|
|
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Barbados is a major offshore center with a large international
business company (IBC) presence. The country is vulnerable to
money laundering, which primarily occurs in the formal banking
system. Domestically, money laundering is largely drug-related
and appears to be derived from the trafficking of cocaine and
marijuana, as Barbados is a transit country for illicit narcotics.
There is also evidence of Barbados being exploited in the layering
stage of money laundering with funds originating abroad. The
major source of these funds appears to be connected to fraud.
As of November 2010, there are six commercial banks in
Barbados. The offshore sector includes 2,643 IBCs, 161 exempt
insurance companies and 76 qualified exempt insurance
companies, ten mutual fund companies and one exempt mutual
fund company, nine trust companies, five finance companies and
53 offshore banks. There are no free trade zones and no
domestic or offshore casinos. Offshore banks are subject to the
same supervision as domestic banks. Additionally, permission
must be obtained from the Central Bank to move currency abroad.
IBCs are subject to enhanced due diligence requirements for IBC
license applications and renewals. Bearer shares are not
permitted, and financial statements of IBCs are audited if total
assets exceed $500,000.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, notaries, gaming centers, and securities dealers
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Barbados is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.cfatf-gafic.
org/downloadables/mer/Barbados_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The GOB should be more aggressive in conducting examinations
of the financial sector and maintaining strict control over vetting
and licensing of offshore entities. The GOB should devote
sufficient resources to ensure the FIU, law enforcement,
supervisory agencies, and prosecutorial authorities are properly
staffed and have the capacity to perform their duties. The GOB
should amend its legislation to allow for the seizure of suspected
illegal funds at the border and to allow the freezing of funds or
assets linked to terrorism or terrorist financing. Barbados should
consider the adoption of civil forfeiture and asset sharing
legislation. Supervision of nonprofit organizations, charities,
DNFBPs, and money transfer services should be strengthened,
as should information sharing between regulatory and
enforcement agencies. Finally, to further enhance its legal
framework against money laundering, Barbados should move
expeditiously to become a party to the UN Convention against
Transnational Organized Crime and the UN Convention against
Corruption.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Royal Barbados Police Force (RBPF) has a drug squad that
is guided by the Barbados National Anti-Drug Plan. The National
Plan outlines the policies, goals, strategies and legislation to
combat narcotics trafficking. The government says it is
considering updating the plan in 2012. The drug squad focuses
on major traffickers and is the focal point for international
cooperation. It works closely with the Regional Security Systems
(RSS) Air Wing, the RBPF Marine Unit, and the Barbados Coast
Guard.
Barbados has a coastal radar system (Inter Coastal Surveillance
Systems Radar) that has yet to achieve 360-degree coverage of
the island. RSS aircraft, the RBPF Marine Unit patrol vessel, and
the Barbados Coast Guard patrol vessels are the main
enforcement assets used by law enforcement to monitor seaborne
illegal narcotics movements.
The government introduced no new legislation or additional
funding to assist drug enforcement during 2011. Legislation
requires record keeping on precursor chemicals and the
importation of pseudoephredrine, ephedrine and pharmaceutical
products containing those two chemicals. Sustained high
unemployment has brought new players into drug trafficking,
according to police officials.
Barbados is a party to the three UN Drug Conventions. Barbados
has signed, but not yet ratified, the UN Convention against
Transnational Organized Crime and its three Protocols, and the
UN Convention against Corruption. Although Barbados has not
signed the Inter-American Convention on Extradition or the Inter-
American Convention on Mutual Assistance in Criminal Matters, its
Mutual Assistance in Criminal Matters Act allows it to provide
mutual legal assistance to countries with which it has a bilateral
mutual legal assistance treaty, Commonwealth countries, and
state-parties to the 1988 UN Drug Convention. Barbados is a
party to the Inter-American Firearms Convention. Lastly, Barbados
has a comprehensive maritime counterdrug bilateral agreement
(excluding ship rider provision), an extradition treaty and a Mutual
Legal Assistance Treaty in force with the U.S.
Law enforcement officials report an increasing number of drug
couriers arriving via air, notably on flights from Jamaica,
smuggling drugs in their stomachs. On a single flight in August,
ten passengers were found to have swallowed drugs. In 2011,
cannabis was the only drug found under cultivation. Police seized
16,121 plants, mostly during eradication. They do not measure
acreage. As in 2010, police encountered no drug laboratories.
