BARBADOS

7. Other Relevant Matters

Anti-money Laundering Rules

The Barbados regulatory anti-money laundering controls are found in Money Laundering (Prevention and Control) Act 1998 and (Amendment) Act 2001-32 (MLA) and in the Guidelines for the Detection and Prevention of Money Laundering in Barbados (Guidelines). These Guidelines follow the recommendations of the Financial Action Task Force on Money Laundering (FATF).

The MLA confers responsibility for the supervision of financial institutions to the Anti-money Laundering Authority, which was officially established in 2000. The establishment of a mandatory threshold of BBD10,000 (or its equivalent in foreign currency) for the retention of business transaction records is intended to help identify money launderers.

The Guidelines are comprehensive and are applicable not only to financial institutions but also to a wide range of service providers. The purpose of the Guidelines is to preserve the viability and reputation of the Barbados financial sector; service providers must be vigilant in guarding against money laundering. The Guidelines identified that one of the most effective ways to combat money laundering is sound knowledge of a client's business and the pattern of the client's financial transactions and commitments.

The main concepts of the 'know your client' rules are:

  • identification procedures and monitoring
  • reporting of suspicious transactions (allied to adequate record keeping) and,
  • controls and communication (allied to training and awareness).

Barbados has fulfilled the requirements of the 1988UN Convention Against Illicit Traffic in Narcotics Drugs and Psychotropic Substances ('1988 Vienna Convention') by the enactment of the Drug Abuse (Prevention and Control) Act 1990, the Proceeds of Crime Act 1990, and the Mutual Assistance in Criminal Matters Act 1992.


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