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If you engage in any of the activities listed in the second schedule of the MLFTA, then you are a DNFBP.
Note these are the activities which were outlined in the response to the FAQ – What is a DNFBP?
Yes. Below is a summary of Money Laundering and Terrorism Sanctions and Offences.
These are also outlined in the appendices of the Anti-Money Laundering/ Combatting the Financing of Terrorism/Countering Proliferation Financing Guidelines for each of the supervised sectors- Attorneys, Accountants, Dealers in Precious Metals and Stones and Real Estate Agents.
|
Area |
Description of Offence / Breach |
Description of Fine/Sanction |
Section of Legislation |
|---|---|---|---|
|
Reporting Obligations |
Failure to make a report on a transaction involving proceeds of crime, the financing of terrorism or is of a suspicious or unusual nature to the FIU Director. |
$100,000 on directors jointly and severally and /or 5 years imprisonment |
Section 23 (2) MLFTA |
|
|
Failure to maintain business transactions records. |
$100,000 on directors jointly and severally |
Section 18(4) MLFTA |
|
|
Failure of a person to report transfers out of Barbados or transfers Barbadian currency or foreign currency into Barbados, of more than BDS$10,000 without Exchange Control permission. |
Summary conviction - $10,000 or 2 years imprisonment
Conviction on indictment - $200,000 or 5 years imprisonment |
Section 24(6) MLFTA |
|
|
Failure by a person to report receiving more than BDS$10,000 in Barbadian currency (or foreign equivalent) without the Exchange Control permission. |
Summary conviction - $10,000 or 2 years imprisonment
Conviction on indictment - $200,000 or 5 years imprisonment |
Section 24 (6) MLFTA |
|
Internal Policies, procedures, controls; Internal reporting procedures; Internal employee training and awareness programs |
Failure to develop policies and procedures; audit functions; and procedures to audit compliance. |
Imposition of a pecuniary penalty (up to $5,000 for any of the circumstances referred to at section 34(1) of the MLFTA; $500 daily for failure to take a measure or action or cease a behaviour or practice) in accordance with section 36. |
Section 19(2) of the MLFTA |
|
Information Gathering & Investigations |
Failure to comply with any instruction issued or request made by the FIU Director. |
The licence of the financial institution may be suspended. |
Section 30(5) of the MLFTA. |
|
Onsite Inspections |
Failure to comply with an instruction or request made by an authorised officer or Regulatory Authority. |
The licence of the financial institution may be suspended. |
Section 31(4) of the MLFTA |
|
Interference in the Line of Duty |
The obstruction, hindrance, molestation or assault to any member of the Authority, constable or other person in performing duties under the Act. |
$50,000 or imprisonment of 2 years or both. |
Section 42 MLFTA |
|
Directives |
Contravention of the Act but circumstances do not justify taking action under sections 34, 35 or 36 of the MLFTA. |
Issuance of directives by the Anti-Money Laundering Authority or Regulatory Authority to cease and desist. |
Section 33 of the MLFTA. |
|
Money Laundering Offences |
Engagement in money laundering. |
Summary conviction - $200,000 or 5 years imprisonment or both.
Conviction on indictment - $2,000,000 or 25 years imprisonment or both.
Forfeiture of licence for financial institution. |
Section 6 (1) MLFTA
Sections 35 & 46(1) |
|
|
Providing assistance to engage in money laundering. |
Summary conviction - $150,000 or 4 years imprisonment or both.
Conviction on indictment - $1,500,000 or 15 years imprisonment or both |
Section 6(2) MLFTA |
|
|
A body of persons (corporate or unincorporated) whether as a director, manager, secretary or other similar officer engaging in a money laundering offence. |
Subject to trial and punishment accordingly. |
Section 44 MLFTA |
|
Disclosure of Information |
Disclosure of information on a pending money laundering investigation. Falsifying, concealing, destruction or disposal of information material to investigation or order. |
$50,000 or 2 years imprisonment or both |
Section 43(b) MLFTA |
|
|
Disclosure or publication of the contents of any document, communication or information in the course of duties under this Act. |
$50,000 or 5 years imprisonment or both. |
Section 48(3) MLFTA. |
|
Terrorism Offences |
Provision or collection funds or financial services to persons to be used to carry out an offence as defined in the listed treaties[1] or any other act. |
Conviction on indictment to 25 years imprisonment. |
Section 4(1) Anti-Terrorism Act |
|
|
Provision of assistance or involve in the conspiracy to commit a terrorist offence. |
Conviction on indictment and principal offender punished accordingly. |
Section 3 of ATA |
|
|
A terrorist offence committed by a person responsible for the management or control of an entity located or registered in Barbados, or otherwise organised under the laws of Barbados. |
$2,000,000 notwithstanding that any criminal liability has been incurred by an individual directly involved in the commission of the offence or any civil or administrative sanction as imposed by law. |
Section 5 of ATA |
[1] Treaties respecting Terrorism: Convention for the Suppression of Unlawful Seizure of Aircraft, Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons including Diplomatic Agents, International Convention against the taking of Hostages, Convention on the Physical Protection of Nuclear Material, Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, supplementary to the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, Convention for the suppression of Unlawful Acts against the Safety of Maritime Navigation, Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms located on the Continental Shelf and the International Convention for the Suppression of Terrorists Bombings.
