Financial Crime World

Title: Barbados’ Commitment to Combating Money Laundering and Terrorist Financing: A CFATF Assessment

Overview

Barbados, known as the gem of the Caribbean, has been recognized for its efforts to combat Money Laundering (ML) and Terrorist Financing (TF) following an assessment by the Caribbean Financial Action Task Force (CFATF). Although Barbados’ inherent ML and TF risks were deemed low, the report highlighted underlying vulnerabilities that need to be addressed.

CFATF’s Evaluation and Findings

The CFATF report, “National Risk Assessment (NRA) of Barbados,” identified sectors with inherent vulnerabilities to ML and TF. These sectors included:

  1. Financial Institutions
  2. Designated Non-Financial Businesses and Professions (DNFBPs)

Financial Institutions

Barbados’ strong economy and international business sector—a significant contributor to its economic growth—made it an attractive target for criminals. The presence of international banks, commercial operations, and other financial institutions accounted for over 70% of the rated sectors’ vulnerabilities.

DNFBPs

DNFBPs, such as lawyers, corporate and trust service providers, long-term insurers, and real estate businesses, accounted for nearly half of the sector-specific vulnerabilities.

Barbados’ Response and Action Plan

To mitigate these risks, Barbados has taken steps to update its legislative framework and implement a comprehensive National Action Plan (NAP).

Legislation

Some of the key legislative measures taken in recent years include:

  1. Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011, as amended in 2019
  2. Proceeds and Instrumentalities of Crime Act, 2019
  3. Trafficking Victims Protection Act

Enforcement Agencies

The Financial Services Commission, Financial Intelligence Unit, and other relevant agencies have been given more robust mandates and resources to effectively supervise and enforce AML/CFT regulations.

Ongoing Challenges and Future Plans

Despite these efforts, Barbados faces ongoing challenges, including keeping up with evolving threats and staying informed about best practices. The country plans to conduct regular NRAs every two years to reassess inherent risks and update mitigation measures accordingly.

Minister’s Statement

“Barbados remains committed to the global effort to prevent ML, TF, and the financing of weapons of mass destruction,” said Dale Marshall, Q.C., M.P., the Attorney General and Minister of Legal Affairs, commenting on the assessment results. “We remain confident in our ability to protect our financial sector and our citizens from the harmful effects of financial crimes.”

Collaboration and Best Practices

In its efforts to strengthen its financial regulatory framework, Barbados will continue to collaborate with international partners and regulators and engage in international best practices to keep pace with the ever-evolving threat landscape.