Paris, 7 January 2022 (TDI): The Financial Action Task Force (FATF) published the 4th enhanced follow-up report (FUR) to investigate the progress of the 4th round mutual evaluation report (MER) of the Bahamas which was adopted in July 2017.
The enhanced follow-up report analyses the progress of the Bahamas in addressing certain technical compliance deficiencies which were identified earlier in the mutual evaluation report.
Overview of progress
The Bahamas made significant progress by addressing technical compliance deficiencies along with implementing new requirements. The Bahamas requested a rerating after being found to be partially compliant (PC) on requirements 2, 6, 7, 8, 19, 22, 24, 26, 27, 28, and 33 and largely compliant (LC) on requirement 15 earlier.
Subsequently, the Bahamas was rerated for requirements 6, 7, 19, 22, 24, 26, 27, 28, and 33. While 2 and 8 remain the same and 15 was downgraded.
A follow-up report by FATF Partner @CFATFGAFIC sets out the progress that The Bahamas has made to tackle #moneylaundering and #terroristfinancing.
See the update on the actions taken👉 https://t.co/B7sOOZpe3y#FollowTheMoney #thebahamas #cfatf pic.twitter.com/ofJ44HIld7
— FATF (@FATFNews) January 5, 2022
With a low or moderate effectiveness level, the Bahamas will remain in enhanced follow-up and will continue to report back to the FATF.
Mutual Evaluations (MER)
The Financial Action Task Force (FATF) conducts peer reviews of each of its members on a continuous basis to check the level of compliance for the FATF recommendations.
It presents a comprehensive description and analysis of each country’s system for preventing criminal abuse of the financial system along with money laundering and terrorism financing.
Components of Mutual Evaluations
Mutual evaluations have two basic components. Firstly, the assessment team visits the assessed country and requires evidence that measures are being taken to ensure the deliverance of the right results. What is expected from a country differs on the terrorist financing and money laundering along with and external forces it is exposed to.
Secondly, the country must provide information on laws and regulations that are being used to actively combat money laundering and terrorism financing.