The Bahamas’ progress in strengthening measures to tackle money laundering and terrorist financing

Bridgetown, Barbados, 22 November 2018 – As a result of The Bahamas’ progress in strengthening its framework to tackle money laundering and terrorist financing since their 2017 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 13 of the 40 Recommendations.

The Bahamas has been in an enhanced follow-up process, following the adoption of the CFATF mutual evaluation, which assessed the effectiveness of The Bahamas’ anti-money laundering and counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the FATF Procedures for mutual evaluations, The Bahamas has reported back to the CFATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses The Bahamas’ progress in addressing the technical compliance deficiencies identified in the mutual evaluation report.   

To reflect this progress, the CFATF has re-rated The Bahamas on the following Recommendations:

1- Assessing risks and applying a risk-based approach from partially compliant to largely compliant

2– National cooperation and coordination from partially compliant to compliant

6 - Targeted financial sanctions related to terrorism and terrorist financing from non-compliant to partially compliant

10 – Customer due diligence from partially compliant to compliant

12 – Politically exposed persons from partially compliant to compliant

15 – New technologies from partially compliant to largely compliant

17 – Reliance on third parties from partially compliant to compliant

18 - Internal controls and foreign branches and subsidiaries from partially compliant to largely compliant

23 – DNFBPs: other measures – from partially compliant to largely compliant

25 – Transparency and beneficial ownership of legal arrangements - from partially compliant to largely compliant

30 – Responsibilities of law enforcement and investigative authorities from partially compliant to compliant

32 - Cash couriers   from partially compliant to largely compliant

35 - Sanctions from partially compliant to largely compliant

The report also looks at whether The Bahamas’ measures meet the requirements of FATF Recommendations that have changed since their 2017 mutual evaluation, taking into account any new measures since the mutual evaluation.

The CFATF agreed to maintain the largely compliant for Recommendation 5, the compliant rating for Recommendation 21 and partially compliant rating for Recommendations 7, 8, 19, 22, 26, 27, 28 and 33.  

See link for complete report -> The Bahamas 1st Follow up Report

PRE-ASSESSMENT TRAINING FOR CFATF DUTCH-SPEAKING MEMBER COUNTRIES

 

The Kingdom of the Netherlands in support of the CFATF, funded Pre-Assessment Training for the Dutch-speaking CFATF Members. The training was hosted by Curaçao during the period 5 – 7 December 2018 at the Renaissance Curaçao Resort and Casino, Curaçao.

Over one hundred and twenty personnel from the public sectors of Curaçao, St. Maarten, Suriname and Aruba participated in the training over two days whilst fifty private sector personnel from the financial and DNFBP sectors across the jurisdictions attended a half-day session.

The sessions for both the public and private sectors were opened with remarks by the Honourable Minister of Finance of Curaçao, the Honourable Kenneth Gijsbertha and were facilitated by staff of the CFATF Secretariat; Executive Director Dawne Spicer and Deputy Executive Director Joanne Daniel. Participants were guided through the mutual evaluation process, key principles and concepts of the fourth round of mutual evaluations and preparatory considerations relating to their upcoming fourth round mutual evaluations.

The sessions were very interactive and well received by all participants who shared on progress of ongoing efforts to bolster their AML/CFT Frameworks and prepare for their fourth-round mutual evaluation.

CFATF Secretariat
Wednesday 12 December 2018

CFATF Report of Regional Money Laundering and Terrorist Financing Cases

In November 2018 the CFATF completed a compilation of cases based on regional money laundering and terrorist financing investigations and prosecutions. The report categorises these cases, some of which show money flows across corridors, using myriad legitimate facilities. 

See here for access to the report -> CFATF Typology Report on Money Laundering and Terrorist Financing

OUTCOMES OF THE CFATF NOVEMBER 2018 PLENARY MEETING

 

Bridgetown, Barbados, November 2018 - CFATF Chairman, the Honourable Basil Williams SC, MP, Attorney General and Minister of Legal Affairs of Guyana chaired the CFATF XLVIII Plenary in Bridgetown, Barbados on 22-23 November 2018. The Working Group meetings took place from 19-21 November 2018.

