The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian anti-financial crime regulator yesterday said the country’s latest national risk assessment is due to be completed by end-June 2022.

Dr Cassandra Nottage, The Bahamas’ national identified risk framework co-ordinator, told a webinar organised by Next Level Solutions that all financial services industry segments are being reviewed in this assessment, including “banking, corporate services providers, insurance, gaming, securities, credit unions and money transmission services”

She said: “The results will inform the review of the 2015-2016 national identified risk strategy, which had covered 2017 to 2020. It is intended that the updated strategy will cover the period 2021 to 2024.”

Numerous consultations with industry stakeholders and the general public will be held, with blockchain technology and cryptocurrency among the key elements to be included in the assessments.

Dr Nottage said: “Just recently, the police warned of romantic scams. But there are also various schemes involving cryptocurrencies, as we hear more and more today about criminal groups utilizing the same to fund their operations or claim the illegally gained proceeds.

“AML intelligence.com, the compliance and anti-financial crime website, noted that cyber criminals have laundered $8.6bn through cryptocurrencies in 2021, up 30 percent on the previous year, according to Blockchain analysis firm, Chain Analysis.”

She added: “We are also getting information regarding non-fungible tokens (NFTs), which introduces even further room for anonymity, which are used to launder money for criminal organisations. According to MUO.com, NFT’s as they’re called, make it easier than ever to launder money from a criminal enterprise, helping criminal organisations around the world claim the ill-gotten gains.

All of these crypto and intended money laundering risks will be a challenge going forward for various financial service providers in that market space. We wish to stress that nothing will replace good old fashioned CDD (customer due diligence). In keeping with customer’s risk profile, all professionals in the compliance field need to be vigilant regarding their clients, their associates and their related businesses.

“There is no alternative to proper and appropriate customer due diligence being maintained on clients in a current updated and accurate fashion. We must be constantly on our guard,and continue to lean forward in ensuring that we have the best security to safeguard against breaches by criminal gangs or organisations which seek to capture client data for their nefarious purposes.”