Financial Crime World

Title: Barbados Cracks Down on Money Laundering and Terrorist Financing: FSC’s Role and Latest Guidelines

Background

Barbados, a Caribbean nation, has taken significant strides to strengthen its regulatory framework against money laundering, terrorism financing, and proliferation financing. The Financial Services Commission (FSC) plays a pivotal role in achieving these goals as the primary regulatory body overseeing financial institutions (FIs) and ensuring compliance with anti-money laundering and anti-terrorist financing (AML/CFT) regulations.

International Collaboration

As part of its global mission, the FSC collaborates with regional organizations like the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF). Through these collaborations, they exchange best practices, share knowledge, and foster more robust AML/CFT regimes among member countries.

FIs’ Obligations

FIs operating under the purview of the FSC are obligated to implement rigorous measures to prevent illicit funds from flowing through the Barbadian financial system. Some of these measures include:

  • A robust customer due diligence process to confirm customers and beneficial owners’ identities.
  • Routine account reviews.
  • Closely monitoring transactions and reporting any suspicious activities as required.

FSC Guidelines and Sector-Specific FATF Guidance

Financial institutions are encouraged to regularly consult the FSC’s AML/CFT Guidelines and Reminders for best practices and the latest developments. Additionally, sector-specific FATF Guidance can be beneficial for FIs in assessing the effectiveness of their AML/CFT infrastructure. Developed in partnership with industry experts, this Guidance represents the collective knowledge and expertise of the private sector.

Essential Legislation and Guidelines

Some essential pieces of legislation and guidelines related to combatting money laundering and terrorist financing in Barbados are:

LEGISLATION

  1. Anti-Terrorism Act Cap 158
  2. Money Laundering & Financing of Terrorism (Prevention & Control) Act
  3. Money Laundering & Financing of Terrorism (Prevention & Control) Amendment
  4. Barbados’ Targeted Financial Sanctions Omnibus Guidelines (November 2019)

REPORTING FORM

  • Reporting Form - Suspicious / Unusual Transaction Report [Amended May 2020]