The Central Bank of the Bahamas has issued for consultation a proposed Guidance Note on the Treatment of Politically Exposed Persons (PEPs), setting out how supervised financial institutions should identify, declassify, assess and monitor PEPs under its anti money laundering, counter terrorist financing and proliferation financing framework. The note expands on the Central Bank’s existing guidelines and reinforces the use of a risk based approach when onboarding and maintaining relationships with PEPs, particularly domestic PEPs. The proposed guidance gives practical considerations for assessing the risks posed by different categories of PEPs and outlines the factors institutions should weigh when assigning risk ratings. It directs firms to balance those assessments against the probability that an individual could engage in money laundering, terrorist financing or proliferation financing, and states that the approach is supported by international standard setters including the Financial Action Task Force and the Wolfsberg Group. Comments from supervised financial institutions and other stakeholders are invited by 12 June 2026, after which the Central Bank will consider the feedback in finalising the guidance note.
Central Bank of the Bahamas2026-05-22
Central Bank of the Bahamas launches 15 day consultation on politically exposed persons guidance for supervised financial institutions
The Central Bank of the Bahamas has issued for consultation a proposed Guidance Note on the Treatment of Politically Exposed Persons, detailing how supervised financial institutions should identify, declassify, assess and monitor PEPs under its anti-money laundering, counter-terrorist financing and proliferation financing framework. The note expands existing guidelines, reinforces a risk-based approach with a focus on domestic PEPs, and provides practical considerations for risk assessment aligned with Financial Action Task Force and Wolfsberg Group standards.