The Role of the Central Bank of The Bahamas on Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing

The Central Bank of The Bahamas (the Central Bank) supports the suite of Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing (AML/CFT/CFP) laws and regulations developed by The Bahamas and its various agencies of the Group of Financial Service Regulators through its risk-based supervisory regime.

In its capacity as regulator for Banks & Trust Companies, Payment Service Providers, Co-Operative Credit Unions and Registered Representatives the Central Bank provides oversight by:

• Developing and enforcing laws and regulations that supervised financial institutions must adhere to in order to prevent and detect money laundering, terrorist and proliferation financing (ML/TF/PF) through financial and non-financial measures.
• Assessing the risks associated with money laundering, terrorist and proliferation financing, both at a national and individual institution level.
• Conducting off-site surveillance and on-site examinations of supervised financial institutions to ensure compliance with AML/CFT/CFP laws and regulations. This includes reviewing their policies, procedures, and internal control systems.
• Providing guidance and training to supervised financial institutions, helping them understand their obligations and providing assistance in implementing effective AML/CFT/CFP measures.

The Central Bank plays a crucial role in preventing and detecting financial crimes by ensuring that supervised financial institutions have effective systems and controls in place to detect and deter ML/TF/PF activities.

In December 2022, The Bahamas attained technical compliance ratings of “Compliant and Largely Compliant” in 40 of the 40 FATF’s Recommendations. The country became only the second jurisdiction in the Caribbean, South and North American Regions to attain such standings.