Wayne Munroe speaks in the House of Assembly on October 15, 2025. Photo: Dante Carrer/Tribune Staff
By FAY SIMMONS
TRIBUNE Business Reporter
jsimmons@tribunemedia.net
THE ATTORNEY General yesterday defended the need for tighter financial services laws as the Bahamas seeks to protect its international standing, arguing that anti-financial crime measures are not merely a response to foreign pressure.
Wayne Munroe KC told the Senate that the Companies Amendment Bill and Anti-Terrorism Amendment Bill will address legislative gaps as The Bahamas undergoes the Caribbean Financial Action Task Force's fifth-round mutual evaluation of its anti-financial crime regime.
Mr Munroe said bearer shares create risks because they can make it difficult to identify the people who ultimately own a company. “To be clear, bearer shares thus do pose a risk to money laundering. If you don't know who owns the share, how do you hold somebody accountable?” he said.
The Companies Amendment Bill wil. prohibit bearer shares and bearer share warrants under the Companies Act, closing a gap that allows ownership to be established through possession of a share instrument rather than registration. Existing bearer shares would have to be recalled, and cancelled or replaced with registered shares, within a six-month transition period.
The Anti-Terrorism Amendment Bill will update the definition of designated persons and entities under the Anti-Terrorism Act to incorporate targeted financial sanctions linked to nuclear weapons proliferation financing, including relevant United Nations (UN) Security Council designations.
Mr Munroe acknowledged that The Bahamas had previously changed its laws after international pressure over its financial services framework, but argued that the measures were also in the country's own interest. “As a small nation, we must act in our overall interest,” he said.
He added that bearer shares have already been phased out for international business companies (IBCs), but said corporate service providers in the US had subsequently made inquiries about transferring bearer share companies to jurisdictions where they remained permitted.
“That’s different rules for different persons,” Mr Munroe said, comparing the situation to “a boxing match” in which one side was barred from hitting below the belt while the other could strike anywhere.
The debate also highlighted the importance of ensuring that legislative changes are implemented effectively as The Bahamas seeks to demonstrate compliance with international standards.
Senator Ellsworth Johnson said authorities will need to show how existing bearer shares are identified, recalled and cancelled, and how compliance with the six-month transition period will be monitored.
He said legislative amendments alone will not be enough without the administrative arrangements, co-ordination and evidence needed to demonstrate that the measures work in practice.
Mr Munroe said his office has been engaging with financial services professionals and compliance groups in preparation for the CFATF mutual evaluation, adding that the profession had co-operated with the Government on the process.
He urged senators to consider the practical risks posed by anonymous ownership, arguing that the ability to identify beneficial owners was essential to holding people accountable.