Financial Crime World

Banks and Financial Institutions Urged to Strengthen Anti-Money Laundering and Combating Terrorist Financing Efforts

Revised Guidelines Issued for Effective Implementation

The Central Bank of Barbados and the Anti-Money Launderling Authority (AMLA) have issued a revised guideline for financial institutions and designated non-financial businesses and professions (DNFBPs) on anti-money laundering (AML) and combating terrorist financing (CFT).

Importance of Effective AML/CFT Programs

The guideline emphasizes the importance of implementing effective AML/CFT programs to prevent the misuse of financial systems for illegal activities. Financial institutions are required to take reasonable steps to implement or apply procedures to control or combat money laundering, as outlined in the Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23.

Key Areas of Focus

The guideline highlights several key areas that financial institutions must address:

  • Receiving and Analyzing Suspicious Transactions Reports: Financial institutions and DNFBPs are required to receive and analyze suspicious transactions reports.
  • Training on Record Keeping and Reporting Requirements: Financial institutions and DNFBPs are required to provide training on record keeping and reporting requirements.
  • Group-Wide AML/CFT Programs: Parent companies and financial holding companies with branches and subsidiaries must implement group-wide AML/CFT programs.
  • Adequate Safeguards for Confidentiality and Use of Information Exchanged: Financial institutions must ensure adequate safeguards on the confidentiality and use of information exchanged.

Board-Level Oversight and Senior Management Commitment

The guideline emphasizes the importance of board-level oversight and senior management commitment to effective AML/CFT programs. Directors are required to:

  • Demonstrate their commitment by understanding statutory duties
  • Approve AML/CFT policies and procedures
  • Seek assurance that the institution is in compliance with its statutory responsibilities

Senior management is responsible for developing sound risk management programs and keeping directors adequately informed about these programs and their effectiveness.

Implementation and Compliance

The revised guideline comes into effect immediately and applies to all financial institutions and DNFBPs operating in Barbados. Failure to comply with the guidelines may result in significant penalties, including fines and imprisonment.

Call to Action

“We urge all financial institutions and DNFBPs to take this revised guideline seriously and implement effective AML/CFT programs to prevent money laundering and terrorist financing,” said a spokesperson for the Central Bank of Barbados and AMLA. “The safety and integrity of our financial system depends on it.”