Functions & Oversight - Compliance Commission

Regulatory oversight and primary functions, as described in section 32 of the Financial Transactions Reporting Act, 2018 (FTRA, 2018), requires the Compliance Commission:

  • to maintain a general review of the financial institutions in relation to the conduct of financial transactions and to ensure compliance with the provisions of FTRA, 2018; and
  • to conduct on-site examinations of the business of the financial institution, when deemed necessary by the Commission at the expense of the financial institution, for the purpose of ensuring compliance with the provisions of the FTRA, 2018, and in such cases, where the Commission is unable to conduct such examination, to appoint an auditor at the expense of the financial institution to conduct such examination and to report thereon to the Commission.

Services Offered

The Compliance Commission supervises its Registrants through a combination of the following programmes:

  • Registration
  • On-site and off-site examinations
  • A risk based approach to AML/CFT/CPF inspections
  • Education, training and awareness
  • Directives and notices when necessary.

Powers of the Compliance Commission

The Compliance Commission has powers to require the production of records. Section 34 of the Financial Transactions Reporting Act, 2018 provides:

  • In the performance of its functions under this Act, the Commission may at all reasonable times require a financial institution-
    • To produce for examination, such records that are required to be kept pursuant to section 15; and
    • To supply such information or explanation, as the Commission may reasonably require for the purpose of enabling the Commission to perform its functions under this Act.
  • Any person failing or refusing to produce any record or to supply any information or explanation as is required by       subsection (1), commits an offence and is liable on summary conviction to a fine not exceeding fifty thousand dollars or to imprisonment for a term not exceeding three years or to both such fine and imprisonment.

Other Regulatory Agencies mandated by law to combat AML/CFT/CPF regulation:

There are five other Financial Services Regulators responsible for enforcing compliance with the provisions of the FTRA, 2018 by financial institutions that they regulate. These other regulators are the Central Bank of The Bahamas for activities regulated under the Banks and Trust Companies Regulation Act; the Securities Commission of The Bahamas for activities regulated under the Securities Industry Act and the Mutual Funds Act; Insurance Commission of The Bahamas for activities regulated under the Insurance Act and the External Insurance Act; the Financial and Corporate Service Providers for activities licensed or registered under the Financial and Corporate Service Providers Act; and the Gaming Board in respect of licensees, which are subject to its regulation. The Commission is the only body that does not license the activities of the financial institutions which it supervises.