The Tribune

ATTORNEY General Ryan Pinder said yesterday the Digital Assets and Registered Exchanges Bill 2022 fulfils both local and international obligations, while seeking to strengthen the economic regime that will bolster the middle class of the country.

The obligations to which he referred include those set out in the government’s recently released White Paper on the Future of Digital Assets in The bahamas along with the amended FATF recommendation 15, which requires that Virtual Asset Service Providers be regulated for anti-money laundering and countering the financing of terrorism purposes, that they be licensed or registered, and subject to effective systems for monitoring or supervision.

Meanwhile, Mr Pinder told Senators that while the Opposition may try to claim credit for the legislation, meaningful implementation was being executed by the Davis administration.

The amendment was presented for second reading in the Senate yesterday.

He said: “In our Digital Assets Policy White Paper we made it very clear that we will be compliant with international best practices and regulations and position The Bahamas as a jurisdiction of choice in the financial technology space, which would include digital assets, and specifically virtual asset service providers.

“In fact sections 1.6 and 1.7 of the White Paper provides that we will review the latest Guidance and implement any necessary changes to our anti-money laundering and countering threat financing regime.

“We committed to ensure that our legal and regulatory frameworks relating to digital assets are kept up to date and fully aligned with sound and accepted international standards, including FATF’s recommendations. This is how the new day government works, we fulfil promises without hesitation, we create frameworks for responsible, regulated economic diversification strategies and don’t waste time doing it.”

He said The Bahamas is currently rated partially complaint for recommendation 15 with respect to the technical deficiencies related to not having specific provisions for licenses and registrants of the commission to assess money laundering and terrorism financing risks of new business practices, including new delivery mechanism or the use of new or developing technologies for both new and pre-existing products.

All in all, the attorney general said the passing of this amendment is not only important to be compliant with international best practices and strengthen the country’s anti-money laundering regime, it is fundamental for the continued development of the financial services market which naturally translates to strengthen the economic regime to bolster the middle class of the country.

He said the reforms today, the focused implementation of the digital asset, fin-tech regime will build on the successes and add to the story of the Bahamas as a financial centre.