Guidelines on the Prevention and Detection of Money Laundering for Licensees

Published: Tuesday May 3rd, 2005

The Central Bank is pleased to announce the release of Guidelines on the Prevention and Detection of Money Laundering for Licensees for industry consultation. The amendments made in December 2003 to the Financial Transactions Reporting Act, 2000 and the Financial Transactions Reporting Regulations, 2000, had the effect of facilitating a risk-based approach to customer due diligence on the part of financial sector institutions. Consequently, the anti-money laundering guidelines issued to licensees of the Central Bank by the FIU required revision in line with the above statutory amendments.

These draft Guidelines seek to address customer due diligence issues arising in respect of, inter alia, foundations, investment funds, segregated accounts companies, financial and corporate service providers and treatment of accounts in existence prior to 29th December, 2000. The draft Guidelines do not address suspicious transactions reporting which is to be addressed by the Financial Intelligence Unit.

The objective of these Guidelines is to provide assistance to licensees in determining appropriate measures for verifying customer identity. The Guidelines set out those procedures and practices which the Central Bank considers to be "best practice" for verifying customer identity.

Questions or comments about the Guidelines should be submitted by 6th June, 2005 to:

The Legal Unit Miss Rochelle A. Deleveaux Legal Counsel Central Bank of The Bahamas Frederick Street P.O. Box N-4868 Nassau, Bahamas

Tel: (242) 302-2611 Fax: (242) 323-7795 E-mail: [email protected]

The Guidelines have been posted on the Central Bank's Website for your viewing at https://www.centralbankbahamas.com/publications.lasso Licensees are reminded to refer to the Website regularly for new postings.

Dated: 3rd May, 2005