By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Attorney General yesterday gave a frosty response to US government suggestions that money laundering prosecutions/convictions are almost non-existent, urging it to report and clarify any concerns before making them public.
Allyson Maynard-Gibson, responding to Tribune Business inquiries via e-mail, urged the US government to report any money laundering activity that had not been investigated to the Royal Bahamas Police Force for “appropriate action”.
Responding to the money laundering concerns raised in the US State Department’s international narcotics control strategy (INCSR) report, Mrs Maynard-Gibson urged it to back these up with factual evidence.
She added that the Bahamas had crafted legislation to address virtually all the US concerns regarding this nation’s anti-money laundering regulatory framework, and urged Washington to seek answers to any questions it had before publishing reports such as the INCSR.
Tribune Business revealed yesterday how that report criticised the Bahamas’ almost non-existent number of prosecutions/convictions for money laundering, suggesting there should be far more given the size of this nation’s financial services industry.
The US State Department said there were no prosecutions, or convictions, for money laundering by the Bahamian judicial authorities in 2013.
While data for 2014 was not available, the report said: “While the Government of the Commonwealth of the Bahamas has the requisite institutional and legal framework to combat money laundering, the number of prosecutions and convictions is low given the scale of the country’s financial sector.”
In response, Mrs Maynard-Gibson told Tribune Business: “As has been acknowledged by the US, the Bahamas’ financial services sector is well regulated.
“The Financial Intelligence Unit (commended in this report) analyses and, where appropriate, reports suspicious transactions to the police for the purpose of investigation.
“In the event that the US Department of State is aware of any money laundering activity that has not been reported or investigated, we would be grateful if they would provide that information to the Royal Bahamas Police Force, which will take appropriate action.”
Other Bahamian professionals, too, questioned the US assertion that money laundering prosecutions and convictions were virtually non-existent.
Although he could not be reached for comment, well-known attorney, Wayne Munroe QC, said in a social media posting that he was currently acting for defendants in three live money laundering-related cases that were before the courts.
In the posting, which was copied to Tribune Business, Mr Munroe wrote: “There are many prosecutions for money laundering under the Proceeds of Crime Act. I know, as I have defended many, and am defending three now.”
The State Department report, meanwhile, alleged that “significant sums of money” were laundered via the Bahamian financial services industry, even though it provided no data, evidence or concrete examples to support this assertion.
This drew a fairly terse response from Mrs Maynard-Gibson, who said: “Please produce evidence of that allegation to the Royal Bahamas Police Force.”
And she added: “The Bahamas would like to emphasise to its friend, the United States, that all relevant agencies, including the Office of the Attorney General, stand ever ready and willing to clarify and answer questions before finalisation of such reports.”
The INCSR report also reiterated complaints it has made in previous years, urging the Bahamas to pass laws criminalising bulk cash smuggling and membership/participation in organised criminal gangs.
It also called on this country to establish a “public registry” of all entities licensed in the financial services sector; implement a system to collect and analyse cross-border currency movement data; and create a currency transaction reporting system.
Mrs Maynard-Gibson said companies and their trading names were already registered in the Bahamas, and the beneficial ownership of all Bahamas-domiciled entities could be obtained, thus making the ‘public registry’ demand unnecessary.
And the Bahamas had prepared legislation, in the shape of the Travellers’ Currency Declaration Bill 2014, to address concerns related to bulk cash smuggling and cross-border currency movements.
The Attorney General added that legislation was also “currently before Parliament” to deal with another US concern, namely that the Bahamas was not in full compliance with UN Security Council Resolutions 1267 and 1373.
The two UN Security Council resolutions relate to the freezing/seizing of assets or funds belonging to alleged terrorists, and previous Caribbean Financial Action Task Force (CFATF) reports said the Anti-Terrorism Act did not implement 1267 “adequately”.
A 2010 follow-up report on the Bahamas by the CFATF said proposed legislative reforms would address these weaknesses, but it is unclear whether these have been enacted.
That 2010 report said financial regulators were finalising a report on a “fixed threshold currency reporting system”, while the currency declaration section on border entry forms was being revised.
Mrs Maynard-Gibson said the Bahamas would also welcome any anti-money laundering training opportunities that were provided to it.
Comments
Sickened 9 years ago
The U.S. really has to stop its crap! Before they go throwing stones they first need to clean up Delaware. Delaware is a money launderer's dream come true. The Delaware Trustees couldn't tell you what bank accounts are in the structure or what assets are in the structure or who has signing authority on which accounts. In Delaware the responsibilities of the Trustee is to set up a structure and then let the client do whatever he wants with it. No oversight at all. Then they have the gall to come complain to us if a client's passport expired a month ago saying we 'don't have proper KYC records'! We know our clients, we've met our clients, you don't even know who your client's really are.
ThisIsOurs 9 years ago
Hmmm that tactic didn't work for Fred Mitchell....when you go up against Goliath you'd better make sure God is on your side.
Everybody knows and Perry Christie himself verified for us that money has been laundered in this country for DECADES. Perry Chrustie admitted (and I'm saying PGC because he is current PM) that we had a problem with ILLEGAL gambling. ALL of these illegal gambling operators, or I should say all of the bigger players, have opened major businesses during the years when they were operating ILLEGALLY. Please explain how the money was kept separate?
TalRussell 9 years ago
Comrades the US might rephrase their question to. Can you provide a list of just the "politically connected" even investigated for money laundering?
TheMadHatter 9 years ago
Mr. Munroe says he has three cases before the courts NOW. But - how many has he had in the past that have resulted in convictions? He or any other attorney?
I would venture to say - ZERO.
Yes, all of us have to SIGN our deposit slips at the bank (as if we were receiving money, when we are actually depositing). Signing is for receipt of money or goods - not depositing.
The reason you have to sign is so that if the bank identifies you making say deposits of $300,000 in a year and they have no reason to expect that (such as if you have a very high paying job) - then they can question you, along with the police, and they can show to the courts SIGNED papers where you admitted to depositing it.
However, amazingly, that has all been for nought because nobody has laundered anything since 2006 when the new laws were put in place. I guess.
TheMadHatter
wellmuddo 9 years ago
I would suggest the AG look at the $100,000 in cash paid on an electricity bill belonging to the Chairman of our electrical corporation. Blatant money laundering right there.
duppyVAT 9 years ago
Remember that the Bahamas is a quagmire of web ............ we invite anyone to come in and to figure out our political enigma ................... its like the reefs that surround the islands
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