The Tribune

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

THE FIRST phase of an intensive review of the country’s financial systems and regulatory capacity to protect against money laundering and terrorism began yesterday.

Attorney General Allyson Maynard-Gibson said that the assessments facilitated by the World Bank will give the country an opportunity to rebrand its financial services sector and boost its ratings for the ease of doing business.

Participants in the two-day workshop from both public and private regulatory agencies will review all financial services legislation, including the new Gaming Bill.

Cash-intensive businesses, such as web shops, will come under heavy scrutiny as officials work to assess risks for money laundering from the global perspective.

The first of its kind for the country, the exercise will put a spotlight on risks and system weaknesses in a bid to define and implement an effective regulatory system and related framework.

“The World Bank assessment is a country tool to enable the fourth round of assessment to take place,” Mrs Maynard-Gibson said, “and the World Bank is assisting us to make our own risk assessment which identifies risks and weakness and how we will combat them. In 2015, we will have the fourth round of assessments and this is critically important to our financial wellbeing and our wellbeing in the country.

“It focuses not only on what laws we have in place, but very importantly what we do to implement effectively our laws.”

The two-day workshop follows an assessment by the Organisation of American States’ (OAS) Anti-Corruption Mechanism last month.

OAS officials conducted a three-day on-site assessment of the Bahamas on the implementation of a convention against corruption in the lead-up to the enactment of new gaming regulations.

Mrs Maynard-Gibson explained that while the regulation of web shops were not motivated by the upcoming assessment, the initiatives were linked.

“Whether or not we had the assessment, it was important to move forward with the legislation regarding the web shops. There is a connection,” she said.

Stephen Thompson, national anti-money laundering co-ordinator, said: “Real rather than perceived risks will be looked at; we’re seeking to determine those areas which are vulnerable to money laundering and terrorism financing in the Bahamas. We are also seeking to determine which areas which are currently regulated that perhaps may need greater focus; conversely, there are some areas that may now be regulated which on a risk sensitive basis we may be able to take those scarce resources and divert them to other areas.

“We’re going to look at money laundering typologies, these will be the ways in which persons have laundered money in the past. Those will be the areas obviously that we will focus on, in addition to that, we will look at any other area where there are vulnerabilities or any area susceptible to criminal activity.

“Obviously, cash intensive businesses would be very critical for us to look at,” he said, “any area that we note from a global perspective poses a risk for money laundering.