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 faces challenges related to crime and corruption, although the government is actively working to enhance transparency and accountability within its institutions. While there are instances of organized crime, particularly in drug trafficking and human trafficking, law enforcement agencies are well-resourced and collaborate effectively to combat these issues, though the judicial system suffers from delays in prosecution.

Barbados, with an economy valued at approximately $6.4 billion, is the largest in the Eastern Caribbean, yet it faces challenges such as supply-chain disruptions and rising consumer prices due to global crises. The International Monetary Fund (IMF) projects a growth rate of 3.7% for the Barbadian economy by the end of 2024, supported by a new IMF arrangement that aims to enhance public finance management and promote climate resilience through initiatives like the Blue-Green Bank. The government actively encourages foreign direct investment (FDI) in key sectors such as niche tourism, international financial services, and renewable energy, while maintaining a legal framework that supports transparency and protects property rights, although the judicial system is perceived as slow in resolving commercial disputes.