Continued FATF Scrutiny Likely, Warns Ingraham

by Amanda Banks, Tax-News.com, London

18 December 2002

Speaking during last week's Parliamentary debate on the extension of the Know Your Customer (KYC) deadline to December 2003 in the Bahamas, former Prime Minister, Hubert Ingraham warned that despite being in compliance with the FATF's anti- money laundering recommendations, the jurisdiction is likely to face continued scrutiny from the multilateral organisation.

Recommending that the current government 'move with caution with respect to the introduction of new financial services products, keep a watchful eye on evolving concerns internationally about insurance generally and seek to put us in a position to comply with evolving rules,' Mr Ingraham cautioned that two issues remain unresolved which could lead the Financial Action Task Force to remain watchful.

According to the former PM, Criteria 5 and 14 of the 40 recommendations (which, incidentally remain unresolved in the majority of FATF member nations), dealing with the requirement for intermediaries such as lawyers and accountants to divulge the names of the beneficial owners of funds held on account, and to engage in ongoing anti-money laundering training have not yet been fully addressed.

Although he explained that these were not matters which concerned the FATF when it initially blacklisted the Bahamas in 2000: 'these issues are still matters of concern with which the Bahamas will sooner or later come to terms.'

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