BARBADOS’ AML/CFT REGULATORY FRAMEWORK Presented by the Financial Intelligence Unit Wednesday, 25 October 2017
INTERNATIONAL & REGIONAL ORGANISATIONS Financial Action Task Force (FATF) ▪ ▪ fatf-gafi.org ▪ Caribbean Financial Action Task Force (CFATF) ▪ cfatf-gafic.org
FINANCIAL ACTION TASK FORCE ▪ 34 jurisdictions + 2 regional bodies ▪ 22 observers ▪ 8 FATF-style regional bodies ▪ Over 180 jurisdictions have endorsed the FATF Standards
FINANCIAL ACTION TASK FORCE The FATF mandate (2012- 2020): ▪ Sets standards to combat ML, TF & PF ▪ Assesses compliance with the FATF standards ▪ Identifies & responds to threats to the integrity of the international financial system: high-risk jurisdictions and typologies studies .
FINANCIAL ACTION TASK FORCE Forty Recommendations on combatting money laundering and the financing of terrorism and proliferation ▪ Legal Systems ▪ Measures taken by financial & non-financial institutions (DNFBPs) ▪ Institutional measures ▪ International cooperation
CARIBBEAN FINANCIAL ACTION TASK FORCE ▪ Created in 1992 ▪ 27 members ▪ Main objective ▪ To achieve effective implementation of and compliance with its recommendations to prevent and control ML and combat TF
CARIBBEAN FINANCIAL ACTION TASK FORCE Monitors members through: ▪ Self-assessment of the implementation of the recommendations. ▪ An on-going programme of mutual evaluation of members. ▪ Co-ordination of, and participation in, training and technical assistance programmes. ▪ Biannual plenary meetings for technical representatives. ▪ Annual Ministerial meetings
COMMON FEATURES • FATF & CFATF PUBLIC STATEMENTS • INTERNATIONAL COOPERATION REVIEW GROUP • UN TERRORIST LISTS
Barbados’ CFATF Mutual Evaluation Exercise • 2006 Mutual Evaluation Exercise culminated in 2008 Mutual Evaluation Report • 2016 Mutual Evaluation Exercise to be finalized in November 2017 Mutual Evaluation Report • National Risk Assessment 2016
MINISTERIAL LEVEL REGULATORS’ LEVEL AMLA CENTRAL INTERNATIONAL FINANCIAL BANK SERVICES BUSINESS COMMISSION DNFBPs: Corporate Accountants Banks & Securities And Trust Second International Credit Unions Service Schedule Insurance Banks Providers MLFTA 2011
AMLA & THE FIU AMLA FI U
DEFINITION OF FIU A central, national agency responsible for receiving, (and as permitted, requesting), analysing and disseminating to the competent authorities, disclosures of financial information: concerning suspected proceeds of crime and potential financing of ▪ terrorism, or ▪ required by national legislation or regulation, in order to combat money laundering and terrorism financing. – Egmont Group of FIUs.
CORE FUNCTIONS OF FIU ▪ Receive ▪ Request (As permitted) ▪ Analyse ▪ Disseminate ▪ to the competent authorities, disclosures of financial information .
BARBADOS’ FIU ▪ Established – 2000 ▪ Type – Administrative ▪ Office of the Anti-Money Laundering Authority (AMLA)
LEGISLATIVE FRAMEWORK ▪ Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 ▪ Anti-Terrorism (Amendment) Act, 2015 ▪ Proceeds of Crime Act, Cap. 143 & other related laws relating to law enforcement
LEGISLATIVE FRAMEWORK ▪ Legislation related to Barbados’ legal capacity to assist countries ▪ Mutual Legal Assistance in Criminal Matters Act ▪ Extradition Act ▪ formerly Transnational Organised Crime (P&C)Act now Trafficking in Persons Act, Criminal Assets Recovery Act, Immigration (Amendment) Act
LEGISLATIVE FRAMEWORK • Principal legislation relating to the regulators • Central Bank of Barbados- eg. Financial Institutions Act - Central Bank AML/CFT Guidelines, etc • Financial Services Commission- eg. Financial Services Commission Act, Securities Act, FSC AML/CFT Guidelines, etc • International Business Division- eg. Corporate & Trust Service Providers Act, IBD AML/CFT Guidelines
LEGISLATIVE FRAMEWORK • AMLA has approved AML/CFT Guidelines in November 2016 for: • Accountants • Attorneys-at-Law • Dealers in Precious Metals & Stones • Real Estate Agents • MOU between AMLA & FSC for supervision: inspections of the DNFBPs.
