Financial Crime World

Title: Barbados Cracks Down on Money Laundering: A Look at the Island’s Legal Framework and Proactive Measures

Money laundering remains a significant concern for Barbados, serving as a transit point for illicit activities. The government of Barbados has instituted rigorous measures to prevent money laundering and terrorist financing.

  • Anti-Terrorism Act (2002) aligns Barbados with UN resolutions on suppressing terrorist financing.
  • Money Laundering (Prevention and Control) Act (MLPCA) (1988) criminalizes money laundering with a maximum penalty of $1 million USD and 25 years in prison.
  • Anti-Money Laundering Authority (AMLA) was formed in 2000 to serve as the country’s Financial Intelligence Unit (FIU).

Compliance Measures

Financial institutions in Barbados adhere to stringent client verification policies and document transactions above $5,000 USD. They are also mandated to submit Suspicious Activity Reports (SARs) to the AMLA for any unusually large or suspicious transactions.

  • Know Your Customer (KYC) standards have been established to verify customer identities, forming a crucial component of Barbados’ expanding anti-money laundering measures.

Role of the Central Bank of Barbados

The Central Bank of Barbados, based in Bridgetown, plays a vital role in maintaining financial stability, fostering a strong financial structure, and promoting productive investments.

  • Originally, financial regulation was overseen by the East Caribbean Currency Authority (ECCA), which lacked effective regulatory control over financial firms.

AML Regulators and Regulations

To tackle the global threats of money laundering, terrorism financing, and weapons proliferation, Barbados has established a network of regulators and regulations.

  • CBB, AMLA, Financial Services Commission (FSC), Ministry of International Business and Industry’s International Business Unit (IBU), Corporate Affairs and Intellectual Property Office (CAIPO), FIU, and various acts such as:
    • Financial Institutions Act
    • Money Laundering and Terrorist Financing Act
    • Money Laundering and Terrorist Financing Amendment Act
    • Anti-Terrorism Act
    • 2019 Anti-Terrorism (Amendment) Act

Barbados’ Anti-Money Laundering Efforts

Barbados is presently conducting a comprehensive national risk assessment to identify and mitigate potential money laundering threats. Drug trafficking has been identified as the primary source in the initial assessment.

Thriving Financial Services Industry

Barbados’ vibrant international financial services sector underscores the importance of robust anti-money laundering measures. Sanction Scanner offers a range of AML solutions to help Barbados-based entities comply with local and global AML regulations.

  • KYC
  • Customer Due Diligence
  • Transaction Screening
  • Transaction Monitoring