The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

UNDER the Non-Profit Organisations Amendment Bill, non-profits that fail to renew registration face having financial accounts frozen and being investigated by authorities, according to Financial Services, Trade and Industry and Immigration Minister Elsworth Johnson.

The bill, passed in the House of Assembly yesterday, also makes provision for churches to keep proper financial records and produce them upon request whereas the previously shelved version of the legislation made declaring this information automatic.

Finance Minister Peter Turnquest described this as a “lighter touch”, adding it was never the government’s intention to become involved in the affairs of non-profit organisations and portray the characteristics of a “fascist” government.

He explained there was an urgent need to pass this bill and four others to ensure the Bahamas aligned with the requirements of the Financial Action Task Force (FATF) and Organisation for Economic Co-operation and Development (OECD).

Further, the bill makes it mandatory that organisations must report and disclose the receipt of donations and disbursements of $50,000 or more.

Parliamentarians debated this bill and other financial services bills as a compendium in a single sitting yesterday before breaking for summer recess. The House of Assembly returns on October 2.

It comes months after the Minnis administration abandoned its original non-profit bill after churches criticised it for being too intrusive.

Mr Turnquest told Parliament that there had been wide consultation on the updated bill.

He said there had been some dissenting voices, but ultimately the government had to make a decision. However he noted that there were many non-profits around the world that had been used for nefarious activities.

For his part, Mr Johnson said yesterday: “Clause 22 of the bill seeks to provide that the registrar give written notice to require the production of a written notice only where he or she recently requires the records specified in the notice to the extent to which a non-profit organisation is engaged in activities that are identified risks.

“And this is very important, Mr Speaker. It’s not an attempt to go on a witch hunt.

“The registrar must be motivated by reasonable suspicion in order to ask somebody to bring their records forward.

“Clause 23 of the bill seeks to provide that the registrar should hold financial records in confidence (and) furthermore the clause seeks to provide that if the registrar has reasonable cause to suspect a non-profit organisation is engaged in any activity, which qualifies as an identified risk, the registrar shall after consultation with the minister provide the financial records and all other relevant information to the commissioner of police or the Financial Intelligence Unit for investigation.”

He continued: “Clause 24 of the bill seeks to provide that non-profit organisations must report to the registrar any donations or disbursements of $50,000 or more made by one person in a year, whether the sum is paid in lump sum or as an aggregated sum.

“Clause 24 of the bill provides for financial institutions and designated non-financial business and professions to ensure that non-profit organisations are registered in order to open or maintain bank account or account ledgers.

“Clause 26 provides that where non-profit organisations fail to renew their registration within six months of its expiration, the institution shall freeze all of the non-profit organsation’s accounts.

“And, Mr Speaker, we have had extensive consultation with the industry and civil society and I note that it’s going to be ongoing training in this regard to highlight the significance and why the regulations are extremely necessary.”

The amendment also prescribes provisions for misleading the registrar by providing erroneous information.

Exuma MP Chester Cooper argued that the consultations were not meaningful, adding the Act did not clearly understand how non-profits work.

The opposition MP further questioned how this legislation held priority over the government’s promise to deliver campaign finance reform laws. He criticised the Minnis administration over its handling of these organisations saying many of them “stood in the gap” for citizens where government failed to fulfil their needs.

The compendium of bills must now be passed in the Senate.