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Compliance Regulations Banking in Barbados: A Model for Responsible Financial Centre

The island nation of Barbados has established itself as a responsible and competitive player in the global financial services sector, contributing significantly to its economy despite being a relatively small participant. As the seventh largest domicile for captive insurance companies worldwide, Barbados relies heavily on the expertise of its experienced professionals and management teams.

Barbados’ Commitment to Regulatory Compliance

According to Derrick Cummins, CEO of Amicorp Barbados and Immediate Past President of BIBA - The Association for Global Business, “We are a proud people for whom reputation is everything. That is why we support the efforts of our government and regulators to ensure that we are removed from any adverse lists which impact our industry’s expansion.”

Whole-of-Country Approach to Regulatory Compliance

Barbados has taken a whole-of-country approach to protect and ensure the sustainability of its international financial services sector, prioritizing compliance with global standards set by the Financial Action Task Force (FATF), the OECD, and other regulatory bodies. Recent updates from key regulators presented at a Global Business Industry Update hosted by Invest Barbados and BIBA highlight the island’s commitment to regulatory compliance.

Key Regulatory Updates

  • The country has expanded the list of entities permitted to hold foreign currency accounts under the Financial Institutions Act.
  • Economic substance reporting for no-tax and nominal tax jurisdictions has been introduced.
  • The Beneficial Ownership Register is currently in development, aiming to ensure that competent authorities and law enforcement agencies have timely access to accurate beneficial ownership information for all legal persons in Barbados.

Barbados’ Regulatory Stance

The Central Bank of Barbados has proactively addressed some of the items in the FATF/Barbados approved Action Plan ahead of agreed timelines, resulting in a regulatory upgrade in the June 2022 reporting cycle. The Bank Supervision Director, Cheryl Greenidge, noted that Barbados’ regulatory stance is focused on sustained, robust representation made around context, materiality, and FATF processes.

Encouraging Voluntary Compliance

The Barbados Revenue Authority (BRA) has encouraged voluntary compliance by providing information on foreign tax compliance account obligations. The BRA is also pursuing actions to determine non-compliance and issue notification of planned audits.

Unwavering Commitment to Compliance

Prime Minister Mia Mottley has reiterated Barbados’ unwavering commitment to the highest standards of operation in the global financial space, emphasizing that the country is “unflinching” in its support of international efforts to stop money laundering and the financing of terrorism.

Learn More

To learn more about Barbados’ welcoming investment climate, visit www.investbarbados.org.