The Compliance Unit will advise the DNFBPs of the various procedures they should have in place to be compliant.
The link below provides a step-by-step guide for completing the STR form.
The Compliance Unit utilises a risk-based approach to supervision.
All DNFBPs are risk-assessed by evaluating the inherent vulnerabilities, and the mitigating controls that are in place to determine the residual risk of the entity.
Section 18 of the MLFTA indicates business transaction records should be maintained for a minimum of five years. However, it may be necessary to retain records until such time as advised by the FIU or High Court for the period exceeding the statutory period beginning from the date of termination of the last business transaction where:
- There has been a report of suspicious activity; or
- There is an on-going investigation relating to a transaction or client.
You can contact the Compliance Unit here.
The Compliance Unit of the Anti-Money Laundering Authority performs the following functions:
- Assess regulatory submissions and applications from the DNFBPs,
- Analyse performance in accordance with the MLFTA,
- Conduct Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) risk assessments,
- Conduct AML/CFT inspections of the entities and issue recommendations for corrective actions,
- Conduct follow up meetings with the DNFBPs with respect to the submitted action plans to ensure that they have implemented the recommended actions.
A Designated Non-Financial Businesses and Professionals (DNFBP) is an individual or entity that conducts any of the following activities, as listed in the second schedule of the MLFTA.
- A real estate agent involved in transactions concerning the purchase, sale or other disposal of real property.
- A dealer in precious metals or precious stones engaged in financial transactions equal to or above the value set out in guidelines of the Authority.
- An independent attorney-at-law or accountant engaged in any of the following:
- the purchase, sale or other disposal of real property;
- the management of the money, securities or other assets of a customer;
- the management of bank savings or securities accounts;
- the organisation of contributions for the creation, operation or management of bodies corporate;
- the creation, operation or management of legal persons or arrangements; or
- the purchase or sale of business entities.
The abbreviation “STR” represents a Suspicious Transaction Report. Section 23 of the MLFTA indicates that DNFBPs shall monitor and report PROMPTLY to the Director of the Financial Intelligence Unit, any transaction where it is reasonably suspected that it meets any of the following criteria: -
- The transaction involves proceeds of crime,
- The transaction appears to involve the financing of terrorism,
- The transaction is of a suspicious or an unusual nature, or and
- The transaction is conducted by, or relates to, a person against whom a terrorist designation order or counter proliferation order is in force or relates to the property of such a person.
Customer due diligence is an important component to help detect and combat money laundering and terrorist and proliferation financing.
Know Your Client/Customer Due Diligence (CDD) refers to the collecting of all relevant documentation in order to:
Identify and Verify the following criteria:
- The client’s identity,
- The beneficial owner’s identity,
- The understanding of the purpose and nature of the business relationship,
The implementation of effective CDD/KYC procedures would allow the DNFBP to accurately assess the AML/CFT risk associated with each client.
On-going monitoring refers to the sustainability of customer due diligence (CDD)/ Know your customer (KYC) procedures subsequent to the on-boarding of the client at the inception of the relationship.
At a minimum, on- going monitoring would include the DNFBP ensuring that the client activity is in line with the client’s profile and risk rating.
In addition the on- going monitoring would also refer to the DNFBP ensuring that all pertinent CDD/KYC documents obtained at the on boarding stage are reviewed and the client files updated for any changes.
The frequency of the on-going monitoring should be determined by the DNFBP based on the various risk profiles of the customers.
The Compliance Unit of the Anti-Money Laundering Authority (AMLA) was created by legislative amendment of the Money Laundering and Financing of Terrorism (Prevention & Control) Amendment No. 2 Act 2019-58 (MLFTA).
The Compliance Unit is the supervisory body for the Designated Non-Financial Businesses and Professionals (DNFBPs)
The AML compliance policies of DNFBPs are reviewed using both the the guidance of the Anti-Money Laundering/ Combatting the Financing of Terrorism/Countering Proliferation Financing Guidelines for each of the supervised sectors- Attorneys, Accountants, Dealers in Precious Metals and Stones and Real Estate Agents and the Money Laundering and Financing of Terrorism (Prevention & Control) Amendment No. 2 Act 2019-58 (MLFTA).
The Guidelines comprises of the various components which should be addressed in the AML policy document.
- Risk Assessment
- Customer Due Diligence
- Suspicious Transaction Reports
- Politically Exposed Persons
- Record Keeping
- Targeted Financial Sanctions
- Training
- Internal Audit
All completed STR forms should be submitted to the Financial Intelligence Unit here.
A Politically Exposed Person ((PEP) is an individual who has an important position in public life; therefore, at high risk of corruption. PEPs can be foreign, domestic, international organisations, family members and close associates.
Non-financial institutions are monitored because they are seen as gatekeepers.
Gatekeepers are businesses or professionals that are able to provide access into the financial system.