Money laundering is a significant issue in Barbados since the country serves as a transit point for illegal substances. Barbados' government has taken many actions to prevent and discourage the spread of money laundering and terrorist financing.
Barbados approved the Anti-Terrorism Act in 2002, putting into effect the United Nations (UN) International Convention for the Suppression of Terrorist Financing and UN Security Council Resolution 1373. Barbados criminalized money laundering with the Money Laundering (Prevention and Control) Act in 1988. (MLPCA). Money laundering is now penalized by a maximum $1 million USD punishment and 25 years in jail under the MLPCA. Barbados created the Anti-Money Laundering Authority (AMLA) in 2000, in addition to this different legislation. The AMLA is Barbados' Financial Intelligence Unit (FIU). The AMLA was established to guarantee that all financial institutions observe and comply with the MLPCA's compliance.
Barbados' financial institutions are expected to adhere to a stringent client verification policy and report and record all transactions over $5,000 USD. Suspicious Activity Reports (SARs) must be filed with the AMLA if a transaction is exceptionally substantial or suspicious. Furthermore, Barbados has published Know Your Customer (KYC) standards to verify each customer's identification and guarantee that they are followed as part of the country's expanding AML system .
The Central Bank of Barbados
The Central Bank of Barbados, placed in the town of Bridgetown, is responsible for promoting financial stability, maintaining a strong financial structure, facilitating the development of capital markets, trying to channel investment bank credit into productive activities, and promoting credit and exchange situations that are conducive to Barbados' clean and tidy and maintained economic growth.
The East Caribbean Currency Authority (ECCA) was Barbados' major financial organization prior to the creation of the Central Bank in 1972. The ECCA, unlike the modern Barbados Central Bank, could not control financial firms and could not guarantee its policies.
Barbados' AML Regulators and Regulations
The worldwide dangers of money laundering, terrorism financing, and the proliferation of weapons of mass destruction have compelled finance industry regulators and financial firms to increase their monitoring in the help of governments' efforts to stop these risks and reduce the likelihood of their counties or organizations becoming engaged.
Regulators
- The Barbados Central Bank ("CBB") Anti-Money Laundering Authority (AMLA)
- FSC (Financial Services Commission)
- The International Business Unit ("IBU") of the Ministry of International Business and Industry
- CAIPO (Corporate Affairs and Intellectual Property Office)
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FIU (Financial Intelligence Unit)
Regulations
- Financial Institutions Act, Section 324A (FIA)
- Money Laundering and Terrorist Financing Act, 2011-23 (MLFTA)
- Money Laundering and Terrorist Financing Amendment Act, 2019 -22 (MLFTAA),
- Anti-Terrorism Act (Chapter 158). (ATA)
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2019 Anti-Terrorism (Amendment) Act (ATAA)
Barbados made some progress with its anti-money laundering system. Barbados has conducted a first risk assessment, which identified drug trafficking as the country's primary source of money laundering. In addition, Barbados is working on a more thorough national risk assessment (NRA) after concerns that the last NRA did not uncover substantial national money laundering threats and weaknesses. Barbados has a thriving international financial services industry.
Sanction Scanner's Solution
Know Your Customer (KYC), Customer Due Diligence (CDD) , Transaction Screening, and Transaction Monitoring are some of the steps used within the framework of the legislation' requirements and within the scope of reducing risks all around the world. All of these procedures are included in Sanction Scanner products, and responsible entities in Barbados may simply comply with the existing rules using our AML solutions to comply with the local and global AML legislation. For further information, please get in touch with us and request a demo .
