Attorney General Carl Bethel.
By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
ATTORNEY General Carl Bethel said the government has a strategy to oppose the European Union’s decision to classify the Bahamas as a "high risk" jurisdiction for financial crime.
He said the country is consulting with expert lawyers in Europe who are assisting with putting together a very focused strategy in response to this classification.
According to Mr Bethel in the Senate on Friday, the EU has explained why the Bahamas was regarded as high risk.
They said strategic deficiencies regarding legal and institutional anti-money laundering and countering terrorist financing framework are generally what led to their decision. However, according to Mr Bethel, the government resolved all of the EU’s listed grievances.
He spoke on the issue ahead of the Senate’s passing of amendments to the Commercial Entities Substance Requirement Act Friday. The changes were passed in the lower chamber Thursday.
He said these included: “Criminalisation of money laundering and terrorist financing: Done in the Proceeds of Crime Act (since 1996) and more recently in 2018; and the Anti-Terrorism Act, 2018.
“Customer due diligence and record keeping requirements: Done in the Financial Transactions Reporting Act, 2018, and its predecessor Law with the same name, since 2000.
“Reporting of Suspicious Transactions: Done since the FIU was established in 2000, and by virtue of the FTRA. The availability and exchange of beneficial ownership information. Done in MLAT requests, the Criminal Justice (International Cooperation) Act, and also at common law by way of Letters Rogatory. Additionally, we passed the Register of Beneficial Ownership Act, 2018.
“Powers and procedures of competent authorities: Done. All competent authorities have ALL the powers required by the international community, inclusive of the power of the spontaneous exchange of information for tax purposes.
“International Cooperation. Done since 2000. The existence of dissuasive, proportionate and effective sanctions. Done in the FTRA 2018.”
He continued: “So, if we have done all the things they complain about, why are we on their list? They cannot claim to be ignorant. I went to Brussels last week and met with their Director-General for Justice and gave them copies of our Laws. But, you know, they had already decided to put us on their list.
“Let me assure you, my fellow Bahamians, this EU listing is unwarranted, prejudiced and indefensible. The Government is pushing back, and we are seeking to do all we can to marshall international support against this botched, non-transparent, pre-judged, prejudicial and unjustifiable listing.
“Let me make it clear to the Bahamian people. With the announcement of this EU Commissioners’ list there are now a total of three global initiatives, which are targeting or which affect our financial services sector; all based in Europe. Of these three matters, only two could result in blacklisting for The Bahamas. The two are the Financial Action Task Force and the Base Erosion Profit Sharing. Failure to reach the standards set, called “global” standards, will result in Blacklisting. The EU Commissioners’ list is, as I said, a financial advisory.”
Regarding the amendments to the CESRA, Mr Bethel said the government was confident the Bahamas would not be blacklisted.
Comments
concerned799 5 years, 9 months ago
Since the Bahamas has accepted the apparent legitimacy of the alphabet organizations to put demands on it in the past, why should it be surprised when the EU places demands on it and then places itself in a position to judge if the demands are met or not? Was not the original mistake to have accept the legitimacy of external bodies eg the OECD/FATF to judge on the Bahamas and its internal affairs in the first place? If after everything done we are still blacklisted, then why not dial back all we have done to disadvantage financial services if it has all been for not in any event? (and at least regain part of our financial services industry)
eg. Why give up so much for nothing?
Schemer18 5 years, 9 months ago
He can't see they are not on his run, & soon as he turned his back they throw the documents in the garbage.
Well_mudda_take_sic 5 years, 9 months ago
LMAO
truetruebahamian 5 years, 9 months ago
It would be helpful if at the beginning of the piece that a full explanation of what these letters mean, then there would be a point of reference. As FIU, FTRA and MLAT etc have no meaning whatsoever. I usually ascribe my own meanings and they usually cannot be put into print.
akbar 5 years, 9 months ago
More groveling is not a strategy.
VDSheep 5 years, 9 months ago
Financial terrorism is what EU and USA does to small or weak states to control them. This is what they have done and continue to do in one way or another. However - as Sir. Lynden said: “If we do not fight to keep our independence – we do not deserve to have it!”
sheeprunner12 5 years, 9 months ago
A vicious downward spiral to ruin every developing country who shows a inkling of life ........ FATF, EU, IMF, OECD etc should be declared terrorist organizations by the UN ...... the developing countries have the majority of the UNGA votes ........ they need to unite and use their voting power against these 30 criminal OECD members.
SP 5 years, 8 months ago
Blah, blah, blah, blah. Too much talking before thinking going on. The only strategy the Bahamas needs is to demand the same modus operandi as the US and EU tax havens.
https://medium.com/@icoservices/usa-the…
https://www.consultancy.eu/news/1641/eu…
They can't say no to that, and if they do, too damn bad for them, and we should simply move on and do the next best thing in our own best interest!
TalRussell 5 years, 8 months ago
Yes, or no ma comrades, Minnis and KP by its regime's very Imperial mentality does wants brungs political influence into judiciary, yes, no?
joeblow 5 years, 8 months ago
The governments strategy was and is to bend over!
Giordano 5 years, 8 months ago
It was a good effort from our AG & appointed Senator but he just wanted to take a brake with a trip to Brussels on Bahamian 's tax payers expenses just to carry copies of sets of Bahamian laws? Where is the common sense,? Just a trip ?,they (The EU) will throw away,in the garbage, all those copies of sets of "Bahamian laws " as soon as the mention AG turns his back. We need a better,more serious reaction and demand heavy compensation for the damages caused to The Bahamas by the EU with their wrongful statements.
TheMadHatter 5 years, 8 months ago
Don't need no strategy. Do 'em like The Rock say, "slap the stupid off their face".
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