Barbados’ Regulatory Requirements for Identity Verification and Due Diligence
In a move to strengthen anti-money laundering (AML) and know-your-customer (KYC) measures, the government of Barbados has introduced new regulations requiring businesses to verify the identity of their customers. According to the Money Laundering and Financing of Terrorism (Prevention and Control) Act, companies must take steps to mitigate risk before entering into an agreement or carrying out a financial transaction with another party.
Identity Verification Requirements
As part of these regulations, businesses must verify the identity of natural persons (individuals) using official documents. The required ID attributes for identity verification are:
- Name
- Nationality
- Address
In cases where individuals do not present themselves in person, identity verification can be performed through independent sourced documents that provide reasonable reliability to confirm identity.
Enhanced Due Diligence Measures
For high-risk customers, businesses may choose to utilize enhanced due diligence measures, including:
- Screening against watchlists of global regulatory authorities
- Foreign and domestic databases
- Compromised Politically Exposed Persons (PEPs)
- Sanctioned individuals
Shufti Pro, a leading AML Screening service provider, offers such services to help businesses comply with these regulations.
Third-Party Services
In cases where businesses choose to rely on third-party services for fulfilling AML/KYC obligations, they will remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
As per Barbados’ regulations, businesses are required to retain data for not less than five years. This includes all due diligence data collected from customers, which must be processed, collected, and managed by relevant third-party services or in-house systems.
Conclusion
The new regulations aim to strengthen AML and KYC measures in Barbados, ensuring a safer and more secure financial environment for businesses and individuals alike. By implementing these measures, companies can demonstrate their commitment to regulatory compliance and mitigate the risk of money laundering and terrorist financing.