From January 1 until October 13, total drug seizures in Barbados
were: 5 metric tons (MT) of cannabis; 64 kg of cocaine and one
ecstasy tablet, seized from an incoming air passenger. Eighty
nine percent of total cannabis seizures and ten percent of total
cocaine seizures were made at sea. In 2011, 186 persons were
arrested and prosecuted for drug related offenses. Statistics on
convictions were not available as of November. Five major drug
traffickers were prosecuted during 2011.
Barbados has the Drug Abuse and Resistance program in
schools. There are other drug demand reduction programs
sponsored by the National Council on Substance Abuse and the
National Committee for the Prevention of Alcoholism and Drug
Dependency. Police contacts assess these entities need to revise
their strategy, pointing to continued high levels of cannabis
consumption among the populations and increased youth drug.
There are four drug rehabilitation clinics in Barbados, one of
which is specifically for youth.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Barbados is a source and destination country for men, women,
and children subjected to sex trafficking and forced labor. In a
welcomed move over the last year, officials spoke more openly
about the likely profile of human trafficking in Barbados, which is
similar to those of other countries in the region. Evidence
suggests there are foreign women forced into prostitution in
Barbados. Legal and illegal immigrants from Jamaica, the
Dominican Republic, and Guyana appear to be the most
vulnerable to trafficking. The prostitution of children is known to
exist in Barbados; a high risk group is Barbadian and immigrant
children engaging in transactional sex with older men for material
goods. There is also evidence that some foreigners have been
subjected to forced labor in Barbados, with the highest risk
sectors being domestic service, agriculture, and construction.
The Government of Barbados does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. Despite these efforts, the
government has not shown evidence of increasing efforts over the
previous year; therefore, Barbados is placed on Tier 2 Watch List.
The main obstacles to anti-trafficking progress in Barbados were:
the new legislation’s failure to criminalize all forms of trafficking in
persons; the government’s absence of formal procedures to guide
officials in victim identification and assistance; and the absence of
a formal mechanism to coordinate government and NGO actions
on trafficking issues.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Barbados is a major offshore center with a large international
business company (IBC) presence. The country is vulnerable to
money laundering, which primarily occurs in the formal banking
system. Domestically, money laundering is largely drug-related
and appears to be derived from the trafficking of cocaine and
marijuana, as Barbados is a transit country for illicit narcotics.
There is also evidence of Barbados being exploited in the layering
stage of money laundering with funds originating abroad. The
major source of these funds appears to be connected to fraud.
As of November 2010, there are six commercial banks in
Barbados. The offshore sector includes 2,643 IBCs, 161 exempt
insurance companies and 76 qualified exempt insurance
companies, ten mutual fund companies and one exempt mutual
fund company, nine trust companies, five finance companies and
53 offshore banks. There are no free trade zones and no
domestic or offshore casinos. Offshore banks are subject to the
same supervision as domestic banks. Additionally, permission
must be obtained from the Central Bank to move currency abroad.
IBCs are subject to enhanced due diligence requirements for IBC
license applications and renewals. Bearer shares are not
permitted, and financial statements of IBCs are audited if total
assets exceed $500,000.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, notaries, gaming centers, and securities dealers
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Barbados is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.cfatf-gafic.
org/downloadables/mer/Barbados_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The GOB should be more aggressive in conducting examinations
of the financial sector and maintaining strict control over vetting
and licensing of offshore entities. The GOB should devote
sufficient resources to ensure the FIU, law enforcement,
supervisory agencies, and prosecutorial authorities are properly
staffed and have the capacity to perform their duties. The GOB
should amend its legislation to allow for the seizure of suspected
illegal funds at the border and to allow the freezing of funds or
assets linked to terrorism or terrorist financing. Barbados should
consider the adoption of civil forfeiture and asset sharing
legislation. Supervision of nonprofit organizations, charities,
DNFBPs, and money transfer services should be strengthened,
as should information sharing between regulatory and
enforcement agencies. Finally, to further enhance its legal
framework against money laundering, Barbados should move
expeditiously to become a party to the UN Convention against
Transnational Organized Crime and the UN Convention against
Corruption.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Royal Barbados Police Force (RBPF) has a drug squad that
is guided by the Barbados National Anti-Drug Plan. The National
Plan outlines the policies, goals, strategies and legislation to
combat narcotics trafficking. The government says it is
considering updating the plan in 2012. The drug squad focuses
on major traffickers and is the focal point for international
cooperation. It works closely with the Regional Security Systems
(RSS) Air Wing, the RBPF Marine Unit, and the Barbados Coast
Guard.
