Speaking on a panel at the Association of International Banks and Trust Companies conference at Baha Mar on Wednesday, Pinder said the pace of change in international compliance rules has strained government capacity and resources.
“We have 500 different portals that you have to report different things to,” he said. “I’ve always thought that the right approach, and I certainly think today the right approach, is more of a central approach,” Pinder said. “In my opinion, I think government should really look at developing a compliance authority.”
He said such an authority could bring financial services compliance work “under one team” and “under one integrated portal,” with technology playing a central role.
“The fragmented approach to compliance functions, I think, is doing a disservice to the industry, and I think it’s doing a disservice to our reputation,” Pinder said. “I would really like to see us move towards an integrated compliance authority on behalf of government.”
He said the industry has worked to keep pace with changing standards, but its own compliance practices must also evolve. Digital tools and artificial intelligence could help institutions meet their obligations while improving the experience for clients, he said.
“The industry has done a fantastic job of keeping up with changes and keeping up with implementation,” Pinder said. “But with technology, with artificial intelligence, with the ability to integrate compliance digitally, I think that that is an immediate demand on industry.”
Pinder said the issue takes on added importance as The Bahamas prepares for its next international evaluation of its anti-money laundering framework. He said the review would look beyond the rules on paper to how effectively financial institutions apply them in their daily operations.
He also argued that rising compliance demands have made business less efficient and left some clients frustrated. In his view, a coordinated government approach would help reduce duplication while allowing the country to demonstrate that it meets international standards.
