Govt 'has strategy' to oppose EU 'high risk' decision

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

ATTORNEY General Carl Bethel said the government has a strategy to oppose the European Union’s decision to classify the Bahamas as a "high risk" jurisdiction for financial crime.

He said the country is consulting with expert lawyers in Europe who are assisting with putting together a very focused strategy in response to this classification.

According to Mr Bethel in the Senate on Friday, the EU has explained why the Bahamas was regarded as high risk.

They said strategic deficiencies regarding legal and institutional anti-money laundering and countering terrorist financing framework are generally what led to their decision. However, according to Mr Bethel, the government resolved all of the EU’s listed grievances.

He spoke on the issue ahead of the Senate’s passing of amendments to the Commercial Entities Substance Requirement Act Friday. The changes were passed in the lower chamber Thursday.

He said these included: “Criminalisation of money laundering and terrorist financing: Done in the Proceeds of Crime Act (since 1996) and more recently in 2018; and the Anti-Terrorism Act, 2018.

“Customer due diligence and record keeping requirements: Done in the Financial Transactions Reporting Act, 2018, and its predecessor Law with the same name, since 2000.

“Reporting of Suspicious Transactions: Done since the FIU was established in 2000, and by virtue of the FTRA. The availability and exchange of beneficial ownership information. Done in MLAT requests, the Criminal Justice (International Cooperation) Act, and also at common law by way of Letters Rogatory. Additionally, we passed the Register of Beneficial Ownership Act, 2018.

“Powers and procedures of competent authorities: Done. All competent authorities have ALL the powers required by the international community, inclusive of the power of the spontaneous exchange of information for tax purposes.

“International Cooperation. Done since 2000. The existence of dissuasive, proportionate and effective sanctions. Done in the FTRA 2018.”

He continued: “So, if we have done all the things they complain about, why are we on their list? They cannot claim to be ignorant. I went to Brussels last week and met with their Director-General for Justice and gave them copies of our Laws. But, you know, they had already decided to put us on their list.

“Let me assure you, my fellow Bahamians, this EU listing is unwarranted, prejudiced and indefensible. The Government is pushing back, and we are seeking to do all we can to marshall international support against this botched, non-transparent, pre-judged, prejudicial and unjustifiable listing.

“Let me make it clear to the Bahamian people. With the announcement of this EU Commissioners’ list there are now a total of three global initiatives, which are targeting or which affect our financial services sector; all based in Europe. Of these three matters, only two could result in blacklisting for The Bahamas. The two are the Financial Action Task Force and the Base Erosion Profit Sharing. Failure to reach the standards set, called “global” standards, will result in Blacklisting. The EU Commissioners’ list is, as I said, a financial advisory.”

Regarding the amendments to the CESRA, Mr Bethel said the government was confident the Bahamas would not be blacklisted.