evaluation Report

Key Findings:

At the time of the Mutual Evaluation Report (MER), The Bahamas was still completing the NRA and have not developed and documented national AML/CFT policies.

Despite a well-structured and resourced Financial Intelligence Unit (FIU), there is a gap with the law enforcement authority (LEA), where no ML convictions have been made in the previous four (4) years.

With The Bahamas being considered as an international financial centre, it assessed its TF risks as low. There was also limited suspicious transactions reports (STRs) being filed, considering the size of its financial sector and the inherent risks that go along with it.

While financial institutions (FIs) and designated non-financial businesses and professionals (DNFBPs) have good supervisory regimes and are well-aware of their AML/CFT obligations, shortfalls were evident in a significant portion of the domestic banking sector.

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The Bahamas 2022 FATF Follow-Up Report and Technical Compliance Updates

Key Findings:

The 2017 MER identified many opportunities for improvement, which prompted The Bahamas to significantly strengthen its AML/CFT framework, mainly driven by overhauling legislation and enhancing compliance reinforcement. This led to significant improvements in almost all areas of the FATF Standards, including AML/CFT policies and coordination, handling terrorist financing and financing of proliferation, preventive measures, transparency, and compliance oversight. These were validated in the earlier Follow-Up Reports (FURs) in 2017 and 2018.

Further improvements were made in 2021, with continuous reinforcement of key laws, including the Proceeds of Crime Act (POCA), Financial Transactions Reporting Act (FTRA), and Anti-Terrorism Act. Advancements reflected in targeted sanctions, customer due diligence (CDD), transparency of beneficial ownership, regulation and supervision of FIs and DNFBPs, and FIU reporting and statistics.

In the latest FUR in 2022, The Bahamas demonstrated improvements in the areas of regulatory oversight of new technologies, foreign branches and non-profit organizations, with the ratings getting re-rated and upgraded.

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