#Nassau, August 29, 2019 – Bahamas – Deputy Prime Minister and Minister of Finance the Hon. K. Peter Turnquest said the government has enacted a significant number of new pieces of legislation, or amended existing legislation, to ensure The Bahamas remains globally competitive in the financial sector.
“In some instances, these have totally transformed the way business is
transacted in this country,” DPM Turnquest noted during the Financial
Intelligence Unit’s (FIU) Public-Public Partners Forum held in the training
room of Poinciana House, Wednesday, August 28, 2019.
“As you are no doubt aware, the Financial Action Task Force (FATF) has
been one of the major drivers of change towards the adoption of more stringent
rules and compliance standards.”
He further explained, “In 1989 they became one of the primary
international bodies exercising oversight of the global financial sector, with
a primary objective to lead anti‑money laundering efforts, along with
countering the financing of terrorism, and countering the financing of the
proliferation of weapons of mass destruction.”
The DPM said The Bahamas’ financial sector is not only being assessed by
the FATF, but the FATF’s standards are being used by other agencies, such as
the European Union, the International Monetary Fund (IMF), the World Bank, the
United Nations, and others, who all assess the country’s performance as a key
player in the global financial system.
He said the FATF Mutual Evaluation of The Bahamas was conducted in late
November and early December 2015 and the report itself, the Mutual Evaluation
Report (M.E.R.), was released in July 2017.
DPM Turnquest explained that the M.E.R. involved a comprehensive review
of financial industry. “We were assessed based on our compliance with the 40
FATF recommendations, and our effectiveness with implementing these
recommendations as mandated by the six immediate outcomes.”
He added, “Since the release of the M.E.R, and our being placed in the
ICRG process, The Bahamas has successfully had our compliance rating upgraded
for a number of the recommendations and immediate outcomes. But
there is still more work to be done.
“We are optimistic that in the short order we will meet the requirements
of those few remaining areas where we did not achieve the requisite standards.
Our aim is to, at the earliest opportunity, be released from the ICRG process.”
The DPM noted that The Bahamas has made significant strides in improving
its legislation and systems, particularly in the last three years, but it
appears that as soon as the country gets closer to meeting the standards, the
requirements change.
He said the perception is that the goal posts are often moving.
“However, The Bahamas is staying engaged at a high level with our international
partners to keep pace with the changes and to shape the future direction that
we collectively move towards.”
DPM Turnquest explained that overall, the Bahamas Government supports
the adherence to global standards that are applicable to all financial sectors
around the world.
He said the entire global system is better protected and safeguarded
when everyone maintains a firm commitment to high Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)
standards.
“Our local stakeholders can feel confident that the Government will
remain relentless in our commitment to protect the interests of the local
financial services sector and the broader Bahamian economy.
The DPM added, “A critical part of our work, therefore, is to meet and
exceed the expectations of FATF and other international organisations, and
become a pace‑setter in how the industry is monitored, regulated and policed.”
He explained to the participants that their forum is aimed at bringing
greater awareness of the need for mutual cooperation between the industry
regulators, law enforcement agencies and other government agencies which play a
critical role in the overall AML/CFT fight.
“It is imperative that we all, as heads of the various agencies, work
collaboratively to achieve the country’s objectives.”
DPM Turnquest stated, “We must remember that while each of us has a statutory role to play, and the information that we gather is to achieve that objective, this information can also protect the integrity of the financial system and ultimately the people of The Bahamas.”
By Llonella Gilbert
Release: BIS
Photo Caption: Deputy Prime Minister and Minister of Finance the Hon. K. Peter Turnquest brought remarks at the Financial Intelligence Unit’s (FIU) Public-Public Partners Forum held in the training room of Poinciana House, Wednesday, August 28, 2019.
(BIS Photos/Derek Smith)