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Central Bank of Barbados Issues New Guidelines for Anti-Money Laundering and Combating Terrorist Financing
The Central Bank of Barbados has issued new guidelines for anti-money laundering (AML) and combating terrorist financing (CFT) to ensure that financial institutions in the country comply with international standards.
New Guidelines Aim to Enhance Due Diligence and Risk Management
According to the new guidelines, financial institutions must apply customer due diligence (CDD) standards on a risk-sensitive basis depending on the type of customer, business relationship or transaction. This means that financial institutions will need to assess the level of risk posed by each customer and conduct enhanced due diligence measures for high-risk customers or transactions.
Key Requirements
- Conduct CDD on customers on a risk-sensitive basis
- Enhanced due diligence measures required for high-risk customers or transactions
- Identification and verification of customer identity, including beneficial owners
- Reliable data or information from an independent source required for business relationship purposes
- Monitoring of account activity throughout the life of the business relationship
- Review of existing records if there is a material change in how the account is operated
- Periodic reviews of risk categories as typologies evolve
Emphasis on Documentation and Record Keeping
The guidelines also require financial institutions to maintain accurate and up-to-date records of customer identification information, transaction details, and other relevant data. This will enable effective monitoring and reporting of suspicious transactions.
Benefits of the New Guidelines
“We are committed to ensuring that our financial system is not used for money laundering or terrorist financing,” said a spokesperson for the Central Bank of Barbados. “These new guidelines will help us to achieve this goal by providing a clear framework for financial institutions to follow.”
Effective Date and Scope
The guidelines come into effect immediately and apply to all financial institutions operating in Barbados.
Conclusion
The Central Bank of Barbados is committed to ensuring that the country’s financial system is not used for money laundering or terrorist financing. The new guidelines will help achieve this goal by providing a clear framework for financial institutions to follow, ensuring that they conduct robust due diligence and risk management practices.