Bahamas in talks with CARICOM on decision to impose sanctions on Russia

Bahamas in talks with CARICOM on decision to impose sanctions on Russia

NASSAU, BAHAMAS — The Bahamas government said yesterday it is in ongoing conversations with CARICOM members states regarding sanctions recently imposed against Russia.

Over the weekend, The Bahamas joined the list of western countries that have imposed sanctions on the financial resources of Russian businesses and oligarchs in the fallout from Russia’s invasion of Ukraine last month, with directives given to local institutions.

A Ukrainian soldier inspects a damaged military vehicle after fighting in Kharkiv, Ukraine, Sunday, Feb. 27, 2022. (AP/MARIENKO ANDREW)

In a statement, the Ministry of Foreign Affairs addressed the matter, stating it “wishes to direct the public’s attention to recent orders from the regulators of the financial services sector and the attorney general”.

“They are the INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) ACT (CHAPTER 16) and INTERNATIONAL OBLIGATIONS (ECONOMIC AND ANCILLARY MEASURES) (UNITED STATES OF AMERICA) (UNILATERAL SANCTIONS) DIRECTIONS 2022 and the Group of Financial Services Regulators Directive on Russian business activities,” the statement read.

“Pursuant to our treaty obligations under the revised Treaty of Chaguaramas, we have shared these directives with our CARICOM partners.

“The conversation continues with them.”

Prior to the new directives, The Bahamas had been somewhat on the fence about imposing sanctions against Russia.

Prime Minister Philip Brave Davis noted the Caribbean Community had taken the position to “sit back and wait” to see whether the UN Security Council (UNSC) would pass a resolution for member states to impose sanctions — which Foreign Affairs Minister Fred Mitchell later noted to be an unlikely turn of events.

Mitchell noted, however, that The Bahamas could act upon a formal request from another nation; and shortly after, the United States, a longtime ally of The Bahamas, made such a request.

Minister of Foreign Affairs Fred Mitchell.

Yesterday, the Ministry of Foreign Affairs, in its statement, said: “Foreign ministers have been charged by the heads of government to continue an active review on these matters and keep the heads advised.

“The Bahamian measures direct all financial institutions to review dealings with Russians, Belarusians, Russian and Belarusian entities on the prescribed schedule and report back to the attorney general.

“The financial regulators have advised all financial institutions not to engage in dealings with Russians, Russian entities, Belarusian and Belarusian entities who are subject to international sanctions.”

The ministry explained the directive from the Central Bank, the Securities Commission, the Insurance Commission and the Gaming Board issued yesterday reads, in part: “Regulated entities should apply the highest level of risk management controls to deter the potential for any misuse of the Bahamian financial system in the current global environment and, indeed, every circumstance.

“For the purposes of this directive, sanctions include those issued by the United States, Canada, United Kingdom, the European Union and any other jurisdictions, which the GFSR (Group of Financial Services Regulators) may specify from time to time.”

The ministry noted, however, this is an “evolving story and remains under active review”.