Financial Crime World

Central Bank of Barbados: A Key Player in the Battle Against Money Laundering and Terrorism Financing

In today’s global financial landscape, money laundering, terrorism financing, and the proliferation of weapons of mass destruction pose significant threats. In response, financial sector regulators and institutions have strengthened their defenses to protect their jurisdictions from involvement in these illicit activities. The Central Bank of Barbados (CBB) plays a vital role in this global effort.

The Central Bank of Barbados: Upholding the Integrity of the Financial System

As the primary supervisory and regulatory agency for financial institutions licensed under the Financial Institutions Act, Cap. 324A (FIA), the Central Bank of Barbados (CBB) is tasked with:

  1. Assessing the adequacy of AML/CFT frameworks
  2. Ensuring compliance with relevant legislation

The CBB’s regulatory purview encompasses key statutes, including:

Primary AML/CFT Legislation

  • The Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 (MLFTA)
  • The Money Laundering and Financing of Terrorism (Prevention and Control) Amendment Act, 2019-22 (MLFTAA)

Counter-Terrorism Legislation

  • The Anti-Terrorism Act, Cap. 158 (ATA)
  • The Anti-Terrorism (Amendment) Act, 2019 (ATAA)

By enforcing stringent Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) policies and guidelines, the Central Bank of Barbados fortifies financial institutions against money laundering and terrorism financing. This collective action preserves the integrity of Barbados’s financial system while contributing to the broader global effort against these insidious activities.

Key Legislation Under the CBB’s Enforcement Umbrella

Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 (MLFTA)

The MLFTA establishes the necessary framework for combating money laundering and terrorism financing in Barbados. This legislation:

  • Defines money laundering and related terms
  • Requires financial institutions to develop and implement AML/CFT policies and procedures
  • Imposes record-keeping and reporting requirements
  • Grants investigatory powers to the Financial Intelligence Unit (FIU)

Money Laundering and Financing of Terrorism (Prevention and Control) Amendment Act, 2019-22 (MLFTAA)

The MLFTAA updated the MLFTA to address evolving threats in the financial sector. Key changes include:

  • Expanded reporting requirements for Designated Non-Financial Businesses and Professions (DNFBPs)
  • Enhancements to customer due diligence procedures
  • Establishment of a risk-based approach to AML/CFT controls

Anti-Terrorism Act, Cap. 158 (ATA)

The ATA outlines measures to counter terrorism financing in Barbados, which can include:

  • Criminalizing the provision and collection of funds for terrorist activities
  • Freezing and seizing assets suspected of being involved in terrorism financing
  • Establishing a national Counter-Terrorism Committee to coordinate efforts

Anti-Terrorism (Amendment) Act, 2019 (ATAA)

The ATAA updated the ATA to ensure it remains effective against emerging threats. Notable additions include:

  • Expanded definitions of terrorism offenses
  • Increased powers for law enforcement and financial intelligence units
  • provisions for foreign terrorist organizations and their supporters

As the primary supervisory and regulatory agency for institutions under the Financial Institutions Act, the Central Bank of Barbados continues to play a pivotal role in protecting Barbados’s financial system from money laundering and terrorism financing. Through its strategic implementation of stringent AML/CFT policies and guidelines, the CBB ensures Barbados remains a trusted jurisdiction in the global fight against these insidious activities.