NASSAU, Bahamas, CMC – The Central Bank of the Bahamas (CBB) says international banks and trust companies operating here have in excess of two billion US dollars “in custody or trust assets”, with ultimate beneficial owners from or connected to Russia.

In a statement, the CBB said that earlier this month, the Group of Financial Services Regulators of The Bahamas issued a directive to Bahamian financial institutions against doing business with sanctioned persons and entities of Russia and Belarus.

The move follows Moscow’s decision to launch an invasion of Ukraine with the European Union, the United Kingdom and the United States leading the sanctions against Russia.

In the statement, the CBB said following the local regulator’s call, it has received several enquiries from the press on the amount of Russian business in the jurisdiction’s banks and trust companies.

“As an extension of its regular surveillance, the Central Bank has gathered data from international banks and trust companies on their level of Russian business activities. The results of this exercise indicated as at 28th February 2022, this sector held approximately US$420 million in deposits and US$2.5 billion in custody or trust assets with ultimate beneficial owners from or connected to Russia,” the CBB said.

It noted that the greatest proportion of Russian exposure would be linked to the international sector.

“However, the Central Bank is currently canvassing domestic financial institutions – that is the commercial banks, money transmission business and electronic money service providers – to ascertain any level of exposure within those sectors,” the CBB stated.

The CBB further said that the information it has disclosed “are aggregates for the international banking and trust sector, and not specific to any sanctioned interests”.

Earlier this month, the government warned local companies to be very cautious when conducting business with any Russian entity even as the main opposition Free National Movement (FNM) called on the government to act more decisively in the interest of sovereignty.

A statement from the Cabinet Office said the issue of sanctions had been discussed and “we are in consultations with all our partners and stakeholders, both domestic and international. This remains an evolving matter. In the meantime, we are advising all entities within The Bahamas that they ought to deal with appropriate caution in respect of any transactions in our country with Russian individuals and entities who have been sanctioned by the United States, EU, Canada and the United Kingdom,” the statement said, adding “we continue to deplore the attack on Ukraine by the Russian Federation”.

The United States Embassy in Nassau has urged The Bahamas to limit Russia’s access to the Bahamian financial system and to restrict this country’s airspace to Russian aircraft.