Authorities ensuring country is prepared to handle financial threats

The relevant local authorities are taking the threats posed to this country by money laundering quite seriously.

Randy Graham, Chief Executive Officer of the Financial Services Commission (FSC), told those attending the first session of the Institute of Internal Auditors Barbados Chapter’s conference, yesterday morning at the Lloyd Erskine Sandiford Centre, being held on the topic ‘National Risk Assessment on Money Laundering and Terrorism Financing Risks in Barbados: Understanding Your Role’, that many resources have been put in place to prevent money laundering and terrorism financing in this country.

“We have the Anti-Money Laundering Authority that is made up of representatives from the FIU – the Financial Intelligence Unit; we have representatives from the Barbados Revenue Authority; we have representatives from the Port, Customs; we have representatives from the police; we have representatives from the Central Bank, from the Financial Services Commission... all on the board representing material sectors, who meet monthly to determine the policies for money laundering in the country,” he said.

The FSC CEO, referring to the mutual evaluation exercise with the Caribbean Financial Action Task Force that the country is currently preparing for, said that a ministerial committee, led by Attorney General, Adriel Brathwaite, has been established. That exercise, he stated, is intended to assess the anti-money laundering climate in Barbados in the legal, law enforcement and financial sectors, and, he indicated, through the ministerial committee, resources are being allocated to set up appropriate structures to combat the threats.

“It is not just money laundering, terrorism is an issue as well, and an issue that is coming closer and closer to home. We have heard the reports of the folks in Trinidad leaving the country to be involved in ISIS. They are not going to bank and asking for loans to go to train with ISIS – the funding is coming from sources that are not legitimate. When we heard the reports of the hand grenades and so on being found in Trinidad, they were not purchased with a credit card that was legitimately issued; he did not write a cheque and pay for them,” he said.

Reaffirming that these activities are “happening closer and closer to home”, the regulator said it is imperative that the Barbadian authorities ensure that the requisite systems are properly in place to deal with such realities.

He added, “We are measuring the risks at two ends – whether there is a threat, and if there is a threat, if there is a vulnerability in place. We may not be able to control a threat to the country, but we can certainly control our own vulnerability, and we can reduce our vulnerability by having appropriate systems in place.”

With that in mind, he noted that in addition to the Anti-Money Laundering and Financing of Terrorism Act, there is also the International Corporate and Trust Service Providers Act, and the Foundations Act, which indicate clearly what persons can and must do to prevent money laundering. Contending that ignorance of the law is not a defence, he said that companies and entities must make themselves au fait with the various pieces of legislation that pertain to them. He warned that failure to adhere to the law could result in them facing severe penalties. (JRT)