Barbados Country Summary

FATF Status

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

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 made significant strides in combating corruption and organized crime, with the government implementing laws and initiatives aimed at enhancing transparency and accountability, such as the Prevention of Corruption Act and the establishment of a public investment dashboard. However, challenges remain, including the presence of localized gangs involved in drug trafficking and the need for improvements in the judicial system to address delays in prosecutions, highlighting the ongoing resilience efforts against crime and corruption in the country.

Barbados boasts the largest economy in the Eastern Caribbean, with an estimated GDP of $7.09 billion in 2024, and is projected to grow by 3 percent by the end of 2025, according to the International Monetary Fund. The economy is primarily driven by the services sector, particularly in niche tourism, international business, and financial services, while the gradual decline of the sugar industry has opened opportunities for agricultural diversification and niche manufacturing. The government actively promotes foreign direct investment through Invest Barbados, which facilitates investment in key sectors and maintains a transparent regulatory framework, although challenges such as supply chain delays and volatile prices for food and fuel persist.