The Bahamas’ Investment Funds Act is now close to becoming a reality nearly three years after the country’s initial legislative response to its placement on the FATF (Financial Action Task Force) blacklist, though the legislation must clear one final hurdle.
Before the new law can take effect, the Act must obtain the approval of the Securities Commission, and rules concerning the SMART (Specific Mandate Alternate Regulatory Test) need to be finalised.
“We regard these matters as extremely urgent and we would hope to be able to complete our review and submit a final report to the government on the regulations and templates within the next two weeks,” said attorney Brian Moree, chairman of the Financial Services Consultative Forum, in a Nassau Gaurdian report.
The urgency of the situation is a view also shared by the Minister of Financial Services and Investments, Allyson Maynard Gibson. “The government would be very, very happy if the financial-services sector is able to put those regulations forward as early as (two weeks).”
The new legislation was a direct response to the OECD/FATF’s labelling of the jurisdiction as ‘uncooperative’ in the fight against money laundering. “Its primary role and benefit is it would provide a very modern and competitive statutory framework for the mutual-funds business, which is very big business within the financial-services sector,” explained Mr Moree.
However, Mr Moree conceded that the Securities Commission must be given a certain amount of time to come to terms with its expanded role in terms of increasing its workforce and retraining existing employees. “It is extremely important that the regulator is put in a position to properly regulate the industry, mutual-funds business specifically, and be given adequate funds to do that,” observed Moree in the Guardian report.
By Amanda Banks, Tax-News.com
