Businesses at risk

Dealers in precious metals and precious stones are being told to watch out for those who may want to use their establishments to launder money or support acts of terrorism.

 

The advice has come from Director of the Financial Intelligence Unit (FIU), Shelley Nicholls-Hunte, who said these businesses are potentially at risk to be exposed to such activity, as commercial banks have beefed up their systems to prevent their facilities from becoming pawns in any such efforts.

 

“We know that the commercial banks for example are part of a well regulated financial system and so as the commercial banks become more and more adept at formalising their structures as it relates to anti-money laundering [and] realise that anyone who really wants to be involved in an illegitimate activity, would want to shy away from commercial banks and go to other sectors that may not be as well regulated or regulated as yet,” she noted in an interview with the media.

 

To that end, she explained that there are certain gatekeepers that the Paris-based intergovernmental body, the Financial Action Task Force, has identified to be regulated, recognising they could be used by persons to gain access to the financial system. She said among them are attorneys, accountants, the dealers of precious metals and precious stones, real estate agents and even car dealerships, which Barbados has not legislated for as yet.

 

“So we want to sensitise the dealers of precious metals and precious stones to this fact and to have them aware as to what the legislation requires of them. There are sanctions in the legislation for failure to do certain things, but we would not want to impose a sanction without giving an opportunity for a particular sector to know what is there inside the legislation to protect them,” she said.

 

Nicholls-Hunte made the point as she noted that Barbados is preparing for its mutual evaluation exercise with the Caribbean Financial Action Task Force this December, which will assess the anti-money laundering climate in Barbados in the legal, law enforcement and financial sectors. She indicated that as part of the preparation process the FIU is meeting with the at risk sectors to apprise them as to the regimes they should have within their businesses, including anti-money laundering compliance programmes.

 

“Basically being sensitised so that they would know what to look for if it is that any activity, whether suspicious or unusual, occurs within their business,” she stated.

 

The FIU director revealed that as part of the mutual evaluation exercise every country is also required to conduct a national risk assessment, so as to identify, assess and mitigate their risks of money laundering and terrorist financing.

 

“The question that is being asked to every sector, including the dealers of precious metals and precious stones, what is your risk of money laundering?”

 

She said the players in that sector will be asked to complete anonymous questionnaires, which will allow the FIU to assess the risks that this sector might pose, if any, for money laundering and terrorists financing. (JRT)