Financial Crime World

Barbados Cracks Down on Financial Crimes: AML/CFT Reporting Obligations for Regulated Entities

Barbados’ Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime is strengthening its efforts to prevent money laundering, terrorist financing, and proliferation financing. The Financial Intelligence Unit (FIU) and the Anti-Money Laundering Authority (AMLA) are playing pivotal roles in enforcing regulatory compliance.

The Role of AMLA and FIU in Barbados

  • AMLA: The primary body responsible for monitoring and regulating Barbados’ financial institutions and Designated Non-Financial Businesses & Professions (DNFBPs).
  • FIU: Oversees the day-to-day operations of AMLA and provides analytical support and administrative assistance.

Reporting Obligations for Regulated Entities

Entities regulated under the Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23, must comply with the following reporting obligations:

Transaction Monitoring

  • Regularly review transactions for potential discrepancies based on customer information, possible commercial activities, risk profile, and the sources of their finances.

Record Retention

  • Keep records of transactions for at least 5 years.

Internal Policies and Procedures

  • Develop and implement internal policies and procedures to combat money laundering and terrorist financing.
  • Conduct regular audits and checks to ensure compliance.

Reporting Guidelines

  • Create internal reporting guidelines for employees.
  • Implement training programs to raise awareness about the laws and identifying suspicious transactions.

Regulated Reporting Obligations

Regulated entities must report specific subjects and transactions to the Director of FIU:

Suspicious Transactions

  • Any transactions involving stolen goods, terrorism support, suspicious activities or transactions, or individuals with counter-proliferation designation orders.

Currency Exchange or Transfer of Foreign Money

  • Reporting any currency exchange or transfer of foreign money exceeding US$10,000 entering or leaving Barbados.

Customs’ Role in Reporting

In certain situations, the Comptroller of Customs is responsible for handling the reporting of transfers involving physical currency, while reports for all other scenarios fall under the jurisdiction of the Director of the FIU.

Customs officers handling reports related to physical currency transfers are expected to forward them to the Director of the FIU.

Conclusion

Barbados’ AML/CFT regulations require regulated entities to be vigilant in monitoring and reporting potential financial crimes and suspicious transactions to the FIU for further investigation.