Barbados has a coastal radar system (Inter Coastal Surveillance
Systems Radar) that has yet to achieve 360-degree coverage of
the island. RSS aircraft, the RBPF Marine Unit patrol vessel, and
the Barbados Coast Guard patrol vessels are the main
enforcement assets used by law enforcement to monitor seaborne
illegal narcotics movements.
The government introduced no new legislation or additional
funding to assist drug enforcement during 2011. Legislation
requires record keeping on precursor chemicals and the
importation of pseudoephredrine, ephedrine and pharmaceutical
products containing those two chemicals. Sustained high
unemployment has brought new players into drug trafficking,
according to police officials.
Barbados is a party to the three UN Drug Conventions. Barbados
has signed, but not yet ratified, the UN Convention against
Transnational Organized Crime and its three Protocols, and the
UN Convention against Corruption. Although Barbados has not
signed the Inter-American Convention on Extradition or the Inter-
American Convention on Mutual Assistance in Criminal Matters, its
Mutual Assistance in Criminal Matters Act allows it to provide
mutual legal assistance to countries with which it has a bilateral
mutual legal assistance treaty, Commonwealth countries, and
state-parties to the 1988 UN Drug Convention. Barbados is a
party to the Inter-American Firearms Convention. Lastly, Barbados
has a comprehensive maritime counterdrug bilateral agreement
(excluding ship rider provision), an extradition treaty and a Mutual
Legal Assistance Treaty in force with the U.S.
Law enforcement officials report an increasing number of drug
couriers arriving via air, notably on flights from Jamaica,
smuggling drugs in their stomachs. On a single flight in August,
ten passengers were found to have swallowed drugs. In 2011,
cannabis was the only drug found under cultivation. Police seized
16,121 plants, mostly during eradication. They do not measure
acreage. As in 2010, police encountered no drug laboratories.
From January 1 until October 13, total drug seizures in Barbados
were: 5 metric tons (MT) of cannabis; 64 kg of cocaine and one
ecstasy tablet, seized from an incoming air passenger. Eighty
nine percent of total cannabis seizures and ten percent of total
cocaine seizures were made at sea. In 2011, 186 persons were
arrested and prosecuted for drug related offenses. Statistics on
convictions were not available as of November. Five major drug
traffickers were prosecuted during 2011.
Barbados has the Drug Abuse and Resistance program in
schools. There are other drug demand reduction programs
sponsored by the National Council on Substance Abuse and the
National Committee for the Prevention of Alcoholism and Drug
Dependency. Police contacts assess these entities need to revise
their strategy, pointing to continued high levels of cannabis
consumption among the populations and increased youth drug.
There are four drug rehabilitation clinics in Barbados, one of
which is specifically for youth.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Barbados is a source and destination country for men, women,
and children subjected to sex trafficking and forced labor. In a
welcomed move over the last year, officials spoke more openly
about the likely profile of human trafficking in Barbados, which is
similar to those of other countries in the region. Evidence
suggests there are foreign women forced into prostitution in
Barbados. Legal and illegal immigrants from Jamaica, the
Dominican Republic, and Guyana appear to be the most
vulnerable to trafficking. The prostitution of children is known to
exist in Barbados; a high risk group is Barbadian and immigrant
children engaging in transactional sex with older men for material
goods. There is also evidence that some foreigners have been
subjected to forced labor in Barbados, with the highest risk
sectors being domestic service, agriculture, and construction.
The Government of Barbados does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. Despite these efforts, the
government has not shown evidence of increasing efforts over the
previous year; therefore, Barbados is placed on Tier 2 Watch List.
The main obstacles to anti-trafficking progress in Barbados were:
the new legislation’s failure to criminalize all forms of trafficking in
persons; the government’s absence of formal procedures to guide
officials in victim identification and assistance; and the absence of
a formal mechanism to coordinate government and NGO actions
on trafficking issues.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| BARBADOS |
| KnowYourCountry |
|
_________________________________________________________________
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1 peer
review for Barbados
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Intelligence Unit (FIU)
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1 peer
review for Barbados
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Intelligence Unit (FIU)
|
| Last Updated: 16 April 2012 |