The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE Bahamas will suspend the automatic exchange of financial information with Russia on its citizens, according to Attorney General Ryan Pinder yesterday.

This latest step in sanctions against Russia for its ongoing war on Ukraine was decided this week at Cabinet.

It follows a directive on March 9 by the Office of the Attorney General and financial services regulators that all licensed entities were to report whether they held individual or company sanctioned accounts.

He said on March 20 and 21, a report from regulators said there were very few sanctioned relationships in the country. Mr Pinder said there were less than five relationships and a small number of liquid assets meaning deposits, managed assets or securities valued at about $7.5m.

“What we decided to do this week,” Mr Pinder said in response to reporters’ questions about sanctions, “Cabinet has decided to go one step further in its financial directives in that we have, consistent with the United Kingdom and other protected territories of the United Kingdom, decided from a public policy point of view to suspend the automatic exchange of financial information with the Russian Federation on Russian citizens.

“The goal of the policy position on that is that we wouldn’t want the Russian Federation to use funds of its citizens that are abroad in The Bahamas and in other financial centres but in The Bahamas for the purposes of the war on Ukraine.

“So, we have suspended the automatic exchange of information. That policy statement should be coming out from the Ministry of Finance if not today, tomorrow and so we’ll restrict the exchange of financial information on Russians with the Russian Federation.”

Asked whether the government would go further with its sanctions like restrictions at the airport, Mr Pinder said “not at this time”.

“We have advised both the Bahamas Maritime Association and private interest in maritime trade that they should be mindful of doing business with sanctioned individuals.

“It’s a very delicate position because there is legitimate commerce that occurs with Russian ties that aren’t related to sanctions and may not be related to people actually in Russia, they just happen to be Russian and we don’t want to disrupt legitimate commerce but we do want to take affirmative steps to ensure that sanctioned individuals and the Russian Federation can’t pursue that matter in Ukraine.

“I would take note that these actions are unilateral and so these go further than any of the decisions of CARICOM and any of the actions of CARICOM members. We have taken unilateral steps so I would say in the region The Bahamas is leading the way. The message is loud and clear.

“I met with the EU Ambassador this morning (yesterday) and she thanked us for leading the way on these matters and ensuring that The Bahamas is not a jurisdiction that would attract nefarious activity related to the war on Ukraine,” Mr Pinder said.

In March, the Central Bank said international banks and trust companies had about $420m in deposits and $2.5bn in custody or trust assets for which the ultimate beneficial owners were from or connected to Russia.

That information was up to February 28.

On Wednesday, State Legal Affairs Minister Jomo Campbell said following The Bahamas’ sanctioning of entities with Russian ties, one company was found to have an “overwhelming” value of $1.6bn in private company assets held in a Bahamian fiduciary structure.

The $1.6bn consisted of deposits, custody assets, assets held in a trust or other fiduciary structure and investment in companies and only $7.5m in assets were portfolio management custody assets.