As it was revealed the Bahamas has spent some $35 million on implementing new financial compliance laws in recent times, the chairman of the Caribbean Financial Action Task Force (CFATF) and Bahamian Attorney General, Alfred Sears, has urged UN intervention to ensure that anti-money laundering principles are fairly applied to all countries.
Speaking to lawyers at a workshop for Central Bank Lawyers on the Prevention of Money Laundering and Terrorist Financing this week, Sears said that pressure was being brought to bear on the FATF to host a forum under the UN's umbrella to seek agreement on the issue.
Sears argued that there has not been a level playing field with respect to regulatory requirements in FATF and non-FATF member nations, a situation that he said was unfair and must be changed.
"Some members of the CFATF, under the direction of the NCCT Initiative (Non-Cooperative Countries and Territories), have abolished or immobilized bearer shares, nominee directors, and numbered bank accounts and have regulated the gatekeepers such as lawyers, accountants, stockbrokers and real estate agents," Sears observed.
"However, in FATF member countries, bearer shares, nominee directors, and numbered accounts are allowed and the bureaux de change and gatekeepers such as lawyers, accountants, stock brokers and real estate agents are not regulated."
The implementation of a myriad of new regulations had cost some jurisdictions a considerable amount, according to Sears, who revealed that the extensive new rules imposed on the Bahamas had cost $35 million. In addition, large sums are still being spent by the Compliance Commission, the Inspector of Financial and Corporate Service Providers and the Inspector of Banks and Trust Companies amongst other organisations, the Attorney General announced, adding that this is also the case in other regional jurisdictions, and is being made all the more difficult by current economic conditions.
"The economic downturn across the region, the decimation of the offshore banking sector in some jurisdictions is causing governments' revenue to dwindle, and therefore the ability of regional governments to support the new anti-money laundering regime and combat the financing of terrorism regimes may be placed in jeopardy since public sector and private sector officials can be easily suborned by the blandishments of the wealth, power and influence of the criminal gangs. This would make the work of the CFATF more difficult," Sears warned.
Therefore, some measure of outside assistance is required to help the Caribbean region in this regard, the CFATF chairman comcluded. As a consequence, the organisation is lobbying the IMF, the World Bank, the Caribbean Development Bank, the Inter-American Development Bank, Cariforum and the European Union for help with technical assistance and training.
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By Amanda Banks, Tax-News.com
