FATF Status

The Bahamas is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 18 December 2020

The FATF congratulates The Bahamas for the significant progress it has made in improving its AML/CFT regime. The Bahamas has strengthened the effectiveness of its AML/CFT system and addressed related technical deficiencies to meet the commitments in its action plan and remedy the strategic deficiencies identified by the FATF in October 2018.​

The FATF now de-lists The Bahamas from the list of Jurisdictions under Increased Monitoring. The Bahamas is therefore no longer subject to the FATF’s increased monitoring process. The Bahamas will continue to work with CFATF to improve further its AML/CFT regime.

European Commission List of Countries with Strategic Deficiencies in their AML/CFT Regimes

The Bahamas was removed from the EU Commission list of high risk countries in March 2022.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in the Bahamas was undertaken in December 2022. According to that Evaluation, the Bahamas was deemed Compliant for 20 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

The Bahamas faces significant challenges with corruption, as laws against it are inconsistently enforced, leading to reports of bribery and favoritism in government contracts. The current administration has accused the former government of misappropriating funds during the COVID-19 pandemic, prompting forensic audits that suggest substantial financial misconduct. Despite these allegations, no criminal charges have been filed against former officials, and the lack of independent verification of asset declarations further complicates the fight against corruption.

The Bahamas has a high per capita GDP of $25,194 and is classified as a developed country, yet it faces significant economic challenges, including high unemployment rates estimated between 20 to 25 percent due to the pandemic and reliance on tourism, which constitutes over 70 percent of its GDP. The government is working to diversify the economy by targeting investments in sectors such as light manufacturing, technology, and renewable energy, while also aiming to attract foreign direct investment and manage its substantial debt obligations.

The Bahamas has a stable investment climate characterized by political stability, a well-developed legal system, and a strong preference for U.S. goods and services. The government actively encourages foreign direct investment, particularly in tourism and financial services, while also targeting diversification into sectors like technology and renewable energy. However, challenges such as high labor costs, bureaucratic inefficiencies, and a lack of transparency in government procurement processes can hinder investment opportunities.