It's a club made up of 29 countries, each of which, to a greater or lesser degree, imposes a combination of income, sales, capital gains, inheritance, value added and departure taxes in addition to import and export duties to run their fiscal houses. That's why you've got very paranoid bureaucrats running in circles. I'm not saying that money laundering isn't evil or that it doesn't happen. I'm saying the taxing countries intend to put countries like the Bahamas out of business because they don't like the competition. They see their tax base eroding because business is finding better places to grow.
More money is laundered through New York banks on a daily basis than exists in the Bahamas.
Know Your Customer - one more bit for the soup. The FATF is concerned that Bahamian banks do not know their customers. Let me give you another example. In the 1970s small economical Japanese cars invaded the U.S. market and the U.S. automobile manufacturers were threatened. With the help of the Government they negotiated quantitative limits on such imports.