DEFINITION OF NON-FINANCIAL BUSINESS ENTITIES Second Schedule-MLFTA,2011-23 An independent accountant engaged in any of the following: (a) the purchase, sale or other disposal of real property; (b) the management of the money, securities or other assets of a customer; (c) the management of bank savings or securities accounts;
DEFINITION OF NON-FINANCIAL BUSINESS ENTITIES d) the organisation of contributions for the creation, operation or management of bodies corporate; (e) the creation, operation or management of legal persons or arrangements; or (f) the purchase or sale of business entities
DEFINITION OF NON-FINANCIAL BUSINESS ENTITIES A corporate or trust service provider engaged in any of the following: (a)acting as a formation, registration or management agent of legal persons; (b) acting or arranging for another to act as a director or secretary of a company, partner of a partnership or in similar position in relation to other legal persons;
DEFINITION OF NON-FINANCIAL BUSINESS ENTITIES (c) providing a registered office, business address or accommodation or a correspondence or administrative address for a body corporate, partnership or other legal person or arrangement; (d) acting or arranging for another to act as a trustee of an express trust; or (e) acting or arranging for another to act as a nominee shareholder for another person.
DEFINITIONS Money laundering has been defined as the act or • attempted act to disguise the source of money or assets derived from criminal activity. It is the effort to transform “dirty” money, into “clean” money. • Terrorist financing- the financing of terrorism/ terrorist activity
MONEY LAUNDERING Stages of Money Laundering: ❑ Placement ❑ Layering ❑ Integration
TERRORIST FINANCING Stages of Terrorist Financing ▪ Acquisition ▪ Aggregation ▪ Transmission to terrorist organisation ▪ Transmission to operational cell ▪ Conversion
OFFENCE OF MONEY LAUNDERING A person engages in money laundering where (a) the person engages directly or indirectly in a transaction that involves money or other property or a benefit that is proceeds of crime ; or (b) the person receives, possesses, conceals, disposes of or brings into or sends out of Barbados any money or other property or a benefit that is proceeds of crime
OFFENCE OF MONEY LAUNDERING For the purposes of this section, a person engages in money laundering whether he knows or has reasonable grounds to suspect that the property is derived or realised directly or indirectly from some form of unlawful activity, or, where the person is (a) an individual he fails without reasonable excuse to take reasonable steps to ascertain whether or not the property is derived or realised directly or indirectly, from some form of unlawful activity; or
OFFENCE OF MONEY LAUNDERING (b) A financial institution or a non-financial business entity or professional, where the financial institution or a non-financial person business entity or professional financial fails to take reasonable steps to implement or apply procedures to control or combat money laundering
OFFENCE OF MONEY LAUNDERING Section 6 (1) A person who engages in money laundering is guilty of an offence. (2) Any person who attempts or who aids, abets, counsels or procures the commission of, or who conspires to commit the offence of, money laundering is guilty of an offence.
PENALTIES FOR MONEY LAUNDERING Section 6(1) -fine of $200,000 or to imprisonment for 5 years or to both in the Magistrate’s court; High Court-fine of $2,000,000 or imprisonment for 25 years or both in the High Court. Section 6(2) ) –Magistrate’s Court -a fine of $150,000 or imprisonment for 4 years or to both; High Court-a fine of $1,500,000 or to imprisonment for 15 years or both.
PENALTIES FOR TERRORIST FINANCING Penalty-imprisonment for a term of 25 years. Person who aids, abets, procures, counsels, incites, solicits the offence is liable to be punished as a principal offender.
QUESTIONS THANK YOU Financial Intelligence Unit P.O.Box 1372 Bridgetown BARBADOS, W.I Tel.: (246) 436-4734/35 Fax: (246) 436-4756 Email: snhunte@barbadosfiu.gov.bb fiu@barbadosfiu.gov.bb
Recommend
More recommend
