Financial Crime World

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Barbados: A Well-Regulated Jurisdiction for Global Business

The Barbadian financial sector has long been known for its stability, thanks to the country’s commitment to upholding international standards and a strong regulatory framework. The Central Bank of Barbados, established in 1972, provides supervision and ensures the stability of the financial system. In 2011, the government further strengthened oversight by creating the Financial Services Commission (FSC), which regulates non-banking financial services such as insurance companies, credit unions, pensions, securities, and more.

Regulatory Framework

The country’s robust regulatory framework is built on clear and effective legislation that provides stringent guidelines for good governance, enforced by regulators in each sector. Barbados’ adherence to international best practices has earned it a reputation as a reliable destination for global businesses.

Attracting Foreign Direct Investment

In recent years, Barbados has seen significant foreign direct investment, particularly from Canada and the US. The country’s reputation as a reputable and sound jurisdiction has attracted millions of dollars in investment over the decades.

Professional Service Providers

To support business objectives and growth, Barbados offers a range of professional service providers, including:

  • Corporate and trust service providers
  • Tax advisors
  • Lawyers
  • Chartered accountants
  • Real estate agencies
  • Consultants

These qualified professionals can assist with navigating regulatory requirements to set up a structure that meets strategic and financial goals.

Business Environment

Barbados’ stable political environment, growing economy, and business associations such as the Barbados International Business Association (BIBA) provide opportunities for networking and collaboration across various sectors.

Regulatory Updates

In recent years, there have been numerous updates to legislation and guidelines in the regulatory compliance space. These include:

  • Companies (Amendment) Act, 2019
  • Barbados Companies (Economic Substance) Act, 2019
  • Corporate and Trust Service Providers (Amendment) Act, 2019

These changes demonstrate the continuous strengthening of the broader regulatory regime in Barbados, with a specific aim to adhere to international standards set by organizations such as the Financial Action Task Force (FATF) and the Organisation for Economic Cooperation and Development (OECD).

OECD’s Two-Pillar Plan

Barbados has recently joined the OECD’s two-pillar plan to reform international taxation rules. Pillar One aims to ensure a fairer distribution of profits and taxing rights among countries, while Pillar Two seeks to introduce a global minimum corporate tax rate.

Why Barbados is an Attractive Option

With its well-regulated jurisdiction, Barbados is an attractive option for businesses looking to establish operations in the region. The country offers:

  • A large base of professionals to assist with various business aspects
  • Substantive business management on the ground
  • Direct flight options from major hubs such as London, New York, Toronto, and Miami
  • Time zone alignment with New York and Toronto makes it an ideal location for international businesses

As managing director of Smith Compliance Consulting Inc. in Barbados, Glenna Smith has gained extensive knowledge in financial crime, compliance, operational risk, and corporate governance during her 30-year career in financial services. She is a regular presenter at regional and international conferences and authors articles on various topics.