Financial Crime World

Central Bank of Barbados Issues Anti-Money Laundering Guidelines

Introduction

The Central Bank of Barbados has issued new guidelines aimed at preventing money laundering and combating terrorist financing in the financial sector. The Anti-Money Laundering/Combating Terrorist Financing Guideline 2006:01 outlines measures to be taken by licensees to verify the identity of customers and account holders, update identification records, monitor account activity, and review existing records.

Requirements for Licensees

  • Verify the identity of customers or account holders at the outset of a business relationship using reasonable measures. This includes obtaining information on the ownership and control structure of the customer, as well as the purpose and intended nature of the business relationship.
  • Use enhanced due diligence procedures for high-risk customers or transactions, including:
    • Monitoring account activity throughout the life of the business relationship
    • Reviewing existing records if there is a material change in how the account is operated or if there are doubts about previously obtained customer identification data

Additional Requirements

  • Verify the identity of occasional transaction customers who conduct transactions below certain thresholds, which include:
    • Transactions exceeding BDS$10,000 (or its equivalent in foreign currency)
    • Wire transfers exceeding BDS$2,000 (or its equivalent in foreign currency)
    • All currency exchange transactions exceeding BDS$2000 (or its equivalent in foreign currency)

Reporting Requirements

  • Establish clear instructions for the timely reporting of unusual and suspicious occasional transactions
  • Report any unusual or suspicious transactions to the Financial Intelligence Unit

Key Points

  • The guideline is effective immediately, and all licensees are required to comply with its provisions.
  • The Central Bank of Barbados and the Anti-Money Laundering Authority issued the guidelines jointly.
  • The guidelines apply to all licensees operating in Barbados, including banks, financial institutions, and other financial services providers.

Conclusion

The Central Bank of Barbados has emphasized the importance of these guidelines in preventing money laundering and combating terrorist financing. “These measures are crucial in ensuring that our financial system remains safe and secure,” said a spokesperson for the bank.