Financial Crime World

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Barbados Takes a Stand Against Money Laundering and Terrorism Financing

In an effort to protect its financial system and uphold international standards, the government of Barbados has taken proactive measures to combat money laundering and terrorist financing. As a key transit point for illegal activities, the island nation is vulnerable to these threats, but its authorities are working tirelessly to ensure that financial institutions adhere to strict anti-money laundering regulations.

Anti-Terrorism Act and Money Laundering Regulations

At the heart of Barbados’ efforts is the Anti-Terrorism Act, enacted in 2002 to align with United Nations resolutions and international conventions. The country’s Money Laundering (Prevention and Control) Act, established in 1988, criminalizes money laundering, imposing severe penalties including up to $1 million USD and 25 years in prison.

Anti-Money Laundering Authority

The Anti-Money Laundering Authority, formed in 2000, serves as the Financial Intelligence Unit, overseeing compliance with anti-money laundering regulations. Financial institutions are required to:

  • Conduct stringent client verification
  • Record transactions exceeding $5,000 USD
  • Report suspicious activities through Suspicious Activity Reports (SARs)

Know Your Customer (KYC) Standards

To further strengthen its anti-money laundering framework, Barbados has implemented Know Your Customer (KYC) standards, verifying customer identities and contributing to the country’s expanding anti-money laundering system.

Central Bank of Barbados

The Central Bank of Barbados plays a crucial role in maintaining financial stability, fostering a robust financial structure, and promoting economic growth. Established in 1972, the bank has evolved significantly since its inception, with greater regulatory control over financial firms and enforcement powers.

Regulatory Network

To combat global threats related to money laundering, terrorism financing, and weapons proliferation, Barbados has established a network of regulators and regulations, including:

  • Central Bank
  • Anti-Money Laundering Authority
  • Financial Services Commission
  • Ministry of International Business and Industry
  • Corporate Affairs and Intellectual Property Office
  • Financial Intelligence Unit

Reinforced Framework

The country’s anti-money laundering framework is reinforced by various regulations, including:

  • Financial Institutions Act
  • Money Laundering and Terrorist Financing Act
  • Anti-Terrorism Act

Barbados has also initiated a national risk assessment to identify potential money laundering threats and weaknesses, with a focus on drug trafficking as the primary source of money laundering.

International Financial Services Industry

The island nation’s thriving international financial services industry underscores the importance of robust anti-money laundering measures. Sanction Scanner offers a suite of AML solutions to empower responsible entities in Barbados to seamlessly comply with local and global regulations.