Barbados Strengthens Anti-Money Laundering and Combating Terrorism Efforts with New Guidelines
Introduction
The Central Bank of Barbados has issued revised guidelines to enhance the island’s efforts in preventing money laundering and combating terrorism (AML/CFT). The new guidelines aim to strengthen financial institutions’ compliance with international standards and regulations.
AML/CFT Guideline
The AML/CFT Guideline outlines the responsibilities of financial institutions, including banks, insurance companies, and other regulated entities, to prevent and detect money laundering and terrorist financing activities. The guideline emphasizes the importance of effective risk management practices, regular monitoring, and reporting suspicious transactions to the Financial Intelligence Unit (FIU).
Responsibilities of Financial Institutions
Financial institutions must establish an effective AML/CFT program that includes policies, procedures, and controls to prevent money laundering and terrorist financing. This program must be regularly reviewed and updated to ensure compliance with international standards and regulations.
- Establish an effective AML/CFT program
- Regularly review and update the program
- Prevent money laundering and terrorist financing activities
Financial Intelligence Unit (FIU)
The FIU, established as the office of the Anti-Money Laundering Authority (AMLA), plays a critical role in receiving suspicious transaction reports from financial institutions, analyzing these reports, and sharing information with relevant authorities.
Group-Wide AML/CFT Programs
Revised guidelines also emphasize the importance of group-wide AML/CFT programs for parent companies or financial holding companies with subsidiaries. These programs must include policies and procedures for sharing information required for customer due diligence (CDD) and ML/FT risk management.
- Establish a group-wide AML/CFT program
- Share information for CDD and ML/FT risk management
Responsibility of Directors and Senior Management
Directors and senior management are responsible for ensuring that their institutions’ AML/CFT programs are effective, and they must demonstrate their commitment to these efforts by understanding statutory duties, approving AML/CFT policies and procedures, and seeking assurance that the institution is in compliance with its statutory responsibilities.
- Ensure effectiveness of AML/CFT program
- Understand statutory duties
- Approve AML/CFT policies and procedures
Conclusion
The revised guidelines are designed to strengthen Barbados’ AML/CFT framework and enhance international cooperation in combating money laundering and terrorist financing. The Central Bank of Barbados and the Anti-Money Laundering Authority will closely monitor institutions’ compliance with these guidelines to ensure that they are effective in preventing and detecting money laundering and terrorist financing activities.
Key Takeaways
- Revised AML/CFT guidelines issued by the Central Bank of Barbados and the Anti-Money Laundering Authority.
- Financial institutions must establish effective AML/CFT programs to prevent and detect money laundering and terrorist financing activities.
- Group-wide AML/CFT programs required for parent companies or financial holding companies with subsidiaries.
- Directors and senior management responsible for ensuring compliance with statutory responsibilities.
- Close monitoring of institutions’ compliance with guidelines by the Central Bank of Barbados and the Anti-Money Laundering Authority.