The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas Real Estate Association (BREA) was yesterday urged to move to “full self-regulatory status”, and thereby ensure its members were adhering to global anti-money laundering (AML) standards.

The Compliance Commission’s inspector, Stephen Thompson, a presenter at the first ever BREA inter-island web conference, said real estate can be used for money laundering purposes, although no cases have been found in the Bahamas.

He added that certain real estate firms would meet the definition of the a financial institution and be captured under the law in terms of obligations for onsite anti-money laundering examinations .

“The only firms which meet the definition of a financial institution are those which receive funds for the purpose of settling a real estate transaction. Any firm beyond or outside that does not meet that definition. They are captured by the anti-money laundering laws in terms of obligations for on-site examination and so forth,” said Mr Thompson.

Mr Thompson, who was recently appointed National Anti-Money Laundering Coordinator, said all professions or industries within the Bahamas should be in a position where they could regulate members.

“We find a bit of an oddity in the Bahamas. There is nowhere else, to my knowledge, where you find a body that is similar to the Compliance Commission, meaning that in every other jurisdiction where the real estate industry is regulated for AML purposes it falls either to their Central Bank or some other agency in government,” said Mr Thompson.

He added: “In terms of the AML regulation which the Compliance Commission does, that ought not to continue in that vein. We believe that any profession or industry should move into a position where it would regulate its members.

“The Bar Association does it to some extent, BICA does it to some extent with the accounting profession, BREA does it to some extent with the real estate industry.

“However, we want BREA to move to full self-regulatory status where they would have the mechanisms in place to ensure that their members are adhering to global anti-money laundering standards,” Mr Thompson said.

“We want BREA to come to a point where it can regulate its own industry. We believe BREA can do it, they have the protocols in a place. I believe they have a disciplinary arm in place.

“However. we want them to take that final step and become fully autonomous when it comes to regulating their members. I believe that some discussions need to be had with the office of the Attorney General in that regard.”