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 has laws against corruption, but their enforcement is inconsistent, leading to issues such as favoritism in government contracts and isolated bribery cases. Recent high-profile corruption charges against former officials highlight ongoing concerns, while the Public Disclosure Act has not been effectively implemented, with reports failing to be published since 2011. Despite some legislative efforts to improve transparency, significant gaps remain, including the lack of an Ombudsman and incomplete enactment of the Freedom of Information Act, which contribute to a perception of corruption that hinders foreign investment.

The Bahamas has an open economy primarily driven by tourism and financial services, which together account for 85% of its GDP. The country imports 80-90% of its food and fuel from the United States, and while it has a favorable investment climate with few direct taxes, challenges such as bureaucratic delays and a lack of transparent investment procedures persist.

The investment climate in The Bahamas is characterized by an open economy primarily driven by tourism and financial services, which together account for 85% of GDP. While the government actively seeks foreign direct investment (FDI) and has implemented reforms to streamline the approval process, challenges remain due to a lack of transparency in investment procedures and high labor costs. U.S. investors benefit from various incentives, but they should remain cautious of bureaucratic hurdles and inconsistent public contract tender processes.