The true impact of the decision by the Financial Action Task Force (FATF) to discontinue its monitoring of The Bahamas will be felt over the long-term, according to a leading commercial law and financial services attorney.
In an interview with the Bahama Journal, John Delaney said one of the principal benefits of the decision would be to remove any stigma attached to The Bahamas in the international financial services community as a result of it being identified as a non-cooperative country or territory several years ago.
In June 2000, the FATF branded The Bahamas and 14 other offshore financial centres with that designation, placing the countries on a so-called ‘blacklist’.
After more than five years of monitoring The Bahamas, the FATF announced last month that it would remove The Bahamas from the list of countries which it would continue to monitor.
“Once The Bahamas had been removed from the blacklist following the introduction of (anti-money laundering) legislation in 2000 that already was a positive thing in terms of The Bahamas being able to continue in financial services without the negative blot on its name,” said Mr. Delaney.
“That enabled the jurisdiction to be able to take on new business. But also existing business felt safe in remaining in the jurisdiction. All those things were achieved by the fact that we were removed from the blacklist. Now, the fact that we are no longer being monitored just fortifies our position in terms of ensuring that our name remains good out there in the international marketplace.”
Expressing his approval of the package of legislation enacted by the former administration to secure The Bahamas’ removal from the list of non-cooperative countries, Mr. Delaney – who also serves as a Free National Movement (FNM) senator – said in spite of the criticism levied against the Ingraham-administration in connection with the laws, the legislation has served the country well.
“The fact of the de-listing of The Bahamas by the FATF back in 2001 effectively certified the legislation as being adequate to meet international standards,” Mr. Delaney said.
“The second factor which justified the legislation was that early in 2001 the U.S. Department of the Treasury certified The Bahamas as a qualified jurisdiction after having reviewed our know-your-customer rules as it relates to the banking sector.”
Speaking at a press conference to announce the FATF’s decision in October, Attorney General and Minister of Education Alfred Sears cautioned that in spite of the FATF’s decision The Bahamas would have to continue efforts to strengthen its financial services regulatory regime.
Mr. Delaney also noted the importance of the country not becoming complacent.
“Of course the anti-money laundering legislation of those who would wish to enact such laws continues to evolve so The Bahamas will have to be vigilant in ensuring that it is doing the right things to prevent our jurisdiction from being abused for money laundering,” he said.
“So it doesn’t mean that we can rest on our laurels. We would have to continue to ensure that we protect the good name of this jurisdiction.”
By: Darrin Culmer, The Bahama Journal
