The attorney general has pledged to "beef up" support of regulatory agencies to monitor cash for gold businesses following an amendment to the Financial Transactions Reporting Act (FTRA).
Maynard-Gibson noted that the amendment, which categorizes any store dealing with secondhand precious stones and metals as a "financial institution", is a vital part of the country's efforts to meet anti-money laundering and counter terrorism financing (AML/CTF) efforts.
"It was one of the requirements for The Bahamas to have a largely compliant rating in accordance with the FATF 40-plus recommendations.
"[The amendment] is already in force. Right now the regulations are being promulgated, and also the resources are being allocated to beef up the regulatory agency," said Maynard-Gibson.
The amendment would require the Securities Commission of The Bahamas (SCB) to monitor the activities of cash for gold businesses and pawnshops, requiring increasing know your customer (KYC) standards, including reporting foreign exchange earnings, in a bid to decrease the risk of money laundering in the country.
The current state of secondhand precious metal and precious stone stores poses considerable risks for the country's compliance with international anti-money laundering practices with the Financial Action Task Force (FATF).
Maynard-Gibson added that the government will work with the appropriate regulatory bodies to efficiently handle the new responsibility.
"They are being asked to take on the responsibility also of dealing with cash for gold enterprises, which are different. We're making sure that the proper resources are deployed to them to enable them to do their job effectively," stated Maynard-Gibson.
With the appropriate oversight framework in place, the jurisdiction would be allowed to engage such trading by meeting international transparency and accountability standards.
Under the recent amendment, any business that participates in the "buying for the purpose of trade, sale, exchange or otherwise dealing in any previously-owned precious metals or precious stones, whether altering the same after acquisition or not," is labeled a "financial institution" subject to the FTRA.
The amendment additionally applies to pawn businesses lending money "on the security of previously-owned precious metals or precious stones of which the person takes possession, but not ownership, in expectation of profit, gain or reward".

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