Trade-based financial crime the main threat in Bahamas’ AML/CFT regime

Trade based financial crimes represent the biggest threats to the Bahamas’ anti-money laundering and counter financing of terrorism efforts according to a report released by the Central Bank of the Bahamas (CBB).

The bank’s National Risk Assessment (NRA) says that the Bahamas continues to face significant money laundering and smuggling threats.

Biggest risk

The report on national money laundering and terrorist financing risks reveals that the Bahamas faces a wide range of internal and external threats, including human, gun and drug smuggling and trafficking.

But the biggest risks according to CBB are associated with trade-based schemes, including tax fraud. The Bahamas faces threats from domestic schemes and financial crimes instigated or organised in other jurisdictions.

Port concerns

The report says that Freeport, a major international transit port, poses potentially high money laundering and terrorist financing risks via trade-based schemes.

More study is required of trade-based money laundering and terrorist financing risks according to the central bank’s risk assessment.

The bank issued the NRA in keeping with recommendations by the Financial Action Task Force.

A summary of the NRA can be found here.

Categories: Trade Based Financial crimes News

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