Securities Commission of The Bahamas rates financial services segment Medium for financial crime risk

The Securities Commission of The Bahamas published a sectoral assessment rating the financial services segment of financial and corporate service providers as Medium for money laundering, terrorist financing and proliferation financing risk. The segment’s vulnerability score was 0.47 on a scale of 0.0 to 1.0. Cash handling and activity concentrated among the five largest firms sustain the rating, while a predominantly domestic client base and traceable lending and payment products limit exposure. The assessment covers 42 licensed money lenders, payment businesses and financing businesses with 102,141 client relationships, 98% of which are domestic. Money laundering risk is rated Medium, making source of funds scrutiny for cash intensive relationships a supervisory priority. Measured terrorist financing and proliferation financing exposure is low, although only 63% of firms’ risk assessments expressly cover proliferation financing. Sanctions screening is reported at 95% of firms. The Commission will use entity risk ratings to determine supervisory intensity, focus examinations on larger firms and cash handling businesses, and corroborate self-reported controls. It expects firms to keep risk assessments and compliance appointments current and report suspicious activity, including attempted transactions.