Economic sanctions to also impact Belarus
NASSAU, BAHAMAS — The Bahamas has joined the list of western countries that have imposed sanctions on the financial resources of Russian businesses and oligarchs with directives given to local institutions yesterday.
It represents the first time the country has introduced sanctions in the absence of a resolution from the United Nations Security Council (UNSC) and follows a formal request from the United States for the country to take direct action against Russia’s invasion of Ukraine.
The sanctions are essentially two measures: the Attorney General has directed local regulators to report on whether any of the entities flagged by the US have local dealings, and the second is a directive from local financial regulators for institutions to adopt the restrictions imposed by the US, UK, and the EU.
Under the International Obligations (Economic and Ancillary Measures) Act, the gazette refers to the unilateral sanctions imposed by the United States executive order regarding the financial resources of the Russian Federation and those of certain entities and individuals linked to the Russian Federation.
The gazette includes a listing of specific individuals and entities that have been flagged by the US for engaging or attempting to engage in financial activities that have contributed or pose a risk of contributing to the invasion.
The attorney general has directed financial regulators, alongside the Registrar General, to request licensees and registrants to perform a search of their database and register of beneficial owners for any of the named individuals or entities, and report the findings.
“And whereas the US advises that the following activities by a US person are prohibited, except to the extent provided by law, or unless licensed or otherwise authorized by the Office of Foreign Assets Control (OFAC),” it read.
“Any transaction involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation, including any transfer of assets to such entities or any foreign exchange transaction for or on behalf of such entities.
“All other activities with entities (found in Annex) determined to be subject to the prohibitions of the directive or involving their property or interests in property, are permitted, provided that such activities are not otherwise prohibited by law, the order, or any other sanctions program implemented by the OFAC.”
It continued: “Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions of the directive; and any conspiracy formed to violate any of the prohibitions of the directive.”
Meanwhile, in a separate notice, the Group of Financial Service Regulators (GFSR) advised regulated entities not to engage in transactions with sanctioned persons, entities, or businesses linked to Russia and Belarus.
Those regulators include: the Central Bank of The Bahamas, Securities Commission of The Bahamas, Insurance Commission of The Bahamas, Compliance Commission of The Bahamas, and the Gaming Board for The Bahamas.
“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,” read the GFSR statement.
It added: “For the purposes of the directive, sanctions include those issued by the United States, Canada, United Kingdom, the European Union, and any other jurisdictions, which the GFSR may specify from time to time.”
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