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Central Bank outlines steps taken to increase correspondent bank comfort with Bahamian risk

The Central Bank of The Bahamas (CBOB) is making it easier for correspondent banks to track the positive and negative developments of local banks, by providing more access to public information and private information flows, CBOB’s Inspector of Banks and Trust Companies Charles Littrell said last week at The Nassau Conference.

Littrell called the relationship between local banks and correspondent banks a “happy” development, especially given the concerns stemming from this country’s need to become compliant with numerous international bodies in regards to taxation and anti-money laundering and combatting the financing of terrorism (AML/CFT) matters.

“The world’s major banks pay attention to the AML ratings agencies, but they form their own view on customer AML risk,” said Littrell.

“The Central Bank has identified a number of steps that should increase correspondent bank comfort with Bahamian risks, and the same steps should help our general reputation.”

Littrell said the recent and now annual conference series on AML/CFT risks should create “a stronger basis for Bahamian AML/CFT risk management, as we ensure that the public and private sectors are better aligned and have a better mutual understanding”.

He called the event a world-class conference that should indicate to stakeholders that The Bahamas should be taken seriously.

He added that CBOB will soon produce the first in an annual series of publications that will summarize AML/CFT risk management in The Bahamas.

“This publication is intended to fill the need in the AML/CFT space that the Central Bank’s Financial Stability Report fills in the financial risk space,” said Littrell.

“The first edition will necessarily represent a work in progress, notably for some statistical time series that we are just getting off the ground. Overall, however, we are confident that this report will become a handy and reasonably comprehensive reference document for local and international use.

“Our ability to present this document to a high standard, as well as the information it contains, is another demonstration that The Bahamas is willing and able to conduct its financial affairs in a way that effectively suppresses financial crime.”

He added that by next year, a website with archives and news sources on matters relating to Bahamian AML/CFT risk will be launched.

Chester Robards

Senior Business Reporter at The Nassau Guardian
Chester Robards rejoined The Nassau Guardian in November 2017 as a senior business reporter. He has covered myriad topics and events for The Nassau Guardian.
Education: Florida International University, BS in Journalism
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