AML Framework enhancement in progress

The Financial Services Commission (FSC) is in the process of advancing an enhanced Anti-Money Laundering (AML) framework for the non-bank financial sector.

This is consistent with the best practice guidance of the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF).

Word of this comes from Minister of Small Business, Entrepreneurship & Commerce, Dwight Sutherland, as he stressed that Barbados as a jurisdiction of repute in the financial services industry, must ensure that while creating an enabling environment, it mitigates the deleterious effects of crimes such as money laundering and terrorist financing.

Sutherland, who was at the time addressing the 60th Anniversary Dinner & Awards Gala of the Barbados Co-operative & Credit Union League Ltd., at the Hilton Barbados Resort, said that it is incumbent on all stakeholders that their risk management tools are appropriate.

“The financial services sector is under increased scrutiny and credit unions must play their part to ensure that the threat of money laundering is adequately mitigated if not eradicated,” he emphasised, while indicating that Barbados is poised to ascend to the chairmanship of the CFATF in November 2018 and must fully embody the guidance of that organisation by ensuring that the highest standards are obtained.

Furthermore, the Minister revealed that the FSC is conducting a comprehensive review of all FSC enabling legislation to ensure that the thrust towards a risk-based supervisory framework for the non-bank financial sector is appropriately supported by law.

“Credit unions will be required to maintain practices consistent with established standards. They must ensure that appropriate risk management systems, scaled to size and complexity, are implemented and adhered to.

There must be constant monitoring, reporting measuring and management of risk.”

Going forward, Sutherland also urged credit unions to be acutely mindful of the benefits of business continuity planning, cyber security and the impact of man-made and natural disasters.

He said that serious consideration should be given to business continuity planning and procedures for events, whether it be natural events such as hurricanes or earthquakes or having to respond to other exogenous shocks that may have a direct impact on the performance of the entities.

“These documented policies will provide clarity and guidance to employees on the processes that should be followed in times of unplanned events,” he explained. (TL)