Barbados’ Financial System Braces Against Money Laundering, Terrorism Financing with FSC Guidelines

The Barbados Financial Services Commission (FSC) is taking proactive measures to ensure the financial system of Barbados adheres to anti-money laundering (AML) and anti-terrorist financing (ATF) regulations. Following global and regional initiatives, the FSC is actively participating in the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF).

Obligations for Barbados-Regulated Financial Institutions (FIs)

FIs supervised by the FSC must implement robust systems to prevent the flow of illicit funds through the island nation’s financial system. Some of the essential measures include:

1. Customer Due Diligence: Identify and verify the identities of customers and, if applicable, their beneficial owners.
2. Regular Account Reviews: Review clients’ transactions and account activity for indicators of suspicious behavior.
3. Transaction Monitoring and Reporting: Institutions should closely monitor their transactions and report any deemed suspicious or unusual to the relevant authorities using the Reporting Form – Suspicious / Unusual Transaction Report.

Up-to-date Information and Best Practices

Financial institutions are encouraged to consult the FSC’s AML/CFT Guidelines and Reminders for the latest information and best practices concerning their responsibilities. Additionally, sector-specific FATF Guidance can be referenced for enhanced frameworks.

Key Legislation

Some of the essential legislation governing AML/CFT in Barbados are:

• The Anti-Terrorism Act Cap 158
• Money Laundering & Financing of Terrorism (Prevention & Control) Act
• Money Laundering & Financing of Terrorism (Prevention & Control) Amendment

Specialized Measures Against Terrorist and Proliferation Activities Financing

Beyond the broader regulatory landscape, Barbados’ Targeted Financial Sanctions Omnibus Guidelines outline specialized measures designed to counteract the financing of terrorist and proliferation activities.

Relevant Resources

For comprehensive information regarding AML/CFT requirements, reporting procedures, and legal resources, please refer to the following documents:

Legislation:

• Anti-Terrorism Act Cap 158
• Money Laundering & Financing of Terrorism (Prevention & Control) Act
• Money Laundering & Financing of Terrorism (Prevention & Control) Amendment

Guidelines and Forms:

• Barbados’ Targeted Financial Sanctions Omnibus Guidelines (November 2019)
• Reporting Form – Suspicious / Unusual Transaction Report (May 2020)