Consolidated assessment ratings – The Bahamas‘ progress in strengthening measures to tackle money laundering and terrorist financing

On 9 January 2023, the Financial Action Task Force (FATF) has published an update to its Consolidated assessment ratings together with a Follow-up Report on The Bahamas, addressing the significant progress made in relation to Non-profit organisations and New technologies.
CONSOLIDATED ASSESSMENT RATINGS
The updated Consolidated assessment ratings provide an up-to-date overview of all assessed countries concerning the effectiveness and technical compliance with the FATF Recommendations, using the FATF Methodology together with the FATF 4th Round Procedures. These ratings should be read in conjunction with the detailed Mutual Evaluations. All these documents are available on the FATF website.
This update of FATF’s Consolidated assessment ratings incorporates the findings of the Follow-up Reports on The Bahamas (see national details below). Notable changes on both effectiveness and technical compliance towards Anti-Money Laundering/Combating Financial Terrorism (AML/CFT) are the following:
The Bahamas
R.8 (Non-profit organisations) now rated at C (Compliant)
R.15 (New technologies) nor rated at C (Compliant)
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THE BAHAMAS 5TH ENHANCED FOLLOW-UP REPORT & TECHNICAL COMPLIANCE RE-RATING
The Bahamas has recently completed a risk assessment and has a full understanding of the risks and threats to its Non-profit organisation (NPOs) sector. The Bahamas has developed a Best Practices Manual, in collaboration with the NPOs, to mitigate risks, encouraged NPOs to conduct transactions via regulated financial channels and notifies NPOs that contravening this practice may result in sanctions against the NPO including deregistration and forfeiture of assets. Overall, The Bahamas has addressed the deficiencies previously identified, and, therefore is now rated as Compliant for recommendation 8.
Furthermore, The Bahamas has concluded its risk assessment of the digital asset/digital asset service providers (DA/DASP) sector and assigned a low-risk rating. The legislative framework includes provisions which mandate financial institutions, inclusive of DASPs to undertake risk assessments of new products, practices and technologies and take appropriate measures to manage and mitigate risks identified. DASPs have the same full set of AML/CFT obligations as financial institutions, and there is a penalty framework for those who fail to comply. The deficiencies identified in Recommendations 37- 40 have been addressed and The Bahamas has shown evidence of the legal basis for the timely sharing of information with their foreign counterparts. The Bahamas is therefore re-rated to Compliant for recommendation 15.
All in all, The Bahamas has made significant progress in addressing the technical compliance deficiencies identified in R. 15 and R. 8, and no deficiencies remain. The Bahamas has been re-rated Compliant on R. 8 and R. 15. The Bahamas has 40 Recommendations rated C or LC. The Bahamas will remain in enhanced follow-up. The Bahamas’ next follow-up report is due in November 2023.