The main issues dealt with by this Plenary were:

  1. Mutual Evaluations and Follow-Up Process and ICRG matters
  • Discussion of the mutual evaluation report (MER) of the Cayman Islands: The CFATF Plenary discussed the MER of the Cayman Islands which set out the level of effectiveness of the country’s AML/CFT system and their level of compliance with the FATF Recommendations. The report was prepared on the basis of the FATF Methodology for assessments which requires countries to consider the effectiveness with which AML/CFT measures are implemented, as well as technical compliance for each of the FATF Recommendations. Plenary approved the Mutual Evaluation report following discussions at both the CFATF Working Group on FATF Issues (WGFI) and at Plenary. The MER is now being prepared for the post-Plenary Quality and Consistency process and will be published once the process is concluded.
  • Discussion of the 1st enhanced follow-up report for the mutual evaluation of The Bahamas, in which the country achieved technical compliance re-ratings: The CFATF Plenary discussed the progress that The Bahamas has made since the adoption of its mutual evaluation report (MER) in 2017. The Bahamas has made progress since the publication of its MER. The CFATF Plenary agreed to re-rate the Bahamas’ technical compliance with a number of FATF Recommendations to reflect the country’s progress since its MER was adopted and its current level of technical compliance. After the completion of a quality and consistency review, the CFATF will publish the follow-up report which summarises the analysis of how deficiencies identified during the mutual evaluation were addressed and the final conclusion on the re-ratings.
  • Updates about the ongoing the mutual evaluation status of Haiti, the Turks and Caicos Islands, Bermuda, Venezuela and St. Lucia were provided.
  • Adoption of the CFATF ICRG Procedures for the Fourth Round of AML/CFT Mutual Evaluations, which will bolster and provide greater clarity to the existing Follow-Up Process.
  1. CFATF CFT Operation Plan
  • Trinidad and Tobago and Belize made presentations of their CFT work in line with the approved CFT Operation Plan adopted at the CFATF XLVII May 2018 Plenary.
  1. Updates of the FATF June and October 2018 Plenaries
  • Outcomes of the FATF June and October 2018 Plenaries were presented at the following CFATF Working Group Meetings: the International Cooperation Review Group (CFATF ICRG), the Working Group on FATF Issues (WGFI), which covers the work of the Policy Development Group (PDG), Global Network Coordination Group (GNCG) and Evaluations and Compliance Group (ECG), the CFATF Risk, Trends and Methods Working Group (CRTMG) and the Heads of FIU Forum meetings.
  • Some of the topics discussed were the amendments to Rec. 15 (New Technologies) which now includes a new paragraph in order to deal with Virtual Assets (the Glossary was also amended in order to include the definition of Virtual Assets and Virtual Assets Service Providers) and the future work that the FATF will undertake (which will include an Interpretative Note and amendments to the Methodology) and the changes to the Methodology regarding Rec. 2 and Immediate Outcomes 1, 3 and 4.
  1. CFATF Governance
  • The Honourable Dale Marshall, QC, MP, Attorney General of Barbados will hold the CFATF Chairmanship for the period November 2018 – November 2019, while Lt. Col. Edward Croft, Director of the Organisation of Drug and Money Laundering Control Policy of Antigua and Barbuda assumed the position of Deputy Chair of the CFATF. Honourable Basil Williams, QC, MP now holds the position of Immediate Past Chair, which ensures the tripartite governance of the CFATF.

CFATF Secretariat
December 7th, 2018

EU Assists CFATF in Combating Money Laundering in Region

 

  
Ms Daniela Tramacere, EU Ambassador to Barbados, Ms Dawne Spicer, Executive Director, CFATF and Mr. Andrew Frection, Project Manager, CFATF meet at the CFATF XLVIII Plenary in Barbados ahead of upcoming action under the 11th EDF.

 

The European Union and the Caribbean Financial Action Task Force (CFATF) have signed an agreement to enhance the region's capacity to comply with standards relating to anti-money laundering and combating the financing of terrorism.

This will be undertaken via the Implementation of a Mutual Evaluation Programme which will evaluate compliance in the financial and related sectors in CFATF member countries, to ensure that international standards are adhered to.

One of the main specific actions will be assisting countries in improving their levels of compliance with the international Financial Action Task Force's 40 recommendations, which provide a complete set of counter measures against money laundering covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation. These recommendations have been recognised, endorsed or adopted by many international bodies.

Barbados recently hosted the CFATF XLVIII Plenary and Working Group meetings from 19-23 November in preparation for Barbados taking over the chairmanship of CFATF from Guyana. During Barbados' chairmanship the results and reviews of the Mutual Evaluation reports will continue to be reviewed and discussed.

The project is also expected to undertake a series of workshops and seminars to build technical capacity, carry out public education and awareness activities, and develop an Information Communication Technology platform called Vision 22 which will allow CFATF members to access resource databases.