Attorney General and Minister of Education Alfred Sears revealed on Thursday that The Bahamas has lost $35 million in the past two years.
The staggering loss results from the country’s moves to comply with anti-money laundering standards imposed by international financial regulatory bodies such as the Organization for Economic Co-operation and Development (OECD), the Financial Action Task Force (FATF) and the Financial Stability Forum (FSF).
Mr. Sears remarked, however, that although there has been a significant decline in the number of International Business Companies (IBCs) being incorporated in The Bahamas, there has also been notable growth in the area of mutual funds, contributing to a turnaround in the country’s economic progress.
Attorney General Sears now serves as the Chairman of the Caribbean Financial Action Task Force (CFATF).
He represents The Bahamas in that capacity by reason of his being Attorney General. The chairmanship would put him in a position to have the kind of influence he proposes.
Through The Bahamas’ chairmanship of CFATF, the opportunity arises to influence the wider world by participation in the councils of FATF, the World Bank, the International Monetary Fund (IMF).
“We will have an opportunity to participate in the evolving global standards in the fight against money laundering and to sensitize these multilateral organizations of the specific concerns of the countries in our region,” he said.
The chairmanship also allows for The Bahamas to make a meaningful contribution to the methodologies used to assess anti-money laundering programmes and to implement integrity systems in respect of regional economies.
Mr. Sears also hopes, that this new found position will allow The Bahamas to influence international financial regulatory bodies such as the Financial Action Task Force (FATF), to apply the criteria for conforming to international financial standards with the same vigor as was demanded of The Bahamas.
“The Bahamas has demonstrated its resolve in fighting money laundering. It has regulated the gatekeepers and these same gatekeepers are not fully regulated in Europe among FATF member states,” he said.
Other countries within the FATF, as well as outside of the FATF, he said, should exercise the resolve demonstrated by The Bahamas.
Mr. Sears also said that The Bahamas has reformed its laws regarding International Business Companies (IBCs) by removing the issuance of bearer shares.
Illustrating how other jurisdictions have failed to comply with international requirements, he gave the example of American states such as Delaware and Nevada where companies still issue bearer shares.
“What we are asking is that the new evolving standards of due diligence be applied uniformly throughout the world. We’re asking for a common playing field,” he said.
He reiterated that there should not be one standard applied to the Americas and the Caribbean and another standard applied in Africa , Asia or Europe .
“There should be a global standard applied across the board,” he reaffirmed.
The Caribbean Financial Action Task Force is the foremost anti-money laundering authority within the region of the Americas . Mr. Sears said he hopes to let the world know that The Bahamas as well as the region is serious about combating money laundering.
“Money laundering represents a threat to the viability, the competitiveness as well as the integrity of our financial services sector, which is the second largest sector of our economy,” he said.
The Executive Director of the CFATF, Calvin Wilson said that The Bahamas takes over the chair at a crucial time because it is considered a leader in the region in terms of its anti-money laundering infrastructure, given the changes that were made in recent times.
“There is a lot that The Bahamas can offer the rest of the region, indeed they have already begun to do so,” he said.
Mr. Wilson also said that The Bahamas had already given assistance to smaller countries that are engaged in the FATF process.
He pointed out that one of the responsibilities of the Chairman’s work programme is “to ensure that smaller countries benefit from the experiences and expertise of larger more developed states.”
By Julian Reid, The Bahama Journal
