UN Orders - Compliance Commission of The Bahamas

The United Nations (UN) Security Council Resolution 1267 (UNSCR) (See UN Security Council, UN Resources and any other subsequent Resolutions) and its subsequent resolutions has produced a list of designated persons/countries with known or suspected terrorist connections.  The Resolutions require countries to freeze, without delay, the funds or other assets and to ensure that no funds or other assets are made available, directly or indirectly, to or for the benefit of any person or entity designated by or under the authority of the UNSCR.  This list is updated periodically and is forwarded to the UN’s contact in each jurisdiction. The National Identified Risk Framework Coordinator (NIRFC) shall be responsible for maintaining a list of designated entities as provided by the UN; ensuring that the list remains current; circulating the list without delay upon receipt to financial institutions; requesting information on whether any designated entity on the list has funds in The Bahamas; and maintaining a consolidated list of all orders issued by the court and circulating the same to all financial institutions.  Further, the FIU shall be responsible for furnishing the Attorney General with the information required to facilitate an application under section 45 of the ATA, 2018 where anyone, as designated on the list, has funds in The Bahamas. All Registrants of the Compliance Commission should refer to section 44 of the ATA, 2018 for specific details regarding the reporting obligation in accordance with the law.        

To date, the Bahamas National Identified Risk Coordinator has notified regulators of UN Orders, namely, including the Afghanistan Order, Iraq Order, Iran Order and the North Korea Order.  The Commission has subsequently notified its registrants of the under-noted UN Orders:

Please see further Notices sent to Registrants under Directives and Notices

Moreover, member States of the United Nations Security Council have adopted a new resolution, UNSCR 2462, recognizing the essential role of the FATF in setting global standards to combat money laundering, terrorist financing, and weapons of mass destruction/proliferation financing. The resolution urges all countries to implement the FATF Recommendations, including the standards to assess the specific terrorist financing risks they face. In addition, the resolution requires countries to criminalize terrorist financing in line with FATF Recommendation 5, recognizing that countries must criminalize the financing of a terrorist act but also the financing of support to terrorist organizations and individual terrorists for any purpose, even in the absence of a link to a specific terrorist act.   

WHAT MUST BE DONE AFTER YOU RECEIVE AN ORDER LISTING THE DESIGNATED ENTITIES: 

Pursuant to Section 44 of the Anti-Terrorism Act 2018, when a financial institution receives the list of designated entities the financial institution shall without delay:

  1. Registrants are required (without delay) to review their client base records to determine whether or not they hold funds, other financial assets or economic resources which are either owned or controlled directly or indirectly by the persons or entities listed in the respective Order or any person acting on their behalf or at their discretion;
  2. Freeze all the funds held by it in the name of a designated entity;
  3. Inform the Attorney-General and the Financial Intelligence Unit that a designated entity has funds with the financial institution providing all details of such funds; and
  4. Inform the designated entity that the funds held at the financial institution have been frozen.
  5. Report any findings to the Compliance Commission via Email at compliance@bahamas.gov.bs together with any additional information that would facilitate compliance with the legislation.
  6. The designated entity may institute proceedings in the Supreme Court for an order releasing the funds that have been frozen in the accounts within a period of fourteen days after notified of the same.
  7. After the fourteen days after the designated entity has been informed that the funds held in the account have been frozen, the Attorney-General may commence proceedings under section 45 leading to the making of an order by the court for the confiscation of the assets held.