The Bahamas has been designated a "medium risk" country in terms of money laundering and terrorist financing, according to a global research report conducted by the Basel Institute on Governance, ranking it fourth among countries in the region.
The 2012 Basel AML Index, obtained by Guardian Business, reveals The Bahamas was given a 6.37 rating, which falls in the medium range. While the score ranks in the top-third of all the countries assessed, no alarms should be rung, according to the former head of the Bahamas Institute of Charted Accountants (BICA).
"I don't see The Bahamas having that rating for very long because the steps that have been taken by regulatory bodies have better positioned us and they have put in a lot of work to ensure that Anti-Money Laundering (AML) programs have been up to standard," Reece Chipman said.
"We shouldn't panic because of the rating, because we have taken efforts to improve our global standing. But it does give us something to look at as to where we need to go from here."
Chipman added that some modifications made to certain policies and guidelines by certain regulatory bodies, such as the Securities Commission, Insurance Commission and the Compliance Commission, are instrumental towards lowering the risk rating going forward. He mentioned that training conducted by these entities will also help to ensure that the country is moving in the right direction and steering clear of a higher rating in the future.
The Bahamas is ranked 43 on the Basel AML Index, with only three other Caribbean countries ahead of them on the list. Trinidad and Tobago is ranked 31 on the list with a 6.67 score (medium), the Dominican Republic is listed at 17 with a 7.17 rating (high) and Haiti is four with a 8.16 score (high). Jamaica is the lowest ranked Caribbean nation on the index, listed at 118 with a 4.77 score (medium).
Chipman, also the director on the Board of Directors of the Institute of Chartered Accountants of the Caribbean (ICAC), said that other Caribbean countries will also follow suit to improve their standing when it comes to its anti-money laundering reputation.
"I think all the countries in the region are trying to do their part in terms of coming up to speed of what is required worldwide," he said. "They realize the disadvantage of not complying and they have to set these standards in order to attract certain levels of business."
The 2012 Caribbean Conference of Accountants held in Antigua comes at the perfect time, according to Chipman, as the focus of the event will be in how the role of accountants will change in anti-money laundering and terrorist financing. Other areas, such as risk management and fraud, will be covered during the conference scheduled for June 21.
The former BICA chief said the information disseminated throughout the conference will be beneficial to both accountants and other members of the financial sector.

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