Among the proposed amendments to its Guidelines on the Prevention of Money Laundering & Countering the Financing of Terrorism (the AML/CFT Guidelines), The Central Bank of The Bahamas proposes to require money transmission service providers - like Cash'n'Go and OMNI Transfers - to include their money transmission agents in their AML/CFT programs and to monitor them for compliance. That proposal is one of many included in the public consultation document floated by the bank on the proposed revisions to the AML/CTF guidelines, which were last updated in September, 2013. The proposals set out in this consultation paper stem from a review of the AML/CFT guidelines intended to ensure that The Bahamas' AML/CFT regime remains up to date in light of the latest changes to the Financial Action Task Force (FATF) recommendations.
The proposed amendments seek to clarify licensees' obligations in relation to assessing their money laundering and terrorist financing (ML/TF) risks and applying a risk-based approach. The key changes will include new obligations for licensees to identify and assess the overall ML/TF risks they face, and to take steps to manage and mitigate the risks that are identified either by the licensee itself, by the Central Bank or other relevant authorities. Another of the proposed amendments will require licensees to ascertain customer's identity using reliable, independent source documents, data or information, and verify the identity of any person purporting to act on behalf of the customer and to confirm that such person is properly authorized to so act. The amendments reflect what already exists in practice and what is required under the provisions of the Financial Transactions Reporting Act 2000 and the Financial Transactions Reporting Regulations 2000.
The AML/CFT Guidelines currently require licensees to identify those persons with ultimate control over a company's business and assets, with particular attention being paid to any shareholders or others who exercise a significant influence over the affairs of the company. The proposed amendments seek to clarify the expectation that where no natural person is identified as a beneficial owner, licensees are to identify and verify the identity of the relevant natural person who holds the position of senior managing official. Another proposed amendment will introduce an additional option for licensees to not open an account, commence a business relationship, or terminate a business relationship, where CDD (customer due diligence) measures are not completed.
Money transmission service providers (MTSPs) and their agents (money transmission agents or MTAs) are subject to the same AML/CFT obligations and the AML/CFT compliance of MTAs is routinely reviewed at the time of onsite inspection visits to MTSPs. To reflect the current practice, the amendments will include an explicit requirement for MTSPs to include their MTAs in their AML/CFT programs and to monitor them for compliance. As MTSPs and MTAs are permitted to conduct wire transfers in The Bahamas, a new requirement for payee information to accompany a wire transfer will be added to reflect changes in the revised standards.
The Central Bank lists two non-bank money transmission service providers licensed at the end of September 30, 2015 - Bramer Money Transfers Ltd., trading as Cash'n'Go, and Sun Transfer Holdings Ltd., trading as OMNI Transfers - and a dozen money transmission agents. With respect to transparency of legal arrangements, the proposed amendments will formalize and clarify the existing practice of trustees holding basic information on other regulated agents of, and service providers to, the trust, including investment advisors or managers, accountants, and tax advisors as a practical necessity in meeting their responsibilities under the trusteeship. The amendments will also clarify the requirement for licensees to verify the identity of any natural person exercising ultimate ownership or control over the trust and to ensure that information obtained is both accurate and kept up to date.
Click here to read more at The Nassau Guardian
