FATF Status

Barbados is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 23 February 2024

The FATF welcomes Barbados’ significant progress in improving its AML/CFT regime. Barbados strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2020, including (1) demonstrating it effectively applies risk-based supervision for FIs and DNFBPs; (2) taking appropriate measures to prevent legal persons and arrangements from being misused for criminal purposes, and ensuring that accurate updated beneficial ownership information is available on a timely basis; (3) increasing the capacity of the FIU to improve the quality of its financial information to further assist LEAs in investigating ML or TF; (4) demonstrating that money laundering investigations and prosecutions are in line with the country’s risk profile and reducing the backlog in the adjudication of criminal cases, in particular ML cases involving confiscation, and demonstrating the application of sanctions when appropriate; and (5) further pursuing confiscation in ML, including by seeking assistance from foreign counterparts. Barbados is therefore no longer subject to the FATF’s increased monitoring process.

Barbados should continue to work with CFATF to sustain its improvements in its AML/CFT system.

European Commission List of Countries with Strategic Deficiencies in their AML/CFT Regimes

On 14 March 2024, the European Commission (Commission) adopted a Delegated Regulation amending Delegated Regulation 2016/1675 as regards deleting Barbados from the EU Commission list of High Risk jurisdictions. It is expected that the deletion will come into force shortly.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Barbados was undertaken in February 2021. According to that Evaluation, Barbados was deemed Compliant for 6 and Largely Compliant for 27 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Barbados has laws against official corruption, but the Prevention of Corruption Act enacted in 2012 has not been put into effect. The Integrity of Public Life Bill was passed in 2023 but remains unproclaimed. The government plans to enhance transparency through a public investment dashboard and the establishment of an independent statistics authority, while also addressing past corruption cases, including the conviction of a former minister for money laundering.

The economy of Barbados is approximately $6.4 billion, making it the largest in the Eastern Caribbean. The country faces challenges such as supply-chain delays and rising consumer prices, but the International Monetary Fund forecasts a growth of 3.7% by the end of 2024. The services sector, particularly in tourism and international financial services, is seen as having the greatest potential for growth.

Barbados actively encourages foreign direct investment (FDI) through Invest Barbados, which promotes the country as a desirable investment location and provides support to both domestic and foreign investors. The government has identified key sectors for investment, including niche tourism, international financial services, information technology, and renewable energy, while maintaining an open legal framework that allows for foreign ownership of enterprises without restrictions. Additionally, Barbados has established a transparent regulatory system and offers various incentives to attract investments, particularly in emerging sectors.