Barbados Fails to Meet International Standards on Anti-Money Laundering and Combating the Financing of Terrorism

Barbados’ Efforts Criticized by Financial Action Task Force (FATF)

Bridgetown, Barbados - A report released yesterday has criticized Barbados’ efforts to combat money laundering and the financing of terrorism (ML/TF), citing significant gaps in its legal framework and enforcement mechanisms.

Assessment Highlights Deficiencies

The assessment, conducted by the FATF, found that while Barbados has made progress in improving its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime since the last evaluation, it still fails to meet international standards. The report highlighted several key deficiencies:

• Lack of Domestic Law: Barbados lacks a domestic law to implement the UN Convention on the Proliferation of Weapons of Mass Destruction (WMD), creating a significant gap in its legal framework and hindering efforts to combat WMD proliferation.
• Limited Confiscation and Asset Forfeiture Laws: The country’s current regime is limited and only applies to money laundering cases. Authorities have acknowledged this deficiency and plan to promulgate the Proceeds and Instrumentalities of Crime Bill, which will strengthen the legal framework for seizures, confiscation, and asset forfeiture.
• Ineffective Coordination: There is a lack of effective coordination between law enforcement agencies and financial institutions in Barbados, leading to a low overall level of effectiveness in combating ML/TF. The report noted that the country’s Financial Intelligence Unit (FIU) lacks the necessary resources and authority to effectively monitor and analyze suspicious transactions.
• Limited Mechanisms for Investigating and Prosecuting Terrorist Financing: While Barbados has a functional legal framework for domestic money laundering investigations, there are limited mechanisms in place to investigate and prosecute cases of terrorist financing. Authorities have been advised to strengthen their institutional framework and improve coordination between agencies to address this vulnerability.

Government Pledges Immediate Action

In response to the report’s findings, the Government of Barbados has pledged to take immediate action to address the deficiencies identified and ensure that its anti-money laundering and combating the financing of terrorism regime meets international standards.