Financial Crime World

Barbados KYC Regulations: A Comprehensive Overview of Identity Verification Requirements

Barbados, known as a leading financial hub in the Caribbean, has established rigorous Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. In this article, we provide a comprehensive overview of the identity verification requirements under the Barbados KYC regulations.

1. Background

The Money Laundering and Financing Of Terrorism (Prevention and Control) Act outlines the necessary procedures for AML and Know Your Customer (KYC) processes in Barbados. Let’s explore the essential identity verification measures mandated by the Central Bank of Barbados, Barbados Financial Services Commission, Financial Intelligence Unit (Barbados), and Barbados’ Money Laundering and Financing Of Terrorism (Prevention and Control) Act and its amendments.

2. Scope: Barbados KYC Regulations & Identity Verification

In this section, we clarify the terms and scope of the Barbados KYC regulations concerning identity verification.

  • Client: Our company’s customer subjected to KYC-AML checks.
  • End-user: The Client’s customer from our perspective.
  • Proof of Identity: An official government-issued document identifying an individual (natural person), such as an Identity Card, Passport, or Driving License.
  • Enhanced Due Diligence (EDD): A process to investigate potential business relationships more thoroughly.
  • Third-Party Diligence: Outsourcing due diligence to external parties.
  • Politically Exposed Person (PEP): An individual with increased risk for corruption and bribery.

3. Identity Verification Requirements

The Barbados KYC regulations mandate specific ID attributes to identify natural persons, including:

  1. Name
  2. Nationality
  3. Address

4. Compliant CDD Methods – Identity Verification

Shufti Pro offers identity verification solutions on behalf of our clients, including:

  • Remote Verification: Using independent, source documents when an End-user is not physically present.
  • Document Verification: Specializing in checks on security features and document expiration.

5. Document Requirements

Identity Verification

Identity Verification can be applied using the following documents as proof of identity in Barbados:

  • Identity Card
  • Passport
  • Driving License

Address Verification

For proof of address, the following documents are accepted in Barbados:

  • Current utility bills (no older than 3 months)
  • Government department-issued document
  • Bank statement not older than 3 months

6. Timing and PEPs

Timing

Identity Verification is not a one-time procedure but an ongoing process. Our clients can pursue Identity Verification whenever necessary based on their requirements. Main instances for employing Identity Verification include onboarding new Customers, transaction data processing, and dealing with Customers associated with higher risks.

PEPs and EDD Measures

In the absence of explicit regulations, clients can implement Enhanced Due Diligence (EDD) measures for high-risk End-users. Shufti Pro offers an AML Screening service to screen an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

7. Third-Party Reliance and Record Retention

  • Third-Party Reliance: Clients are allowed to seek assistance from third parties in fulfilling their AML/KYC obligations while remaining solely responsible for regulatory compliance.
  • Record Retention: As per the Barbados KYC regulations, data must be retained for at least five years. In the case of data being processed, collected, and managed by a relevant third party, our clients are required to collect all necessary Due Diligence Data from the third party without unnecessary delay.