Central Bank of Barbados’ Newsletter Examines Challenges posed by New International Regulations and Standards

The Central Bank of Barbados (CBB) is pleased to announce the May issue of its quarterly International Business and Financial Services Sector (IBFS) Newsletter.

This edition centres on the challenges international business sectors will face with the implementation of new and/or revised international regulations and standards.

Bruce Zagaris, Attorney- at-Law and a partner of the firm Berliner, Corcoran & Rowe LLP, Washington, D.C., as well as an adviser to the Government of Barbados, presents one such article. He highlights some of the practical difficulties anticipated in the implementation of the recommended changes to the Revised Financial Action Task Force (FATF) and suggests areas on which Barbados should pay close attention.

In his article titled “The Way forward after the Revised FATF” Zagaris also draws special attention to the proposed new rule by the US Treasury Financial Crimes Enforcement Network (FinCen) of requiring financial institutions to conduct an explicit customer due diligence (CDD) and to identify the beneficial ownership of their account holders. FinCen explained that the new CDD programme rule is part of a broader US Department of the Treasury strategy to enhance financial transparency.

  • Cheryl Greenidge, Deputy Director of the CBB’s Bank Supervision Department, presents a regulator’s perspective in an article on “A Risk Based Approach and the Implementation of New FATF Standards”. She makes the point that the Interpretative Notes to the 10 Recommendations put forward are critical to understanding the challenge ahead of us.

{CLICK FOR BIGGER, FILE IMAGE - EXTREME RIGHT, w/PLACECARD} Sitting alongside these articles is a piece by Henderson Holmes, Chief Executive Officer of the Barbados International Business Association, outlining the country’s concerns about the Foreign Account Tax Compliance Act (FATCA). One worry highlighted is that compliance could contravene local laws to which the banking and financial institutions are obligated.

Ricardo Knight, President of Towner Management Group and Chairman of the Joint Policy Working Group, tells us about the Group, its composition, activities and terms of reference.

Marlene Bayne, Director of the CBB’s Bank Supervision Department, looks at the objectives and activities of the Group of International Finance Centre Supervisors. The Group, which was formed in October 1980, decided to better reflect the scope of its activities through a change of name from the Offshore Group of Banking Supervisors to the Group of International Finance Centre Supervisors (GIFCS). The membership of the Group covers 18 jurisdictions including Barbados, which is a founding member.

Laurie Blackman, Librarian, reviews the Bank’s IBFS Seminar held earlier this year, providing insights into the key issues discussed.

This issue ends with John Haag, Barbados’ International Business Consultant in Canada, providing an update on the “Tax Information Exchange Agreements” in place with Canada and other jurisdictions and “10 Fast Facts about FATCA” by Francois Hendy, Tax and Investment Attorney and Lead Negotiator, Barbados Tax and Investment Treaty Team.

The IBFS Newsletter, which is published quarterly in the months of February, May, August and November analyses issues affecting the International Business and Financial Services Sector.

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