Barbados still on grey list

Even after intense efforts to respond to areas of concern flagged by the Financial Action Task Force (FATF), Barbados has failed to convince the grouping that the island should be removed from the “grey list” for Anti-money Laundering and Countering the Financing of Terrorism (AML/CFT).

In a statement issued from its Berlin, Germany base, global money laundering and terrorist financing watchdog, the FATF announced it was keeping Barbados on the list of countries that will be under “increased monitoring”, though the country was working with the FATF to address strategic deficiencies in its “regimes to counter money laundering”.

While the agency praised the work of local authorities to monitor and prevent these financial crimes, the FATF wants Barbados to do even more and to act swiftly.

The FATF is a global regulator whose ratings could seriously impact a country’s ability to operate in the global financial space and attract international business. The listing of Barbados also poses a threat to the island’s vital international business sector.

However, grey-listed countries have committed to resolving swiftly, the identified strategic deficiencies within agreed timeframes.

Barbados had its progress reviewed in March after intense lobbying and the FATF said since the start of the COVID-19 pandemic, the agency gave “some flexibility” to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. Barbados was among this group.

In its statement the FATF praised the island but flagged four “strategic” areas it wanted Barbados to address promptly, cautioning local authorities the timelines for action had run out.

According to the statement: “Since February 2020, when Barbados made a high-level political commitment to work with the FATF and [Caribbean Financial Action Task Force] to strengthen the effectiveness of its AML/CFT regime, Barbados has taken steps towards improving its AML/CFT regime, including by establishing and resourcing a new compliance unit under its AML Authority responsible for [Designated Non-Financial Business and Professions] supervision; demonstrating that authorities have access to the [beneficial ownership] information regarding legal arrangements; and reducing the backlog of criminal cases, including [money laundering] prosecutions.”

At the same time, the FATF urged Barbados to continue to work on implementing its action plan to address its strategic deficiencies by taking “appropriate measures” to prevent legal persons and arrangements from being misused for criminal purposes and ensuring that accurate and up-to-date basic and beneficial ownership information is available on a timely basis and  by ensuring its Financial Intelligence Unit’s financial intelligence products further assist law enforcement authorities in investigating money laundering or terrorist financing.

FATF said the country must also demonstrate that money laundering investigations and prosecutions are in line with the country’s risk profile and result in sanctions, when appropriate, and provide statistics or case studies demonstrating a reduction of any backlog of cases as well as further pursue confiscation in money laundering cases, including by seeking assistance from foreign counterparts.

The FATF also encouraged Barbados to continue to implement its action plan to address the suggested strategic deficiencies as soon as possible “as all deadlines have now expired”.

Other Caribbean nations on the FATF anti-money laundering grey list are Jamaica, Haiti, and the Cayman Islands.

Barbados is expected to shortly have an on-site visit regarding its submissions to the FATF. (IMC1)