The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Fraudulent Bahamian financial transactions decreased in value by 72.6 percent to a collective $5.8m in 2023, the Central Bank revealed yesterday, with the frequency of such crimes also dropping sharply.

The banking regulator, in its 2023 annual report, said the data was based on card and cheque transactions with debit cards accounting for two-thirds of reported theft incidents which declined in number to just over 2,000 last year.

“In 2023, the reported frequency of these cases declined by two-thirds to 2,080 while the associated value reduced more sharply to $5.8m from $21.2m the previous year,” the Central Bank disclosed. “Disaggregated by type, debit card fraud incidence comprised 66.6 percent of total cases, while the corresponding value represented 23.1 percent of the overall value.

“The volume of credit card fraud constituted 32 percent of total cases and 4 percent of the attendant value. With the sustained reduction in cheque usage, reported cheque fraud was 1.3 percent of total incidence. However, these cases represented 72.9 percent of the overall amounts, reflective of the typical high value of these types of transactions.”

The Central Bank also revealed it is working on a National Financial Inclusion Strategy (NFIS) 2024-2028 to ensure all residents have access to financial services. Its core features include wider use of the Sand Dollar, the Bahamian digital currency, and extending the “digital reach of services” including for government payments.

Other objectives are to increasingly focus on micro, small and medium-sized businesses as well as better data collection on financial inclusion. “The vision for the NFIS is for the delivery of financial services at an affordable cost to all segments of the Bahamian society,” the Central Bank said.

“While financial inclusion largely focuses on all segments of the population, The Bahamas’ NFIS would emphasise access to financial services and products for vulnerable groups, such as those that are currently excluded or are under-served, particularly those in the Family Islands.

“This would also entail a focus on the youth, aged and retirees, disabled and the undocumented population. As well, emphasis would be placed on micro, small and medium-sized entities (MSMEs).... It is vital that all persons have access to services from which they can select, that they fully understand how to use them, and that they can do so at a reasonable cost.”

The Central Bank continued: “For The Bahamas, a targeted financial inclusion outcome would be a state in which all persons in the country have both access to and usage of suitable, and affordable, financial services from formal financial institutions regardless of where they live, gender, nationality, Immigration status or socio-economic factors such as age, income, occupation and education....

“In initial work already undertaken by the Central Bank, the draft NFIS, on which public consultation would be undertaken in the first half of 2024, would outline a holistic and comprehensive strategy to pursue financial inclusion for all Bahamians.

“Its components would strive to make significant progress over the next five years (2024-2028) in areas where the greatest financial gaps have been identified, and attempt to set the stage for further progress. Such progress, both in the short and medium-term, would require the co-operation and co-ordination across many stakeholders in government, regulators, civil society and the private sector,” the Central Bank added.

“Equally important, the undertaking would be supported with adequate financial resources and technical capacity. The improved financial literacy, and expanded access to and usage of appropriate and affordable financial products, as outlined in the draft NFIS, would also promote greater financial resilience among households, and in important instances reduce dependence on the Government.

“Improved financial inclusion would also promote a stronger culture of savings and investment, strengthening potential economic growth.”