Caribbean Watch: Bahamas CFATF re-rating, ECCB comments on Scotiabank sale

Bahamas welcomes CFATF re-rating

The Bahamas' attorney general, Carl Bethel, expressed his hope that the US and the UK would "withdraw or soften their advisories" against The Bahamas after its "great leap forward" in fighting financial crime.

Bethel's comments, reported by Bahamian news outlet Tribune, came after Monday's re-rating by the Caribbean Financial Action Task Force (CFATF), which upgraded the nation's compliance with almost one-third of global standards.

Bethel said the re-evaluation, which the CFATF stated was based on The Bahamas' "progress in strengthening its framework to tackle money laundering and terrorist financing since their 2017 mutual evaluation", would enhance The Bahamas' ability to retain vital correspondent banking links.

He added that the findings will also "greatly strengthen the hand of the central bank in defending The Bahamas as a low-risk and blue chip financial center", providing a significant boost to its reputation, as reported in the Tribune.

"The Bahamas has been in an enhanced follow-up process, following the adoption of the CFATF mutual evaluation, which assessed the effectiveness of The Bahamas' anti-money laundering and counter-terrorist financing (AML/CFT) measures and the country's compliance with the FATF Recommendations," read the CFATF statement.

In line with the FATF procedures for mutual evaluations, The Bahamas has reported back to CFATF on the progress it has made to strengthen its AML/CFT framework.

CFATF's latest report upgraded The Bahamas' compliance with 13 of the FATF's 40 AML/CFT standards. The nation was found to have "fully addressed" weaknesses with five recommendations, with only "minor shortcomings" left on a further seven.

More importantly, The Bahamas is now non-compliant with none of the FATF's recommendations as a result of being upgraded to "partially compliant" with the UN anti-terrorism financing resolutions and the ability to freeze assets upon the request of another nation.

However, The Bahamas remains only "partially compliant" with 10 or one-quarter of the FATF's standards.

Bethel said The Bahamas was "the first country in the region" to request a re-evaluation, and be upgraded, within a year of an unfavorable CFATF assessment.

ECCB urges calm on Scotiabank deal

The Eastern Caribbean Central Bank (ECCB) has called for calm and patience as it addresses concerns raised in the Eastern Caribbean Currency Union (ECCU) over the announced sale of multiple Scotiabank properties in the region to Republic Financial Holdings Ltd (RHFL).

In a statement, the bank's monetary council said it is encouraging citizens and residents of the ECCU "to remain calm and exercise patience as the ECCB reviews the application from RHFL to acquire Scotiabank's business in the ECCU.

The US$123mn deal announced November 27 involves the Canadian bank selling its operations in Antigua and Barbuda, Anguilla, Dominica, Grenada, Guyana, St Kitts & Nevis, St Lucia, St Maarten, and St Vincent and the Grenadines to the RFHL, which is based in Trinidad and Tobago (T&T).

The ECCB monetary council met on December 7 to discuss the planned withdrawal of Scotiabank, where ECCB governor Timothy N. J. Antoine updated the council on the process since receipt of the RFHL's application.

"The ECCB, as regulator, will undertake a thorough review after which it will determine whether to approve the transfer," read the council's statement. "The Monetary Council will now await the outcome of the ECCB's review process, which may take several months, and will involve engagement with other regulators."